Budget and debt talks move to the White House

By the Associated Press | June 27, 2011 | 2:12 AM EDT

FILE - In this June 23, 2011 file photo, President Barack Obama speaks in New York. It might be time for another midnight ride by Paul Revere, this time warning "the creditors are coming." Americans seem not to have awakened to the fast-looming debt crisis that could summon a new recession, imperil their stock market investments and shatter faith in the world's most powerful economy. Those are among the implications, both sudden and long-lasting, expected to unfold if the U.S. defaults on debt payments for the first time in history. (AP Photo/Carolyn Kaster, File)

WASHINGTON (AP) — Efforts to work out a deal for cutting government spending while at the same time raising the debt limit move into a new phase with President Barack Obama meeting at the White House with Senate leaders.

Obama is set to meet Monday morning with the Democratic leader, Sen. Harry Reid, and then in the afternoon with the Republican leader, Sen. Mitch McConnell.

Talks between congressional leaders of the House and the Senate reached an impasse last week over the question of federal revenue. Democrats say they want to close loopholes and scale back tax breaks for big corporations and wealthy taxpayers. Republicans want to focus on cutting spending and have waved off tax increases.

McConnell told ABC's "This Week" on Sunday that proposals seeking more tax revenue won't pass Congress.