Posted by Suzy Khimm on December 5, 2012 at 3:51 pm

Democrats won’t compromise on tax hikes for the wealthiest 2 percent of Americans. And there are signs that this hard-line strategy may be working: Today, Sen. Tom Coburn (R-Okla.) became the latest Republican to say that he’d be open to increases in marginal tax rates to raise revenue.

“Personally, I know we have to raise revenue; I don’t really care which way we do it,” he told MSNBC. “Actually, I would rather see the rates go up than do it the other way, because it gives us greater chance to reform the tax code and broaden the base in the future.”

It isn’t the first time that Coburn, a Gang of Six member, has bucked GOP orthodoxy on taxes. But he joins the growing ranks of conservatives who say that it’s not worth the fight on upper-income tax rates, signaling that Republicans may ultimately concede the issue to Democrats.

As that reality has begun to sink in, there’s been a lot more talk about about how Republicans can best position themselves and what they might demand in exchange for increases in tax rates, assuming that they have lost that battle. That raises the question of what Democrats would be willing to concede in return.

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