(Reuters) – The Obama administration said on Tuesday that budget negotiators in Congress would probably fail to strike a far-reaching deal unless Republicans agree to raise revenues and overhaul the tax code.

A 29-member congressional committee is trying to set spending levels for the fiscal year that began last month, and many lawmakers want to scrap large spending cuts that started in March.

The discussions, however, are hung up on differences regarding America’s programs for elderly health care and its Social Security pension system, which many economists warn cannot be funded over the long term under current tax policies.  Read more