Congressional Democrats and Republicans appeared far apart Sunday on a deal to avert $85 billion in federal spending reductions next month, with a top House Republican saying the cuts appear “inevitable.”

The automatic cuts, known as sequester, kick in March 1 because the parties have failed to agree on a less-drastic plan to cut the federal budget and deficit.

House Minority Leader Nancy Pelosi told “Fox News Sunday” that Democrats remain steadfast about tax increases being part of the deal but remain open to spending cuts.

“What we do need is more revenue and new cuts,” the California congresswoman said.

Pelosi said Democrats were “not talking about raising taxes,” but want to close tax loopholes, including those for U.S. oil companies.

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