President Barack Obama says he won't accept a short-term solution for raising the nation's debt ceiling.
There are just 27 days to go before the Aug. 2 deadline.
The president is prodding Congress to reach a deal soon. However, the two sides can't reach an agreement on taxes.
Obama says he is opposed to a stop-gap, short-term deal that just raises the nation's debt ceiling.
"I've heard that there may be some in Congress who want to do just enough to make sure that America avoids defaulting on our debt in the short term. But then wants to kick the can down the road when it comes to solving the larger problems of our deficit. I don't share that view," he said.
The president has invited leaders from both parties to the White House on Thursday to work toward a final agreement.
"My hope is that everyone will leave ultimatums at the door (and) do what's best for the economy," Obama said.
Some say if they fail to raise the debt ceiling, the U.S. government could default on its obligations. The limit currently stands at $14.3 trillion.
Fiscally conservative lawmakers are demanding deep cuts in the federal debt before voting to raise the ceiling. Democrats want tax hikes to go along with budget cuts.
"The time is here for my Republican colleagues to put politics aside. Simply put, we are out of time," said Senate Majority Leader Harry Reid, D-Nev.
The White House is seeking cuts in the range of $2.4 trillion, including billions of dollars in cuts to Medicare and Medicaid. Plus, the administration wants more than $400 billion in tax increases over the next decade.
The president says any deal must include new tax revenue.
"The tax cuts I'm proposing we get rid of are tax breaks for millionaires and billionaires," he said.
Congressional Republicans have refused to budge on raising taxes as a way to reduce the deficit.
"Washington needs to find a way to spend less. Taxing more is their easy way out," noted Senate Minority Leader Mitch McConnell, R-Ky.
Meanwhile, the White Houses warned that if the government's debt limit isn't reached by Aug. 2, the U.S. will face its first ever default -- something that could shake economic markets worldwide.
President Obama will answer questions about the economy and jobs during a Twitter town hall meeting on Wednesday. The questions for the president will be selected by Twitter.
Seton Motley, a consultant and the founder and president of Less Government, discussed Obama's strategy in the final weeks to the debt ceiling deadline, what will happen if the deadline passes without a deal, and if the Democrats will back down on their demand for new taxes on the CBN News Channel's Morning News, July 6.