Less than four weeks remain until the Aug. 2 deadline to increase the government's power to borrow money, as lawmakers continue to hammer out a deal.
President Obama will meet with the leaders from both parties on Thursday to resume talks on cutting the massive federal deficit.
Democrats want new taxes, while Republicans want spending cuts but no new taxes. If they fail to raise the debt limit, the U.S. government could default on its obligations.
"The debt ceiling should not be something that is used as a gun against the heads of the American people to extract tax breaks for corporate jet owners or oil and gas companies that are making billions of dollars," Obama said during a town hall that featured questions posed through the online social network Twitter.
Republicans say they are willing to consider closing tax loopholes for businesses to bring in more money.
House Majority Leader Eric Cantor, R-Va., said those measures should be coupled with tax cuts.
"If the president wants to talk loopholes, we'll be glad to talk loopholes," he said.
He added that any revenues raised from closing loopholes "should be coupled with offsetting tax cuts somewhere else."
In an interview Thursday with NBC's "Today," Cantor said that any deal to avert a government default must include "reforms to the system" to show that Washington can manage the country's finances.
Twitter Town Hall
In the president's Twitter Town Hall on Wednesday, Obama spoke about the ongoing deficit negotiations. He made it clear that he wants more than a short-term solution.
"We still hope its possible to have a big comprehensive proposal here that, in a very serious way, addresses this enormous debt problem that we have," Obama said in response to a question on the budget talks.
The president also answered questions on issues from taxes to the space program. He also answered a question from House Speaker John Boehner, R-Ohio, about job creation.