Obama Projects $1.75 Trillion Deficit

Two words for President Obama's budget: sticker shock. The White House projects an incredible $1.75 trillion deficit this year as a result of emergency measures aimed at staving off economic collapse. The budget provides a blueprint for Obama's agenda on taxes, health, and the environment as well. The 10-year plan includes some $634 billion in funds reserved for changes in the health care system. According to a document describing the plan, Obama plans to pay for the expanded coverage by "rebalancing the tax code so that the wealthiest pay more." The new tax laws would limit the amount of cash Americans could claim in tax deductions for income over $250,000 a year and the savings would then go to health care. Obama also plans to pair another tax hike with a tax cut—his budget assumes the passage of a cap-and-trade plan to tax carbon emissions, the revenue from which would go to permanently lowering taxes on low and middle-income workers.