Tax Dispute Stalls Debt Talks

The drive for a major deficit-reduction deal entered a new phase Thursday when Republican negotiators pulled out of bipartisan talks, leaving it to President Barack Obama and House Speaker John Boehner to resolve the toughest issues.
House Majority Leader Eric Cantor (R., Va.) said he was backing out of the talks for now because the group had reached an impasse over the question of whether tax increases should be included in the deal.

..The only other Republican in the group, Sen. Jon Kyl (R., Ariz.), soon followed suit, agreeing that only the highest levels of leadership could break the logjam between Democrats’ demand that the budget deal include tax increases and Republicans’ adamant opposition to that demand.
The talks were aimed at striking a budget deal in hopes of easing the way for Congress to raise the government’s $14.29 trillion debt limit. Treasury Department officials say that without additional borrowing authority, the government will run out of cash to pay its bills by Aug. 2.

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