In 1990 Pres George Bush, facing increasing deficits, agreed to a "budget deal" that involved higher taxes in exchange for cuts in programs. This was dubbed "The deal of the century" and also violated his "no new taxes" pledge and probably cost him a second term. So how did that turn out? Crime of the Century: The 1990 Budget Deal After Two Years (more at the source) So now Obama and the Dems are offering virtually the same deal: higher taxes in exchange for spending cuts. We've seen this film before and we know how it ends. Taxes will go up. The deficit will not go down, and the economy will continue suffering.