WASHINGTON (AP) - President Barack Obama's budget plan would increase taxes by $1 trillion over the next decade, relying on many proposals that have been repeatedly rejected by Congress.
Obama says his plan includes $580 billion in tax increases to help reduce government borrowing. But the tax hikes don't stop there. The proposal would also impose an additional $400 billion in tax increases. Much of it would be used to pay for more spending.
One proposal is a 94 cents-a-pack increase in the cigarette tax. The tax would raise $78 billion over the next decade to pay for early childhood education.
Obama says his tax plan is part of a balanced approach to deficit reduction that includes painful cuts to benefit programs like Social Security and Medicare. Most GOP lawmakers oppose new taxes.