Debt Deal at an Impass.

Well, August 2 is is “debt limit” deadline is less than two weeks away. Talks have broken off after the Senate voted down the Houses Cut, Cap and  Balance  bill That piece of legislation set up the ground work  a constitutional amendment requiring federal government balance it’s budget which more than 30 states have in law. From ABC News:

Talks between House Speaker John Boehner and President Obama to raise the debt ceiling in conjunction with sweeping spending cuts and tax and entitlement reform have broken down. There will be no “grand bargain” to deal with the debt crisis and raise the debt ceiling.

Boehner’s decision to abandon negotiations with President Obama puts an end to a deal that would have cut spending by up to $3.5 trillion over the next 10 years and increased tax revenues by close to a trillion dollars. But the $14.3 trillion debt ceiling must be raised by Aug. 2nd to avoid a government default.

“We have now run out of time,” a visibly angry Obama declared at a hastily arranged press conference in the White House briefing room.

The President  orders House Speaker John  Boehner, (R)  Ohio and Senate Majority leader Harry Reid,(D) Nevada to the White House on Saturday.

“I expect them to have an answer as to how they will get this thing done over the next week,” Obama said. Both sides agree that a proposal should be hammered out over the weekend.

Meanwhile,  Speaker Boehner  also spoke to the media about the defeat Cut,Cap and Balance bill.:

Boehner sent a letter to his Republican colleagues explaining his decision to pull out of talks for a “grand bargain.” Here are some highlights:

“It has become evident that the White House is not serious about ending the spending binge that is destroying jobs and endangering our children’s future,” he wrote, adding, “A deal was never reached, and was never really close.

“The president is emphatic that taxes have to be raised. … The president is emphatic that we cannot make fundamental changes to our entitlement programs,” Boehner wrote.

“For these reasons, I have decided to end discussions with the White House and begin conversations with the leaders in the Senate in an effort to find a path forward.”

Boehner held his own press conference after 7 p.m. Friday night and said the talks broke down because “The White House moved the goal posts.”

Specifically, he said the two sides had agreed on an unspecified amount of revenue to be included in deficit reduction, achieved by broadening the number of Americans who pay taxes and lowering general tax rates. But he said President Obama on Thursday demanded another $400 billion in revenue, which Boehner said “was going to be nothing more than a tax hike on the American people.

ABC News has more  including video.

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