In a speech at George Washington University, the president proposed reductions in the growth of Medicare spending, cuts in defense and an overhaul of the tax system to eliminate many loopholes enjoyed by individuals and corporations.
"I say it's time when the tax burden on the wealthy is at its lowest level in nearly half a century, the most fortunate among us can afford to pay a little more. I don't need another tax cut," Obama said.
The president said the reforms to Medicare and Medicaid will reduce waste, increase accountability, but not shift the cost of health care to the growing number of Medicare recipients or those with disabilities.
The Republican plan cuts about $5.8 trillion in spending over the next decade, but the White House says the plan unfairly singles out middle-class taxpayers, older adults and the poor.
Even before Obama delivered his speech, Republicans were pushing back. They called ending tax cuts for the wealthy a tax increase. They said the president's proposal was effectively a re-election speech.
"If we're going to resolve our differences and do something meaningful, raising taxes will not be part of that," House Speaker John Boehner said.
The president would reduce costs for Medicare and Medicaid, but not shift the burden to recipients. He proposed reducing defense spending by savings in current and future spending.
"To meet our fiscal challenge we will need to make reforms, we will all need to make sacrifices, but we do not have to sacrifice the America we believe in, as long as I'm president we won't," he said.
The Associated Press contributed to this story.
