The KGB Oracle Forums General Public Discussion (SPECIAL ACCESS) KGB Political Debate Central GOP - the party of the rich

The Republican and Democratic heads of the 12-member committee are now expected to issue a statement later on Monday, probably after the US markets have closed, saying they have been unable to reach a deal.

Disagreements have centred on whether tax increases should form part of the budget reduction measures, with Democrats in favour of such rises but Republicans opposed.

Democratic Senator Patty Murray, one of the committee's co-chairs, told CNN that the Republicans' position on taxes was the sticking point.

The wealthiest Americans, who earn over a million a year have to share too. And that line in the sand, we haven't seen Republicans willing to cross yet," she said.