Obama, Boehner Say No Debt Deal

Rex Features / AP Photo

U.S. House Majority Leader Eric Cantor (Republican of Virginia), U.S. House Minority Leader Nancy Pelosi (Democrat of California), Speaker of the U.S. House John Boehner (Republican of Ohio) and President Obama President Obama meets with Congressional leadership, Washington D.C, America - 07 Jul 2011 The Obama administration and congressional leaders are seeking an accord to lower the deficit during the next 10 to 12 years to pave the way for a vote to increase the $14.3 trillion debt limit, and the tax issue looms as the major obstacle to a deal.

White House spokesman Jay Carney denied reports that President Obama was nearing agreement with Republican leaders on a $3 trillion deal to raise the debt ceiling. “There is no deal. We are not close to a deal,” said Carney; John Boehner also tweeted that reports of a deal were "false." But sources still tell Politico and The New York Times that the deal is on the table, and that Vice President Joe Biden called congressional Democrats to tell them the two sides were moving toward a large deal. In addition to cutting spending, the arrangement would make changes to entitlement programs and pledge to reform the tax code later down the road.