Obama:A taxing compromise

“Right now, Democrats and Republicans in Congress are working through some differences to try to get this done,” Mr. Obama said. “And there are some serious debates that are still taking place. Republicans want to make permanent the tax cuts for the wealthiest Americans. I have argued that we can’t afford it right now. But what I’ve also said is we’ve got to find consensus here, because a middle-class tax hike would be very tough not only on working families. It would also be a drag on our economy at this moment.”

Caved? Or just an ugly compromise?
The deal
• Extends unemployment insurance for 13 months. Two million workers in December, and 7 million over the next year, would have lost benefits otherwise.
• Provides a one-year, 2 percentage point reduction in employees' Social Security payroll taxes, lowering the rate from 6.2% to 4.2%, at a cost of $120 billion.
• Keeps the Earned Income Tax Credit and American Opportunity Tax Credit increases from last year's economic stimulus law, for another $40 billion in tax cuts for families and students.
• Allows business to write off 100% of their capital purchases next year.
• Sets the estate tax at 35% for two years, with a $5 million exemption on assets that's higher than last year's $3.5 million. The rate came down under Bush's policy from 55% before 2001 to 45% in 2009 before expiring this year. It was set to return at 55% next year.

And, a little about the Democrats and the Bush tax cuts issue Digby sez:
Setting Up The Battle On Their Turf

I also think the Democrats are idiots not to have dispensed with this issue early on. But I'm guessing they too think this issue isn't a winner for them so they are always just planned to punt. But that raises the question again about the viability of the party. If they cannot even make a winning argument out of cutting taxes for 98% of the people then I'm not sure what they're good for.

And Vermont Senator Bernie Sanders from the other day spells it all out clearly

In an impassioned Senate floor speech last week, Sen. Bernie Sanders (I-VT) said that there is a war being waged on America's "disappearing and shrinking middle class."
"We talk about a lot of things on the floor of the Senate, but somehow we forget to talk about the reality of who is winning in this economy, and who is losing," he said. "And it is very clear to anyone who spends two minutes studying the issue that the people on top are doing extraordinarily well, at the same time as the middle class is collapsing and poverty is increasing."