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U.S. Republicans walked out of budget talks on Thursday, setting up a showdown between President Barack Obama and House Speaker John Boehner over how to extend U.S. borrowing and avoid a looming debt default.
“Let me be clear: Tax hikes are off the table,” said the Republican leader of the House, Speaker John Boehner.
Republicans quit unexpectedly after saying the group had reached an impasse over tax increases sought by Democrats.
“It is time for the president to speak clearly and resolve the tax issue,” said House Majority Leader Eric Cantor, who had represented House Republicans in the talks. Republican Senator Jon Kyl also pulled out.
An agreement would give lawmakers political cover to raise the $14.3 trillion debt ceiling before Aug. 2, when the Treasury Department has said it will run out of money to pay the country’s bills.
Default could occur if Congress does not act by then, which could push the United States back into recession and send markets plunging around the globe.










