GOP will compromise on debt limit, Boehner predicts

WASHINGTON (AP)

House Speaker John Boehner predicted Thursday that a majority of House Republicans will end up supporting some kind of compromise to avoid a government default. Democrats insisted that higher tax revenue be part of a deal.

White House budget chief Jacob Lew told reporters at the Capitol that "I'm unaware of a deal" between President Barack Obama and congressional Republicans and he repeated that "we've made clear revenues have to be included."

All sides pushed against media reports that Obama and House Speaker John Boehner, R-Ohio, were near an agreement on a grand bargain trading $3 trillion or so in spending cuts and a promise of $1 trillion in tax revenues through a later overhaul of the tax code as part of a deal to extend the government's borrowing authority.

"We're not close to a deal," White House spokesman Jay Carney said.

"While we are keeping the lines of communication open, there is no `deal' and no progress to report," Boehner spokesman Michael Steel said.

What seems clear is that the White House and Boehner continue to negotiate in hopes of a large deficit-cutting package as an Aug. 2 deadline looms on extending the debt limit.