By Keerthi Chandrashekar ( | First Posted: Dec 01, 2012 06:58 AM EST

U.S. President Barack Obama at the Rodon Group, a manufacturer of toys in Hatfield, PA
(Photo : REUTERS/Jason Reed )

Alongside talks of the impending "fiscal cliff," President Obama is now pushing for an Aug. 1 deadline on a plan that intends to help reduce national debt through a series of changes to federal health programs and tax code reform, according to administration officials. 

The deadline is part of a plan that Obama and the White House claim will reduce national borrowing by $4.5 trillion over the next decade. Treasury Secretary Timothy F. Geithner included the plan in opening talks with Republicans on Capitol Hill on Thursday. 

According to officials, there would be $2.50 in spending cuts for every $1 hike in taxes. Around $200 billion of the savings would go towards economy-boosting measures such as increased unemployment aid. 

The White House is hoping to raise around $1 trillion next January after George Bush's tax cuts for the wealthy runs out. An additional $600 billion would come from changes to federal health programs such as Medicare and Medicaid, and another $600 billion through tax code reform. 

Obama and the White House are also proposing a delay on automatic spending cuts through Aug. 1 in order to help ensure the deadline is met. While this would cost around $80 billion, officials hope to make up the loss by hiking taxes and cutting spending in areas they would not specify. 

On Friday, Obama visited a factory in Pennsylvania to gain support for his proposal to raise taxes on the wealthy. 

Tax rates were at the crux of the recent presidential race, as both President Obama and Republican candidate Mitt Romney tried to convince the American public that they would favor the middle class. 

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