Obama Sees Progress as Debt Talks Resume

After inviting Congressional leaders to a Thursday meeting at the White House, President Barack Obama heralded the progress Democrats and Republicans had made towards achieving a deal to raise the debt ceiling.

Obama said he had discussed possible deficit reduction packages with leaders of both parties over the Fourth of July weekend, and suggested that a deal could be forthcoming if both sides leave their ultimatums at the door.

This will require both parties to get out of our comfort zones, he said. I'm ready to do that. I believe there are enough people in both parties who are ready to do that.

The talks are aimed at constructing a deficit reduction package substantial enough to win Republican support for raising the nation's debt limit. Democrats and Republicans are divided over how revenue will play into a deal -- Republicans have been adamantly opposed to any source of new revenue, while Democrats have called for changes to the tax code that will help replenish the government's coffers amidst deep budget cuts.

There are signs of a thaw there as well. The White House has signaled there could be enough votes to eliminate some of the tax breaks Democrats are targeting, according to Reuter.