In his weekly address, President Barack Obama said he is willing to consider more spending cuts and tax increases to reduce the deficit.
The president praised the deal that averted the fiscal cliff, but said cuts must be balanced with more reforms to the tax code.
He also said he will budge when it comes to getting Congress to lift the federal debt ceiling.
"One thing I will not compromise over is whether or not Congress should pay the tab for a bill they've already racked up. If Congress refuses to give the United States the ability to pay its bills on time, the consequences for the entire global economy could be catastrophic. The last time Congress threatened this course of action, our entire economy suffered for it."
The nation's credit rating was downgraded in 2011, the last time lawmakers threatened inaction on the debt ceiling.
Congress may have averted a so-called fiscal cliff but Republicans are continuing their calls for significant spending cuts.
In the GOP's weekly address, Rep. Dave Camp of Michigan credited Republicans' hard work for preventing tax increases. But he said it is time to find ways to tackle Washington's wasteful spending.
Camp said the debt is crushing small businesses and future generations, and "selling the country's financial independence to China."
"Many of our Democrat colleagues just don't seem to get it. Throughout the fiscal cliff discussions, the president and the Democrats who control Washington repeatedly refused to take any meaningful steps to make Washington live within its means," Camp said. "That position is irresponsible and fails to acknowledge what every family in America already knows. When you have no more money in your account and your credit cards are maxed out, then the spending must stop."
Camp also discussed reforming the tax code, saying when about 60 percent of taxpayers need to hire professional help to do their taxes, "there is something fundamentally wrong."