Obama's Deficit Plan: Raise Taxes on Rich

President Obama will weigh in on the deficit in a speech this Wednesday, calling for cuts to entitlement programs as well as a tax increase for the wealthy. Alongside calls for reductions in Medicare and Medicaid and a new plan for Social Security, the president will propose raising taxes on those making more than $250,000 a year, the Wall Street Journal reports.

“Every corner of the federal government has to be looked at here,” said a top Obama aide, and “revenues” are no exception. The president will also call for altering aspects of the tax code that he believes work in the wealthy's favor. But GOP Rep. Eric Cantor says the 2010 elections and tax deal “settled” the tax issue. “It was then that we all agreed it wouldn't be a good thing if we want to see job creation for taxes to go up.” Click for more comments from Cantor, who said Obama had to be dragged "kicking and screaming to the table to cut spending." (More President Obama stories.)