Tax Cuts, the Deficit and the November Election

Tax cuts signed into law by George W. Bush were attacked for making the rich richer at the expense of the Middle Class, and for helping to turn a federal surplus into a deficit. They are scheduled to expire at the end of this year and Republicans are warning of the biggest tax increase in history. President Obama wants to let the tax cuts expire in the top bracket, but keep them in place for individuals making $200,000 or less and for couples at or below $250,000. The impending epic political battle will have high stakes for taxpayers, the deficit and economic recovery. Will Republicans and Democrats find a middle ground in an election year?  What are the consequences of no action at all?