Well it’s happened. Obama caved on taxes. Good. The American people are better off for it. The Bush era tax cuts will see an extension even for the “wealthiest Americans.” Hopefully the details can be worked out without much fuss from the Democrats who aren’t very happy; neither is Obama’s liberal base who feels he’s completely let them down. Man, these guys are never happy.

U.S. President Barack Obama departs after announcing a bi-partisan deal to extend expiring tax cuts for two years and to extend unemployment benefits in the Eisenhower Executive Office Building adjacent to the White House in Washington on December 6, 2010.   UPI/Roger L. Wollenberg Photo via Newscom

The details announced late yesterday include the extension of Bush tax cuts which were due to expire on New Year’s Eve. But along with that, Obama proposed a 2% Payroll tax cut for one year. I think this is the main point that is sticking in the craw of most democrats and liberals.

The Republicans did concede however to extend unemployment benefits through next year. To me this isn’t much of a concession because they were probably going to do it anyway. Fortunately they were able to use the unemployment extension as leverage against the democrats, who despite all of their hand wringing didn’t have the votes to stop the Bush era cuts from being extended.

Obama finds himself in a precarious position after agreeing with Republicans to extend tax cuts. If all goes smoothly and this extension is signed into law, it will help the economy. But despite that, Obama finds himself politically wounded with democrats and the liberal base.

One of the President’s campaign promises to the loony left was to repeal or allow the Bush tax cuts to expire. This isn’t going to happen and they’re not happy; which goes to show that once again what’s good for the country is bad for democrats. What a position to be in.

The President responded to his detractors by saying that Republicans were not willing to extend tax cuts for only the middle class so he allowed the extension of all tax cuts to keep taxes from rising across the board. Whatever, I don’t care as long as they were extended. Democrats and the liberal base, however, wanted to raise taxes on the upper brackets no matter what. They feel in large part that Obama caved to Republican demands.

Some speculate that this move may help Obama with moderates and independents with 2012 looming. I don’t know yet. But what I do know is that democrats and the liberal base are not happy with Obama right now. To win re-election, you not only need independents to break your way, you need your base to vote for you in strong numbers. Lucky for him, and perhaps unlucky for us, he has two years to make it up to them.