Obama Debt Reduction Plan To Be Outlined In Wednesday Speech

President Barack Obama, jumping into a debt-reduction debate that will help define the rest of his term, will outline his ideas Wednesday for curbing the costs of Medicare and Medicaid and taking other steps to turn around the nation’s spending habits. Ahead of his effort, House Republicans warned they would not consider any plan that includes tax increases.

Obama will give congressional leaders of both parties a preview of his speech, scheduled for delivery at 1:30 p.m. EDT Wednesday, during a private meeting at the White House on Wednesday morning. The White House has refused to discuss details of the speech, but Obama is expected to call for a “balanced” approach of shared burdens that takes on entitlement programs, defense spending and taxes.

The president’s move also is intended to serve as a counter to a major Republican proposal from Rep. Paul Ryan of Wisconsin. Ryan’s plan would seek to cut more than $5 trillion in spending over the next decade, built around a drastic reshaping of Medicare and other federal safety-net entitlement programs, and would lower the tax rate for the nation’s top payers.

“The point is that balance is essential,” Obama spokesman Jay Carney said. “What is not acceptable in the president’s view – and we believe in the American people’s view – is a plan that achieves serious deficit reduction only by asking for sacrifice from the middle class, seniors, the disabled and the poor, and while providing substantial tax cuts to the very well off.”

In a divided Washington, where a budget standoff between Obama and House Republicans nearly led to a government shutdown last week, the broader debt debate now begins in earnest. It is expected to shape both the course of legislation and a presidential campaign that already has Obama seeking a second term.

Obama has renewed his call to end the Bush-era tax cuts for households earning more than $250,000 a year or individuals earning above $200,000. The White House has insisted that every aspect of the government must be considered as part of a serious discussion on debt, including revenues, which tends to be Washington-speak for taxes.