Washington (CNN) - Gene Sperling, the director of President Obama's National Economic Council, said Sunday the White House will accept a compromise that only contains mutually acceptable spending cuts, as part of the initial deficit reduction package.
Sperling, who has been at the center of the ongoing negotiations between the White House and Congressional leaders, said the second phase of the plan would tackle more significant deficit reduction, entitlement reform and tax reform that raises revenues.
However, the revenue increases would not take place over the next 18 months.
"The president, as you know, has been pushing very hard to cut taxes with the payroll tax cut extension for next year, because we want to make sure we're giving this economy as much momentum as possible," Sperling said on CNN's "State of the Union."
He also voiced his support for an enforcement mechanism to ensure the bipartisan group of lawmakers reaches an agreement over deficit reduction.
"You want to make it hard for them just to walk away and wash their hands," Sperling told CNN Chief Political Analyst Gloria Borger. "You want them to say, if nothing happens, there will be a very tough degree of pain that will take place."
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