Speaker of the US House of Representatives, John Boehner, has pulled the Republican version of a tax bill from the floor ahead of a vote saying it did not have enough support to pass.
The move is a major embarassment for Boehner after 13 fellow Republicans refused to back his "Plan B" tax bill because they oppose tax hikes on even the richest Americans.
Boehner's bill would have limited tax increases to those who earn one million dollars or more a year, while President Obama's bill wants to raise taxes on people who earn more than four hundred thousand dollars.
After Boehner's bill was pulled, the White House said they will continue to work with congress to find a quick bipartisan solution.
Lawmakers in both houses say they will continue to debate the issue before automatic tax hikes and spending cuts kick in on January 1.
Boehner pulls bill from floor (0:56)
Dec. 21 - Leaders in the US House of Representatives pulled their version of a tax bill from the floor due to a lack of support. Julie Noce reports. ( Transcript )