If Republicans ever get organized enough to at least pretend at coherence, this is the choice they might give Obama, according to analysis by Robin Harding at The Financial Times:
Republicans in Congress do not seem overly concerned, preferring to use the sequestration as leverage to seek cuts in long-term entitlement spending. Mr Obama will have to decide whether he wants to win a once-in-a-generation political battle about the size of government in the US – which will mean holding out for higher tax revenues even as the public sector falls apart around him – or else look to the short and medium-term health of the economy by cutting a deal that delivers relief from the sequestration.