Obama: Sacrifice Spending, But Not American Priorities

"We will all need to make sacrifices. But we do not have to sacrifice the america I believe in," Obama said. Obama's general outline: First, keep annual domestic spending low, in ways we agreed to last week, which will save a total of $750 billion over 12 years. Second step, find additional savings in the defense budget, including making a fundamental review of the entire military and our missions across the globe. Third step, further reduce health care spending. "Republicans ask seniors and poor families to foot their own health care costs," Obama said, while his plan reduces the deficit by $1.5 trillion overall in health care in the next 20 years, saving the programs that fund health care for the poor and elderly. "I will not tell families of children with disabilities that they have to fend for themselves," Obama said. Fourth step: reduce spending in the tax code. "We cannot afford one trillion dollars in tax cuts for every millionaire and billionaire in our society," Obama said. Obama also called on Congress to review and reform the tax code for both individuals and corporations.