Republicans walk out of debt talks

Republican negotiators have walked out of talks with US Vice-President Joe Biden on how to reduce the country's debt.



The Republicans and Democrats must reach an agreement that will enable Congress to raise the $14.29 trillion debt ceiling before August 2, or the US risks defaulting on its debt.



However, the Republicans are resisting Democrat proposals for tax rises in any deal.



They say such tax increases - amounting to as much as $400 billion on corporations and the wealthy, will stifle economic recovery.



Republican House Majority Leader Eric Cantor, who led the walk-out of the talks, says it’s time for President Obama to speak clearly and resolve the tax issue.



In a statement after the meeting, Biden said a balanced approach was needed with savings made across all areas, from domestic spending to loopholes in the tax code.



He said it’s now up to party leaders to determine the scope of an agreement that can tackle the problem and attract bipartisan support.