Obama, Boehner -- Deal? No deal?

Obama administration has informed Democratic Congressional leaders that President Obama and Speaker John A. Boehner were starting to close in on a major budget deal that would enact substantial spending cuts and seek future revenues through a tax overhaul, Congressional officials said Thursday.

With the government staring at a potential default in less than two weeks, the officials said the administration on Wednesday night notified top members of Congress that an agreement between the president and Mr. Boehner could be imminent. The Congressional leaders, whose help Mr. Obama would need to bring a compromise forward, were told that the new revenue tied to the looming agreement to increase the debt limit by Aug. 2 would be produced in 2012 through a tax code rewrite that would lower individual and corporate rates, close loopholes, end tax breaks and make other adjustments to produce revenue gains.

Officials knowledgeable about the conversations between the administration and Congressional leaders said the details of the potential package remained unknown but they presumed it would include cuts and adjustments in most federal programs, including Medicare.

However, officials on all sides of the tense negotiations warned that no firm deal was in hand yet, and tried to play down the progress — if only to stave off attempts to block it or influence its shape by hardliners on both sides of the debate on taxes and spending.

“While we are keeping the lines of communication open, there is no ‘deal’ and no progress to report,” said Kevin Smith, a spokesman for Mr. Boehner.

The White House denied that any deal is imminent. Jay Carney, the White House press secretary, said that "there is no deal. We are not close to a deal.

Carney also said there are no meetings scheduled between Obama and any other congressional leaders, but that could change.

"As you know,"' Carney said, "this is a fluid situation."

The Times is reporting that "the Obama administration has informed Democratic Congressional leaders that President Obama and Speaker John A. Boehner were starting to close in on a major budget deal that would enact substantial spending cuts and seek future revenues through a tax overhaul, Congressional officials said Thursday."

In his tweet, Boehner urged the Senate to sign off on the House Republican plan known as "Cut, Cap, and Balance."

That is not expected to happen, as the Democrats who control the Senate say the House plan cuts too much from middle class programs and does not include new tax revenues. They also oppose the bill's proposed balanced budget amendment to the U.S. Constitution.

Obama met late Wednesday with Boehner and House Majority Leader Eric Cantor, R-Va.; none of the parties commented afterward.

All sides said they are continuing to talk.

"While we are keeping the lines of communication open, there is no 'deal' and no progress to report," said Boehner spokesman Brendan Buck. "We are still focused on the 'Cut, Cap, and Balance' bill that passed the House with bipartisan support, and hope the Senate will take it up as soon as possible.