Washington (CNN) -- President Barack Obama said Wednesday that both Republicans and Democrats need to be willing to "take on their sacred cows and do tough things" in order to reach an agreement on raising Washington's debt ceiling and getting federal deficits under control.

The president criticized Republicans for refusing to agree to an end to tax breaks for "millionaires and billionaires," oil companies, hedge fund managers, and owners of corporate jets. The wealthy, he said, can afford to pay higher taxes as part of a larger budget deal.