Democratic leaders trying to trim the federal deficit have taken a hatchet to President Obama's budget plan, reports the Washington Post. Congressional Democrats are expected to formally announce plans today to cut hundreds of billions of dollars from the budget over the next five years, and eliminate plans to steer more cash to bail out the financial industry. They will leave the option open for the president to pursue his costly reform agenda—only if the money can be raised.
White House budget director Josh Orszag reacted favorably to early details of the Senate plan, saying it would still allow Obama to meet his objectives on health care, education, clean energy as well as deficit reduction. A review of the tax system is being launched that will seek ways to recoup the billions underpaid by individual and corporate tax dodgers, he said.