The proposal would replace the automatic budget cuts that went into effect last month.
Close to $600 billion of the $1.8 trillion would come from new revenue -- specifically the cap on itemized deductions and the Buffett Rule.
The other $1.2 trillion would come from spending cuts: $200 billion from defense and nondefense programs on the discretionary side of the budget. Another $400 billion from Medicare and other federal health programs in ways that largely affect hospitals and drug companies. And $600 billion in cuts affecting non-health spending on things like agricultural subsidies and unemployment insurance.
The administration has made clear the president's deficit-reduction proposals are not a starting point for upcoming discussions. "I've already met Republicans more than halfway," Obama said Wednesday morning.
And officials made it clear there will be no future debt-reduction deal unless new revenue is included.
House Speaker John Boehner on Wednesday morning gave the president credit for including "some incremental entitlement reforms ... . But I would hope that he would not hold hostage these modest reforms for his demand for bigger tax hikes. Why don't we do what we can agree to do?"
Even if Republicans eventually agree to a revenue component, it is unlikely the president's proposals would be adopted wholesale. But if they were, his budget would bring total deficit reduction during his tenure to $4.3 trillion.