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Here is the reason Republicans are being so intransigent in negotiating the debt ceiling: http://www.atr.org/userfiles/Senate%20Pledge(2).pdf
Nearly every single Republican in the House and Senate has signed a pledge (authored by Grover Norquist) which forbids them from raising taxes EVER. Furthermore, they cannot even get rid of LOOPHOLES (corporate jets, oil subsidies, etc.) unless they simultaneously lower the tax rate. This is why the Republican (Paul Ryan) budget guts Medicare. Because of this plan, they cannot raise taxes to pay for wars, social security, Medicare, Medicaid, etc. Nothing.
This is why the Ryan plan does not balance the budget until 2040 and would leave a $338 billion deficit in 10 years. If the President were to sign the Republican's budget, they would still have to raise the debt ceiling!
Bottom line: They don't care about debt or deficit reduction. If they did, they would certainly take the $4 trillion deficit reduction deal offered by the President. But that would mean they would have to get rid of loopholes. So they say: No deal.
Republicans say: Cut Medicare/Medicaid? Yes. Cut corporate loopholes: No.
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