Bingo. If the Republicans play this right, it means a White House win in 08'. This was mostly about a war that's dragged on for too long....not about taxes.
This not a awful thing. Will the Republicans finally get back on the reservation? They will have to to get the house back in 08'.
I'm not particularly convinced that the Republicans, including the President, even know where the reservation is, or what it stands for, much less that they'll get back on it.
But taxes are one thing they are usually on the right side of, and since it's taxes that enable Congress to perpetrate all the evils of which it is so enamored of perpetrating, then being more or less anti tax is a very great virtue.
OTOH, you can't spend like the Republicans do and be anti tax at the same time, at least not very successfully. But you are probably right that being openly in favor of tax increases, as Pelosi is, is a loser.