A White House official said his proposals include an overhaul of the tax code that would raise US$1.5 trillion.

The official said the president would not agree to cuts in health care for the elderly if there were no provisions for rich Americans to pay more tax.

Republicans in Congress have already said they will not agree to any plans to increase taxes.

Mr Obama's plans include nearly US$250 billion in cuts on Medicare spending - the health care programme for the elderly.

"He will veto any bill that takes one dime from the Medicare benefits seniors rely on without asking the wealthiest Americans and biggest corporations to pay their fair share," Obama administration official said.

The president will announce his long-term deficit reduction plan at the White House at 10:30 (14:30 GMT) on September 19.