The conventional wisdom is that Democrats will be so scared to allow a tax increase on all Americans that they will sign off on a tax cut for the wealthy as the Republicans play political terrorists.
It is important that Democrats demonstrate a willingness to do the right thing, which is to allow all the tax cuts to expire and taxes to rise on all Americans.
The economy will experience a recovery no matter what Washington does. Just as the economy experienced a slow-down and deep recession WITH THESE TAX CUTS IN PLACE!
Democrats can take the benefits of deficit reduction. Eventually Republicans will take what they can get. If they don't, they be left with a booming economy while taxes went higher. That would shatter their world-view.