Again, Republicans should call Obama's bluff and give him everything he's asking for. HE DOES NOT WANT THAT.
Above all else, Obama needs someone to blame for the coming economic disaster. He has to reach some kind of deal in order to have republicans to blame. If republicans were smart (they're not), they would wash their hands of this whole affair and let Obama be the sole author of the coming crash.
They are not going to be able to prevent tax increases (Obama has repeatedly said he'll veto any such bill) so we're going to take a dive no matter what.