In a speech from the Rose Garden, the president suggested a tax hike on America's highest earners coupled with spending cuts
President Obama on Monday called for a combination of spending cuts and $1.5 trillion in new tax revenue increases that would save $3 trillion over the next decade. And he will warn Congress that if they do not give him a "balanced" package that includes tax increases for the wealthiest Americans, he will use his veto and make them start again.
"We can't just cut our way out of this hole," Obama said.
Text of Obama's Speech: 'Not Class Warfare, It's Math'
No Social Security Plan for Supercommittee From White House
Obama Allies: Time to Wake Up
The president made his pitch in the Rose Garden, and the White House promised to provide details throughout the day. The outlines of the package were disclosed on Sunday night by senior administration officials who asked not to be named. They said deficit reductions will total $4.4 trillion when new cuts are coupled with the $1.2 trillion in discretionary spending reductions included in the bill signed into law by the president last month after the debate over raising the debt ceiling.
The additional deficit reduction, said the officials, would come from $1.5 trillion in tax reform; $580 billion in "cuts and reforms across all mandatory programs;" $430 billion from interest savings; and $1.1 trillion from the drawdown of troops in Afghanistan, the changed mission in Iraq, and caps to limit spending on future overseas contingency operations.