Obama would also impose a new $61 billion tax over 10 years on big banks aimed at recovering the costs of the financial bailout and providing money to help homeowners facing foreclosure on their homes. It would raise $41 billion over 10 years by eliminating tax breaks for oil, gas and coal companies and claims significant savings from ending the wars in Iraq and Afghanistan.
Lew said the budget would cut spending by $2.50 for every $1 in extra taxes it seeks.
"In the long run, we need to get the deficit under control in a way that builds the economy," Lew said. "We do it in a way that's consistent with American values so that everyone pays a fair share."
Among the areas targeted for increases, Obama is proposing $476 billion in increased spending on transportation projects including efforts to expand inner-city rail services.
To spur job creation in the short-term, Obama is proposing a $50 billion "upfront" investment for transportation, $30 billion to modernize at least 35,000 schools and $30 billion to help states hire teachers and fire, rescue and police. Republicans in Congress, opposed to further stimulus spending, have blocked these efforts.
The Obama budget seeks $360 billion in savings in Medicare and Medicaid mainly through reduced payments to health care providers, avoiding tougher measures advocated by House Republicans and the deficit commissions that said restraining health care costs will be critical in the future.
Lew appeared on ABC's 'This Week," CNN's "State of the Union," ''Fox News Sunday," NBC's "Meet the Press" and CBS' "Face the Nation." Ryan was on ABC and McConnell was on CBS.
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Associated Press writer Andrew Taylor contributed to this report.
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