"There should be nothing controversial about this piece of legislation," the president said. "Everything in here is the kind of proposal that's been supported by both Democrats and Republicans including many who sit here tonight. And everything in this bill will be paid for. Everything," Obama said.

Obama said he will ask Congress to increase the $1.5 trillion target in deficit reduction being pursued by a special joint congressional committee to cover the cost of the plan and propose his own deficit-reduction plan on September 19 that would reform entitlement programs such as Medicare while changing the tax system to end loopholes, lower the corporate tax rate and increase taxes for the wealthy.

Obama, in essence, resurrected his push for a so-called "grand bargain" a comprehensive deficit reduction package that includes all the drivers of government spending and deficits, including those traditionally favored and protected by both parties.