President Obama says reaching an agreement on debt and deficit would be good for the overall business climate and send an encouraging message to the American people.

He said the Republican plan should include extensions on payroll tax cuts and jobless benefits. But he said he has not seen a “credible plan” on how to cut $2.4 trillion in government spending without raising revenues.

The president says his administration has been clear on government programs Medicare and Social Security. He said making “modest modifications” can save trillions of dollars, while maintaining the core integrity of entitlement programs.

He said the U.S. House of Representatives, which is controlled by Republicans, will probably vote on some measures to make “political statements.”