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Here is the strategy I believe Obama should take when dealing with the extension of the Bush tax cuts.
STEP ONE: Appear reasonable. Declare that you want to extend the tax cuts for everyone until April or May of next year. Make it clear that you don't want any conditions or stipulations attached to this, and that you're doing this because you want to work with Republicans.
STEP TWO: After the new Republican's are all sworn into office, it is now time to declare that you want to begin working with them on this issue. Allow Republican's to make their proposal.
STEP THREE: Declare that you will veto any extension of the tax cuts if they are not paid for in full. Make it clear that, "The voters have spoken, and I heard their message loud and clear. They want us to balance the budget and deal with the deficit. I take the voters very seriously. The Republican's must not be allowed to lapse back into their old habits of spending us into bankruptcy."
STEP FOUR: If the Republican's refuse to propose the necessary cuts to pay for the extension, go to the American people and declare that the Republican's want to raise everyone's taxes. Make it clear that by not paying for them, they aren't really lowering anyone's taxes - they're just making sure that you have to pay for it later. "There is no such thing as a free lunch."
STEP FIVE: If the Republican's actually propose and pass legislation in the House detailing where they'd cut - demagogue the living hell out of it. Republican's propose cutting something from the Social Safety net? Awesome. "Why are the Republican's attacking our Senior citizens, who have already been hit so very hard by the Great Recession. We cannot afford to cut their Medicare and Social Security." Do the Republican's do something drastic and decide they want to cut Defense? "Why are the Republican's undermining our national security? They're putting us all in danger!" In other words: No matter what cuts they propose nail them on it, again and again. Go forth and have every Democrat repeat the various talking points endlessly - again and again. Perception is reality. Republican's hate old people, want to endanger our lives by cutting defense spending, and hate the troops because they want to cut Veterans benefits.
STEP SIX: Since nothing the Republican's can do will please Obama, and he's spent months hammering them over the head with their proposed cuts... the tax extension ends. The Bush tax cuts - for everyone - is successfully repealed. Immediately every Democrat should step forward and declare that the Republican's have raised the taxes on EVERY SINGLE AMERICAN FAMILY right in the middle of the Great Recession. Declare how irresponsible it was of them to do this - play it to the hilt. "Now even more families are going to lose their jobs and homes!"
STEP SEVEN: Relish in the fact that the Republican's now must actually participate in governing, and that you're actually helping deal with the deficit and debt by ensuring that the tax cuts are repealed.
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