A long term plan, which is likely to offer solution on the budget deficit reduction, is being proposed by President Obama on Wednesday. In his speech, Obama is likely to ask for a “shared sacrifice,” which involves budget cuts and taxes to solve the country’s national debts.

An even larger budget fight awaits President Barrack Obama and the leaders from the the Democratic and Republican parties in the Congress on Monday, just few days after a nearly narrow escape from a possibly harmful federal government shutdown.

For the next few months, conflicts are expected to arise in the political regime and would most probably highlight President Obama’s race in the re-election in 2012. This would likely outshine the $38 billion spending cut for the last six months of this year.

Representative Eric Cantor, the no. 2 Republican in the House of Representatives said the spending cut agreed this week is only the start of what he called the first bite of the apple. Several Republicans, who made out big in the last November elections, are doubtful of President Obama’s sincerity on the debt reduction.

On his interview with Fox news, Cantor said it is difficult to trust what the Obama administration is saying or what it is going to say.

Obama’s said plan will investigate savings in the area of defense spending, as well as the state-run Medicare, including Medicaid programs for the health of the poor and elderly people. This aims to cut the $1.4 trillion yearly financial deficit said Senior White House adviser David Plouffe.