Democrats and President Barack Obama will hold a joint event Tuesday afternoon at the White House pushing a pay-as-you-go bill they argue will help return the country to sounder fiscal footing.

The legislation pushed by Obama includes several massive loopholes allowing trillions of dollars in extensions of tax cuts and spending programs without offsets. Those exceptions include cuts in the estate and gift tax, the alternative minimum tax, the Bush-era tax cuts, Medicare reimbursements for doctors, and the just-passed $787 billion stimulus package, among other items.

However, new mandatory spending programs and tax cuts must be offset with budget cuts or tax hikes. Automatic budget cuts would take effect if Congress enacts legislation that fails to pay for itself.