Obama: Congress needs incentives for deficit cuts

AP News
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Posted: May 11, 2011 6:47 PM
Obama: Congress needs incentives for deficit cuts

President Barack Obama said Wednesday that lawmakers may have to rely on automatic spending cuts and tax hikes in order to reach a deal on deficit reduction.

"I think what we're going to end up having to do probably is to set some targets and say, you know, those targets have to be hit if not automatically, some cuts and tax increases start taking place," Obama said in an interview with CBS News. "And that will give incentive for us to negotiate and figure something out."

Both Republicans and Democrats agree on the need for deficit reduction, but are at odds over how to do so. Part of Obama's plan calls for tax increases on wealthy Americans, while Republicans say raising taxes would wreak havoc on the economy.

Obama previously has called for a "debt failsafe" to go into effect if Congress fails to make sure the national debt would be falling by 2014. Republicans have strongly opposed such triggers.