*He may have sat on the sidelines during the budget debate, but President Obama will enter the fray Wednesday by setting targets for deficit reduction-and coming out in favor of cuts to Medicare and Medicaid.

Still, there is a gap to bridge between Obama and Republicans, who want to essentially privatize Medicare and Medicaid while offering tax cuts to the wealthy.

Obama will not offer a specific plan but wants any solution to include tax hikes for the rich and cuts to defense spending.

The Wall Street Journal says Obama’s proposal “caught Democrats in Congress off guard.”

Read the full report at The Wall Street Journal.