Obama unveils new budget

Greta Kaul

President Barack Obama's budget, unveiled Monday, aims to trim $4 trillion from the deficit over the next decade. It also proposes spending increases in the hopes of boosting the nation's economy, National Public Radio reports.

Obama's budget would eliminate tax deductions for the wealthy and implement the "Buffet rule", which ensures households with an annual income of more than $1 million would pay at least 30 percent of their income in taxes. The president told an audience at a Virginia community college Monday that the country can't cut its way to growth.

Republicans called the budget a retread of previously rejected ideas. Senator Mitch McConnell, R-Ky., said the budget is unlikely to pass in the Senate, the Associated Press reports. The budget battle is likely to be a key issue in November's presidential election.

Obama's proposal would also:

-Allow Bush-era tax cuts to expire

-Eliminate tax breaks for oil, gas and coal companies

-Shell out $476 billion for transportation projects

-Increase spending toward the hiring of teachers, police and rescue workers

-Cap appropriations approved in August