[poispanna]

Reuters: http://www.reuters.com/article/2011/...75M80E20110630

President Barack Obama called on Wednesday for new steps to spur job growth and tax hikes on the rich, hardening a stance that will likely complicate deficit reduction talks with Republicans.

Obama's call came as the International Monetary Fund and the Treasury Department urged Washington to reach a budget deal that would pave the way for Congress to raise the United States' $14.3 trillion borrowing limit by August 2.

Failure to increase the debt ceiling, which caps how much the United States can borrow, would likely trigger a default that could plunge the United States into a new recession and roil global financial markets, the Obama administration and economists warn.

Obama's push for new construction loans and an extension of a payroll tax cut could further alienate Republicans already incensed by Democratic demands for new tax revenue.

Challenging lawmakers to make "substantial progress" by the end of this week or cancel plans for the July 4th holiday weekend, Obama upped pressure on Republicans by tying them to tax breaks for "millionaires and billionaires" while warning of default.