| Daniel Nasaw in Washington Thursday 26 February 2009 17.35 GMT President Barack Obama today unveiled the first federal budget of his administration, which will have the largest deficit since the second world war, with spending outstripping revenues by $1.75tn (£1.2tn). The budget also will significantly raise taxes on wealthy individuals while cutting taxes for working-class Americans. It includes spending cuts and revenue increases, with an increase in taxes on couples making more than $250,000 per year, and individuals making more than $200,000. At the White House, Obama said the budget reflects "hard choices" his government will have to make to get the economy back on track, reform the US healthcare system, and convert the country to a greater reliance on renewable energy. The budget must be approved by Congress. Republicans immediately blasted the proposed tax and spending increases, a reaction that promises the White House will have a tough fight ahead of it. "I have serious concerns with this budget, which demands hardworking American families and job creators turn over more of their hard-earned money to the government to pay for unprecedented spending increases," Republican Senate leader Mitch McConnell of Kentucky said. Link to Article |