US Economy - Debt talks: Democrats erupt over Obama surrender to Republicans - by Lisa Mascaro and Christi Parsons

As President Obama pushed hard for a grand deal to reduce the federal deficit, he ignited a furor among congressional Democrats on Thursday by appearing to retreat from his insistence that spending cuts and revenue increases be included in the same package.

The White House briefed Democratic leaders on a possible $3-trillion deficit-reduction deal, the latest in a rapid-fire series of proposals aimed at winning congressional approval for an increase in the nation's $14.3-trillion borrowing limit before Aug. 2. That's when the government is expected to run short of funds and risk defaulting on its debt.

An early version of the plan would lock in cuts in spending and social programs, as Republicans want, but appeared to defer decisions on increasing tax revenues until 2012. Under the proposal, Congress would take up comprehensive tax reform next year. But Democrats want enforceable measures to ensure that Republicans follow through on increasing revenue.

For more: Debt talks: Democrats erupt over latest plan on debt ceiling - latimes.com