If this is true, the Obama administration will be starving the Federal government of billions of dollars of revenue that could have been pumped back into the economy to create jobs and end the recession. From the Huff Post:
President Barack Obama's top adviser suggested to The Huffington Post late Wednesday that the administration is ready to accept an across-the-board, temporary continuation of steep Bush-era tax cuts, including those for the wealthiest taxpayers.
That appears to be the only way, said David Axelrod, that middle-class taxpayers can keep their tax cuts, given the legislative and political realities facing Obama in the aftermath of last week's electoral defeat.
It looks like Obama will stand strong on health care and veto any Republican attempts to revoke his legislation, but this could be a fatal move. Extending the Bush tax cuts will ensure that the debt grows and the economy continues to falter. If Republicans are intent on cutting taxes without planning for growth, the economy could be stuck in a rut for years to come.