With less than a month until automatic spending cuts kick in across the federal government, President Barack Obama is floating a compromise.

The president is asking Congress to approve tens of billions of dollars in short-term cuts and tax reform measures instead.

This is to head off the March 1 cuts that many say would be devastating to the economy.

Republican leaders say they are focused on long-term reform and oppose any tax hikes.

If lawmakers cannot come to agreement on a long-term plan, the president wants some sort of solution.

"Our economy right now is headed in the right direction. And it will stay that way as long as there aren't any more self-inflicted wounds coming out of Washington," the president said. "So let's keep on chipping away at this problem together, as Democrats and Republicans, to give our workers and our businesses the support that they need to thrive in the weeks and the months ahead."

Meanwhile, in a new report the Congressional Budget Office is predicting the deficit will drop this year to below $1 trillion for the first time during Obama's presidency.