NEW YORK ( TheStreet) -- President Barack Obama unveiled his deficit reduction plan Monday, putting forth a package that would lower the tax burden for small business owners and middle-class workers while raising taxes paid by the nation's millionaire and billionaires.

Including the impact of American Jobs Act and $1 trillion in spending cuts provided for in previous legislation to raise the debt ceiling, Obama said his plan would lower deliver more than $4 trillion in savings over the next decade.

He argued the proposal would cut what the country couldn't afford and invest in what mattered, areas like education, scientific research and road infrastructure.
President Barack Obama

The president stressed that revenue was critical for deficit reduction, and that spending cuts alone would not be sufficient.

Obama said that his plan would cut two dollars in spending for every dollar in new revenue, reform agricultural subsidies, make modest adjustments to federal retirement programs, ask financial firms to repay the American people for the money the government spent on the federal bailout and continue to reduce the cost of wars in Iraq and Afghanistan.

Obama said that he would consider "structural reforms to reduce the cost of health care and programs like Medicare and Medicaid."

He hammered away at the need to raise tax rates for the wealthy in order to make the certain that everyone was paying their fair share.

"We can't afford these special lower rates for the wealthy...It's only right that we ask everyone to pay their fair share," Obama said. "I'm ready to work with Democrats and Republicans to reform our entire tax code."

Republican presidential hopefuls took the opportunity to criticize Obama's deficit speech on Monday.

"This is yet another indication that President Obama has no clue how to bring our economy back," former Massachusetts Gov. Mitt Romney said. "Higher taxes mean fewer jobs - it's that simple."

"For two and a half years Obama's been peddling a version of the Buffett Tax Hike as a key pillar of his failed attempt to tax and spend and regulate this country to prosperity," former Utah Gov. Jon Huntsman, Jr. said in a statement. "President Obama continues to demonstrate that he has no new ideas on how to create American jobs."

Obama referenced a popular op-ed by legendary investor Warren Buffett when he said that people like Buffett's secretary shouldn't bear a larger burden in taxes than people like Buffett.

"All I'm saying is that those who have done well, including me, should pay our fair share in taxes," Obama said. "We are not going to have a one-sided deal that hurts the folks who are most vulnerable."

-- Written by Joe Deaux in New York.

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