Obama's plan includes up to $750 billion in additional bailout money for banks, and a $1.75 trillion deficit. A "reserve fund" of $634 billion will be used to help pay for the president's universal health care plan.
To pay for the proposed budget increase, Obama plans a series of tax rate increases including one on the top bracket individuals making more than $200,000 a year. Families making more than $250,000 a year will also have their deductions reduced.
Capital gains tax rates for people in the top tax bracket would increase to 20 percent, up from 15 percent.
Some $353 billion over 10 years will be raised through "revenue changes and loophole closures" for business entities.
Obama also plans to raise $645 billion through a pollution tax using a cap-and-trade system that allows less-polluting companies to sell carbon credits to those who produce more pollution.
Obama Budget Sees $1.75 Trillion Deficit
New York Times - 56 minutes ago
President Obama, with Vice President Joseph R. Biden Jr. and Treasury Secretary Timothy F. Geithner, spoke about the budget on Thursday at the Eisenhower Executive Office Building in Washington.
