Obama's budget trades steep deficits for broad goals

"President Obama on Thursday unveiled a $3.55-trillion budget outline that he described as an "honest accounting" of federal spending and of the efforts needed to turn the economy around -- but one that also revealed the political battles ahead."

"The fiscal 2010 budget projects a $1.17-trillion deficit, following an estimated $1.75-trillion deficit for 2009 -- a shortfall Obama described as unfortunate but necessary in the short term to jump-start the economy."

"Obama said the deficit numbers also were eye-popping because the previous administration left spending for the wars in Iraq and Afghanistan off the books."

"Obama has pledged to bring down the deficit spending as quickly as possible, and his budget projection shows him meeting a self-imposed target: halving the deficit to $570 billion in fiscal 2014."

"The budget plan also would reduce payroll taxes by $800 for families with incomes under $150,000. But those with incomes above $250,000 would see their tax burden go up, mostly through changes in how deductions are itemized"