Are taxes off the table for Republicans?

I didn't get a chance to read Michael Grunwald's dissertation on Republican woes when it came out yesterday, but skimming it just now this passage jumped out:
The most urgent question is the meaning of economic conservatism. Representative Patrick McHenry of North Carolina, a conservative who keeps a bust of Reagan on his desk, surprised me by declaring that the Reagan era is over. "Marginal tax rates are the lowest they've been in generations, and all we can talk about is tax cuts," he said. "The people's desires have changed, but we're still stuck in our old issue set." [emphasis added]

That's really a stunning admission from McHenry, who's just about as conservative as they get. Without a small government, less taxes agenda, what exactly do Republicans have to counter Obama? (Meanwhile, John Amato at Crooks and Liars asks how long it will be before McHenry apologizes to Rush Limbaugh. "I give it one day," he concludes.)