Sen. Joe Lieberman (I-Conn.) said on Sunday that he believes Democrats will compromise with Republicans and extend tax cuts for the wealthy.

“My guess is that we will extend the so-called middle class tax cuts permanently, so to speak, and we will agree to extend the tax cuts for high income earners for at least a year or two," Lieberman told CNN's Candy Crowley on "State of the Union."

"I favor that. It’s easy enough to say that people who make a lot of money don’ty deserve a tax cut now, but the truth is if you have more money, you spend more money, you invest more money [and] that’s what we need to happen now to grow jobs and our economy."

Lieberman said that if the tax cuts aren't extended, the country could see another sharp fall into economic hardship.

“If we don’t do anything, everybody’s taxes go up in January," said Lieberman. "It is a possibility and to me it’s the surest way to send America back into a second dip of a recession. So we’ve got to find a way to break through this partisan gridlock and come to a compromise"