Obama proposes budget with higher taxes on rich

U.S. President Barack Obama is proposing higher taxes on the wealthy and corporations, along with cuts in many government programs as he submits his 2013 federal budget to Congress.

Obama spoke at a community college near Washington, highlighting his push to boost funding for the education needed to help students get technical skills needed to land good jobs.

He says the $3.8-trillion spending plan is aimed at stimulating the economy in the short term and cutting the federal deficit by around $4 trillion during the next decade. He proposes raising taxes on corporations and wealthy Americans by about $1.5 trillion during the next 10 years, and trimming government spending. The proposal would leave a $1.3-trillion deficit next year.

The budget covers the 2013 fiscal year that begins in October, just a month before U.S. presidential and congressional elections. Congress has to approve the budget before it can become law, and members of the opposition Republican Party are sharply critical of Obama’s budget priorities.

The top Republican on the Senate Budget Committee, Jeff Sessions, said the Obama proposal is full of budget gimmicks that overstate savings and understate costs. Republicans in the House of Representatives are preparing their own budget proposal.

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