Washington: President Barack Obama said cutting the federal budget deficit by trillions of dollars over the next decade is going to require "tough decisions" and cooperation between Democrats and Republicans.
In his weekly radio and internet address, the president said that negotiators should focus on tax loopholes that benefit few people and that nothing can be off limits.
"That means looking at every programme and tax break in the budget," he said. "We'll have to make tough decisions and scale back worthy programmes."
The administration is negotiating with Congress on reducing the long-term budget deficit as part of a plan to raise the nation's $14.3 trillion (Dh52.5 trillion) debt limit before August 2, the date the Treasury has projected that US borrowing authority under the current ceiling will expire.
Democrats and Republicans are at an impasse over how to proceed, with Republicans demanding large spending cuts and no tax increases and Democrats saying that higher tax revenue must be part of a "balanced" plan.
"The president and Democrats in Congress must recognise that their game plan is not working," Indiana senator Dan Coats said in the Republican address.
"It's time to acknowledge that more government and higher taxes is not the answer to our problem."
Obama has advocated higher taxes for "millionaires and billionaires" and an end to tax breaks related to hedge funds, corporate jet ownership and oil and gas exploration, while maintaining spending in "education, research and technology".
"We can live within our means while still investing in our future," he said.
Example
Coats said the US should follow the example of his home state, Indiana, which erased a $200 million budget deficit without raising taxes.
"The spend-less, borrow-less and tax-less model in Indiana has resulted in balanced budgets, job creation and a triple-A credit rating," he said. "In contrast, the spend-more, borrow-more and tax-more approach of the president has resulted in fewer jobs, higher debt and a threatened downgrade from credit agencies."
