He added that the budget plan from House Budget Committee Chairman Paul RyanPaul RyanSenate heading for late night ahead of ObamaCare repeal showdown Demonstrators gather outside Capitol to protest GOP ObamaCare repeal Two GOP senators back ObamaCare repeal after Ryan call MORE (R-Wis.) would not balance the budget for decades, which he said shows higher taxes on the wealthy are needed.

"The supply-side dogma that lower taxes mean higher revenues has proven false over the last three decades," he said.

Hoyer said Democrats are willing to cut spending, but they want to get there through a combination of raising taxes and cutting spending, a theme President Obama is expected to highlight in his Wednesday remarks on federal fiscal policy.

"These entitlements must be addressed," he said, noting Republican efforts to cut Medicare and Medicaid, "but we must address them in a way that both keeps them sustainable and makes them available for generations to come.

"Let's reform our entitlement programs with a scalpel, not an axe," he concluded. "Let's look for savings in every part of the budget, defense included. Let's close tax loopholes, but let's also use the tax code to reduce the deficit and ensure that all of us, even the most privileged, pay their fair share."