Efforts led by Vice President Joe Biden to reach a deal that would allow the United States to avoid a debt default reached an impasse on Thursday as Republican Representative Eric Cantor said he was pulling out of the discussions, Reuters reported. Cantor said participants in the talks had identified trillions of dollars in potential spending cuts but were deadlocked over tax increases that Democrats want. "Regardless of the progress that has been made, the tax issue must be resolved before discussions can continue," Cantor said in a statement. An aide to Senator Jon Kyl, the other Republican participant, declined to say whether he would take part in the next meeting, scheduled for 2 p.m. EDT (1800 GMT). Negotiators had hoped to reach a budget deal by next week that would give lawmakers the political cover to raise the $14.3 trillion debt ceiling. The Treasury Department has warned that it will run out of money to pay the country's bills if the U.S. Congress does not act by Aug. 2, a prospect that could push the United States back into recession and rattle markets across the globe. -- SPA
