(USA TODAY) -- President Obama will ask Congress for a short-term budget plan to
head off a series of automatic budget cuts scheduled to hit next month.
a March deadline, Obama will call for a small package of spending cuts
and tax revenue increases in remarks at the White House early Tuesday
afternoon, officials said.
The president is scheduled to speak at
1:15 p.m. ET. Two aides confirmed his plans on the condition they not be
named because they did not want to pre-empt his remarks.
remarks, Obama will warn the automatic cuts -- known as the sequester --
will damage defense and domestic programs, and create uncertainty that
will stunt economic growth, aides said.
The short-term solution is
a deficit reduction plan totaling up to $85 billion. Aides said the
president is still looking for a major debt reduction for the long tern
of more than $1 trillion over the next 10 years.
The president is
also expected to renew his call for a "balanced" approach to reducing
the nation's $16.4 trillion debt, a plan that includes more tax revenues
as well as budget cuts.
Obama has said he will not call for
higher income tax rates on the wealthy, which were part of the fiscal
cliff deal reached with Congress last month; instead, he has proposed
closing tax loopholes and ending certain deductions that benefit the
In an interview Sunday with CBS News, Obama said that
even the threat of the sequester has slowed economic growth in recent
"Washington cannot continually operate under a cloud of crisis," Obama said. "We can't afford these self-inflicted wounds."