The President's plan on to close tax loopholes is getting a lukewarm response from Congress.

The President's proposal would consider Americans who use so-called tax havens like the Bahamas or Cayman Islands guilty of violating U.S. tax laws.

"It's a tax code full of corporate loopholes that makes it perfectly legal for companies to avoid paying their fair share," Obama said.

Treasury Secretary Timothy Geithner said, "the President's budget will add up to 800 full-time IRS employees devoted to detecting and bringing to justice those who unlawfully hide assets and income."

But lawmakers on both sides of the aisle aren't too sure about the plan.

The Democratic chairman of the Senate Finance Committee says the proposal needs further study, although similar ideas have been around since President Kennedy's administration.