Politics 101: Obama is taking no political risks (beyond that stupid Libyan war Hillary pushed) nor allowing any major spending cuts that might temporarily raise unemployment until he is safely elected. Don't expect much from him. He may or may not consider more political risky reforms like this after (if ???) he is re-elected. Don't count on him.
Meanwhile his party will be busy dropping political “tax cuts for the rich paid for by starving the poor, elderly and sick ” bombs on Republicans to try to get the advantage for 2012. Hopefully Paul Ryan + CO knew this ahead of time and have a good counterattack ready.
Of course their counterattack is that irresponsible, massive spending, including automatic increases in entitlement spending, leads to disaster.
Whether the counterattack works depends on
1) How effective the GOP presentations are, but more important is
2) How much voters care about debt vs. pork and entitlements.