The NYT:

Senior Senate Republican aides said that an extension of all the income tax cuts was a foregone conclusion, but that a deal on jobless aid was possible if Democrats agreed to cover the cost. Democrats expressed indignation that Republicans were insisting on finding spending cuts to offset the unemployment benefits while being perfectly willing to add to the national debt the $700 billion cost of continuing the tax cuts on the highest incomes for the next decade.
Really, this is Obama's moment. I honestly believe his whole presidency will be defined here and now. If he backs down on this one, he will lose an entire generation.