"We need to extend all the tax cuts," Graham told NBC's "Meet the Press." "Now is not the time to raise taxes. (President Barack Obama) has openly said that he wants to increase taxes to 39.6, the top rate, and let some of the Bush (administration) tax cuts expire."
With the midterm elections only a couple of months away, Graham said Democratic control of Congress would be in jeopardy if the elections were held now.
"Yes. I think if the election were held tomorrow it (Democratic control) would be," he said. "There are a couple months to go and at the end of the day I don't know what their agenda is going to be between now and November. But what they've done in the past no one seems to like.
"The healthcare bill is not being talked about by any Democrat," he added. "The stimulus bill has been an absolute flop. So I don't know what they do between now and November other than run against us."
Also appearing on the program was David Plouffe, author of a new book, "The Audacity to Win," and the manager of Obama's 2008 campaign.
On tax cuts, Plouffe said, "If we're going borrow money from the Chinese to give further tax cuts, it ought not go to millionaires. We ought to do more for small businesses in tax cuts. So what the president is proposing is permanent extensions of tax cuts for the middle class. We have a small business plan right now in front of the United States Senate that would provide huge tax relief, incentive for lending and incentive for expansion. That's what we ought to be doing."