President Obama Unveils New Budget

Associated Press

WASHINGTON (AP) -- President Barack Obama has unveiled a $3.55 trillion spending plan for next year that would boost taxes on the wealthy and curtail Medicare to make way for a $634 billion down payment on universal health care.

In addition to sending Congress his budget for 2010, Obama on Thursday proposed a series of changes that would push spending to $3.94 trillion in the current year. That would result in a record deficit Obama projects will hit $1.75 trillion, reflecting the massive spending being undertaken to battle a severe recession.

Read about the new budget.

As part of the effort to end the crisis, the administration proposed boosting the deficit by an additional $250 billion this year, enough to support as much as $750 billion in increased spending under the government's financial rescue program.