Obama: Congress Needs Incentives For Deficit Cuts

WASHINGTON (AP) - President Barack Obama says a compromise plan for reducing the nation's deficit may depend on automatic spending cuts and tax increases.

In an interview with CBS News, Obama says using automatic triggers if lawmakers fail to meet deficit reduction targets would give Congress incentive to negotiate.

Both Republicans and Democrats agree on the need for deficit reduction, but are at odds over how to do so. Part of Obama's plan calls for tax increases on wealthy Americans, while Republicans say raising taxes would wreak havoc on the economy.

Obama previously has called for a "debt failsafe" to go into effect if Congress fails to make sure the national debt would be falling by 2014. Republicans have strongly opposed such triggers.