The president's plan includes $1.5 trillion in new revenue generated largely by higher taxes on the wealthiest Americans, a proposal strongly opposed by GOP leaders who insist that any tax increase will undermine an already shaky economy.
The measure -- which would add to nearly $1 trillion in savings signed into law under the debt-ceiling deal enacted in August -- does not include changes to Social Security. It would increase Medicare premiums for individuals with higher incomes starting in 2017 -- the year Obama leaves office if he wins a second term.
"We are not going to have a one-sided deal that hurts the folks that are most vulnerable," Obama said at the White House, offering a defense of tax hikes on the highest earners.
Spending cuts alone "will not solve our fiscal problems. We can't just cut our way out of this hole," he added. "It's going to take a balanced approach. If we're going to make spending cuts -- many of which we wouldn't make if we weren't facing such large budget deficits -- then it's only right that we ask everyone to pay their fair share."
