Obama summons pols in debt-limit deadlock

WASHINGTON -- Struggling to break a deadlock, President Barack Obama took control Friday of national debt-limit negotiations with Republicans and Democrats. With the White House warning the nation's economic stability is at stake, it's one of the most severe tests yet of his presidency.

The key disagreement is over taxes. Democrats, including Obama, say a major deficit-reduction agreement must include tax increases or end tax breaks for big companies and wealthy individuals. Republicans are demanding huge cuts in government spending and insisting on no tax increases.

Absent an agreement that cuts long-term deficits, Republicans say they will not vote to increase the nation's borrowing, which will exceed its $14.3 trillion limit on Aug. 2. The administration has warned that if Congress does not raise the debt ceiling, it could mean the first U.S. financial default in history and send economic shockwaves around the world.

Discussions led by Vice President Joe Biden designed to trim about $2 trillion from long-term deficits stalled this week, leading Obama to summon the top Senate leaders to the White House. Obama plans to meet Monday with Senate Majority Leader Harry Reid (D-Nev.), and Senate Republican leader Mitch McConnell of Kentucky in the evening. McConnell and House Speaker John Boehner have repeatedly said no deal can include tax increases.

Amid an economic slowdown, high unemployment and a looming deadline for action, the talks will challenge Obama's ability to forge a compromise.

Both sides repeated their negotiating positions on Friday.

"The president is willing to make tough choices, but he cannot ask the middle class and seniors to bear all the burden for deficit reduction and to sacrifice while millionaires and billionaires and special interests get off the hook," White House spokesman Jay Carney said.

Boehner warned the president that including any tax increase would doom a vote on raising the debt ceiling.