Obama Says Differences May Be Too Wide for Budget Deal

Sticking to revenue increases

President Obama, in an interview with ABC News released on Wednesday, said that the differences between Democrats and Republicans on spending and taxes may be too great to reach an agreement on the budget.

"Right now, what I'm trying to do is create an atmosphere where Democrats and Republicans can go ahead, get together and try to get something done," Mr. Obama said. "But ultimately it may be that the differences are just too wide."

If the Republicans won't consider increasing revenues, or will only trade revenues for cuts to Medicare, Medicaid and Social Security, "then we probably are not going to be able to get a deal," he said.