If the Dem's are really offering substantial cuts in spending that includes medicare then the republicans need to come to the table with to tax concessions in order to get a deal done. I think it is more important to get spending under control but in order to get you have to give. They dont have to cave and raise tax rates 15% but they need to allow for some additional revenue or they need to concede spending cuts in the military.
On the other hand the Dem's need to realize that offering some spending cuts now in order to get the debt ceiling raised does not satisfy what needs to be done long term and the new budget needs to have far more substantial cuts in it. But for right now I think they need to compromise.