Tax fight dominates agenda as Congress returns

>> in washington , the big debate over tax cuts took a new turn today, with the house republican leader signaling at least some flexibility on the issue, nbc's mike vicera is at the white house with more.

>> president obama returns to washington this week for a short stay. there's new hope tonight for a compromise on tax cuts .

>> god bless america !

>> eight weeks before election day , a victory at the ballot box . a conservative rally in washington was the message. the tea party is not losing steam.

>> usa! usa!

>> with democrats now facing the prospect of being swept if power in congress, today activists gathered here, in sacramento and st. louis. to press for victory in november.

>> we've got to stop the spending and stop the taxes.

>> a fight over taxes dominates the agenda. at issue extending bush-era cuts. president obama wants them to expire for the wealthiest households making $250,000 or $200,000 for single filers and extend them for the middle class . republicans and even some democrats say with the economy still sluggish, tax cuts should be extended for everyone, including the wealthy. that has drawn fire from the white house .

>> on the middle class tax cuts , let's not hold them hostage.

>> we're going to give this very small numb of people at the top, a tax cut that we can't afford. but today, a new opening.

>> i'll vote for it.

>> top republican john boehner signaled he would not try to block the obama plan.

>> if the only option i have is to vote for those of 250 and below, of course i'm going to do that.

>> late today, white house press secretary robert gibbs issued a cautious reaction. time will tell if his actions will be anything but continued support for the failed policies that got us into this mess. meanwhile, another tax battle looms. a cut for small businesses . the president has repeatedly hammered republicans for blocking the measure.

>> the minority of republican senators have been using legislative tactics to prevent the bill from even getting to a vote.

>> and kate, on that small business tax cut , good news for the president, one retiring republican senator george voinovich of ohio says he's going to turn around and vote for it. that means that that tax cut could be on the president's desk by the end of this week. kate?

>> mike vicara at the white house .