it s math. reporter: to reduce the deficit $3 trillion, the president obama would cut $580 billion from medicare and medicaid, not social security. save $1 trillion in iraq and afghanistan, and hike taxes $1.5 trillion using the warren buffett rule. tax the rich. if we re going to make spending cuts, many of which we couldn t make if we weren t facing such large budget deficits, then it s only right we ask everyone to pay their fair share. reporter: the well off would go back to mid-1990s rates and lose some deductions. it is a modest change in revenues. if you do it sensibly through tax reform, you ll make growth in the united states stronger. reporter: house speaker boehner said no way. tax the rich, tax the rich. it s not going to get our economy going again. it s not going to put people back to work. reporter: boehner and the president almost agreed to tax hikes in july. the grand bargain. many democrats want a grand