Sargent passes along what he is hearing from a “White House ally”:

The idea is that it’s better to lock in a deal on rates now, at, say, $450,000, extend unemployment benefits, and pocket those gains and continue the fight next year. Raising the income threshold is obviously not desirable, but Dems will have broken the decades-long GOP opposition to raising tax rates on the rich, pocketed hundreds of billions in revenues, made the tax code more progressive, and extended unemployment benefits — all without agreeing to any spending cuts yet.

In so doing, will Dems squander their leverage next year? I and others have argued that they would. But the alternate interpretation is that Republicans, even next year, after a cliff dive, won’t have their options as limited as we might hope — they might not have to support the $250,000 threshold, after all. And Dems may still retain leverage in another way, even with the rates locked in by a deal this year. Republicans will use the debt ceiling to extract spending cuts, but Dems might counter by demanding more revenues via tax reform that closes loopholes and deductions for the wealthy.

That last point was presumably what the president was referring to in his speech when he said this deal on taxes does not mean that the only thing left is cutting spending. He means tax reform that will make the system more progressive.