THE AUSTRALIAN: BARACK Obama has set the scene for an ideological battle in next year's presidential election, announcing tax increases for the wealthy.
The proposed hike is part of his plan to reduce the federal budget deficit by $US4 trillion ($3.8 trillion) over 12 years.
In a break from his conciliatory style, Mr Obama has ripped into his Republican opponents for trying to put the burden of deficit reduction on the poor and elderly while continuing to cushion the wealthy.
The President announced a broad plan for reducing the US budget deficit yesterday, including cuts to government health programs and defence spending.
But he raised Republican hackles by refusing point blank to extend tax cuts introduced by the Bush administration for people earning more than $US250,000 a year.
Mr Obama said he had agreed to renew the tax cuts for high-income earners once, as part of a deal with Republicans to guarantee cuts for the middle class. "I refuse to renew them again," he said. » | Brad Norington, Washington Correspondent | The Australian | Friday, April 15, 2011
