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Obama's Budget Predicts Deficit Of $1.75 Trillion

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The Associated Press

Published: February 27, 2009

WASHINGTON - President Barack Obama laid out his first budget plan Thursday predicting a stunning federal deficit of $1.75 trillion this year - nearly four times last year's record - and asking Congress to raise taxes on the wealthy to stem that flood of red ink while still moving the country toward guaranteed health care for all.

Denouncing what he called the "dishonest accounting" of recent federal budgets, Obama unveiled his own $3.55 trillion blueprint for next year, a bold proposal that would transfer wealth from rich taxpayers to the middle class and the poor.
Congressional approval without major change is anything but sure. The plan is filled with political land mines including an initiative to combat global warming that would hit consumers with considerably higher utility bills. Other proposals would take on entrenched interests such as big farming, insurance companies and drug makers.

Obama blamed the expected federal deficit explosion on a "deep and destructive" recession and recent efforts to battle it. Republicans signaled budget battles to come:

"We can't tax and spend our way to prosperity," said House GOP leader John Boehner of Ohio. "The era of big government is back, and Democrats are asking you to pay for it."

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