Surprise! Obama won't 'rule out' Middle Class tax increase

"The president had said in the past that he  doesn't believe taxing health care benefits at any level is necessarily the best way to go here.  He still believes that," Axelrod told me on This Week, "But there are a number of formulations and we'll wait and see.  The important thing at this point is to keep the process moving, to keep people at the table, to the keep the discussions going. We've gotten a long way down the road and we want to finish that journey."

I pressed Axelrod on whether Obama will draw a line in the sand and veto any bill that funds health care reform with tax hikes for people making under $250,000 a year -- despite a pledge Barack Obama made during the 2008 presidential campaign not to raise taxes on the poor and middle-class.

"One of the problems we've had in this town is that people draw lines in the sand and they stop talking to each other.  And you don't get anything done.  That's not the way the president approaches us.  He is very cognizant of protecting people -- middle class people, hard-working people who are trying to get along in a very difficult economy.  And he will continue to represent them in these talks," Axelrod said.