Tuesday, June 28, 2011 - 8:02am

As President Obama heads to Iowa to talk about jobs, the government remains deadlocked on how to reign in spending.

Washington's deadlock over cutting the deficit can be summed up in one word: taxes.

White House Press Secretary Jay Carney said, "That has to be on the table."

But Republicans flatly refuse to consider raising taxes to bring down the country's deficit.

Senate Minority Leader Mitch McConnell said, "It's time Washington take the hit, not the taxpayers."

By "taxpayers,” the White House says they're talking about higher taxes for the rich and big businesses, like the oil companies that are making record profits, not the middle class.

Top Republican Presidential Candidate Mitt Romney told business leaders he'd do just the opposite.

"I'd take that corporate tax rate down, at least from 35 to 25 percent," said Romney.

Democrats insist the focus should be on jobs.

Senate Majority Leader Harry Reid said. "We will never balance the budget with 14 million people out of work."

After an hour meeting with the Senate's top Republican last night, the White House is still confident they can cut a deal to lower the deficit.

"We believe it's possible, and we believe that we can do it," said Carney.

Without it, Republicans won't allow America to borrow more, and the Obama Administration has said we will default on our bills in August.

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