President Barack Obama at a town hall meeting.
President Barack Obama at a town hall meeting. - 
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JEREMY HOBSON: Later today, we'll get a long-term deficit reduction plan from President Obama. You'll remember last week we got a long-term plan from the Republican chairman of the House Budget Committee, Paul Ryan. The President's proposal is expected to include cuts to entitlement programs as well as tax increases which were not included in the Republican plan.

Marketplace's Alisa Roth has more.

ALISA ROTH: The talking heads will probably focus on the President's proposal to get rid of the Bush-era tax credits. But the speech will mostly also include a broader overhaul of the tax system, designed to bring in more money. The plan also reportedly includes cuts to programs like Medicare and limits on military spending.

Martin Baily is a senior fellow at the Brookings Institution. He was chair of the Council of Economic Advisors during the Clinton Administration. He says if President Obama really wants to make a dent in the deficit, he's going to have to find other ways to increase revenue, besides just eliminating the Bush-era tax credits.

MARTIN BAILY: He certainly could limit the deductibility of mortgage interest and he could have that phased down gradually over time. But again I think politically that's a challenge, and certainly would be something that would get played up in the next election.

The President has invited some members of the House and Senate to the White House this morning for a preview of his proposals.

Meanwhile, the Republicans have already put out their proposal for long-term deficit reduction. They're planning to bring it for a vote in the House, possibly even this week.

I'm Alisa Roth for Marketplace.