Sen. Baucus: Deficit Negotiations Not Over

WASHINGTON (Reuters) - U.S. Senator Max Baucus, a member of Vice President Joe Biden's deficit-reduction working group, Thursday said new revenues had to be part of a balanced deal to reduce spending and increase the country's borrowing authority.

Baucus, a Democrat, made the remarks after House Majority Leader Eric Cantor pulled out of the talks, along with his fellow Republican Senator Jon Kyl. House Speaker John Boehner, also a Republican, insisted tax increases must be off the table because they can't pass the House of Representatives.

But Baucus added: "This is not the end of the matter."