President Obama says any agreement to reduce the nation’s deficit is going to require “tough decisions,” including decisions on what he called “spending in the tax code” by eliminating some tax benefits for the wealthy.

The president called reducing the deficit one of the most important and urgent things the U.S. government can do for the economy.

He said he believes Republicans and Democrats can bridge their differences and reach a deal that will require the government to live within its means.

He urged lawmakers to “seize this moment and seize it soon,” saying that nobody wants to put the creditworthiness of the U.S. in jeopardy or see the U.S. default on its government debt – which officials have warned may happen if Congress does not raise the government’s debt limit.