Keep in mind that both tax cuts ibn 2001 (income) and 2003 (capital gains) were passed through Reconciliation which required only a majority Senate vote. The compromise expiration of both in 2010 (extended through 2012) was to obtain Democrats' agreement to reconciliation and to avoid a Democrat filibuster.

I've never understood the obsession of so many with increasing income tax rates for the rich. Such increases will net very little federal revenue (perhaps the increases will simply assuage some Americans' feelings). Congress' failure to extend the tax cuts will insure that the Nation's economic malaise will continue. Unless federal spending is significantly reduced for years to come, annual federal budget deficits will continue. However, I don't see how significant budget reductions can take place; realistically, I don't see where the cuts can take place.