President Obama's debt reduction proposal struck down by House Speak John Boehner

WASHINGTON - Talks between President Obama and congressional leaders were deadlocked Sunday after GOP leaders said the President's hopes for an ambitious debt reduction plan were dead on arrival.

Obama's push for a $4 trillion package was shot down by House Speak John Boehner's waing that only a smaller package - which carries no tax hikes - stands a chance of passing.

Obama isn't one to "walk away from a tough fight. This is a very tough political fight, no question about it," Obama's Chief of Staff Bill Daley told ABC's "This Week" anchor Chistiane Amanpour. "But he didn't come to this town to do little things. He came to do big things."

Treasury Secretary Timothy Geithner echoed the stance, saying Obama wants a deal that cuts the deficit though a combination of spending cuts, changes to entitlements like Social Security and Medicare and tax increases.

He reiterated that the Aug. 2 deadline to raise the $14.3 trillion debt is real, not political posturing. Failing to meet it so would be "catastrophic," Geithner said on NBC's "Meet the Press."