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Obama ready to propose 'big package' on sequester fight

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"If that's an argument they want to have ... that's an argument I'm more than willing to engage in," Obama said. "I promise you we can win that debate because we're on the right side of this argument."

In recent days, Obama has called for the sequester to be replaced with a combination of spending cuts and tax hikes, while Speaker John Boehner and Republicans say that it should only be replaced by other spending cuts.

Obama on Thursday acknowledged that he would like to "do some additional reforms" on entitlements and "cut out programs that we don't need." But he argued that it "shouldn't be on the backs" of senior citizens and middle-class Americans.

For more on Obama's remarks, click here.