President Barack Obama wants to cut his country's massive deficit in half by the end of his four-year term in office.
He will try to achieve that lofty goal by cutting back spending on the Iraq war and raising the taxes of the U.S.'s wealthiest citizens, an administration official told The Associated Press.
The official said Obama's request for the budget year that begins on Oct. 1 should put the country on track to cut the deficit within a four-year timeframe.
Obama's budget request will be delivered to Congress on Thursday, with a full summary of the massive document to arrive in April.
Obama inherited about a $1.2 trillion deficit from former president George W. Bush.
Earlier on Saturday, Obama said nearly all working families in America will benefit from the tax cuts included in his US$787 billion economic stimulus package within six weeks.
In his weekly radio and web address, the president said 95 per cent of working families will see more money coming home from their weekly paycheques by April 1.
"I'm pleased to announce that this morning, the Treasury Department began directing employers to reduce the amount of taxes withheld from paycheques," Obama said. "Meaning that by April 1, a typical family will begin taking home at least $65 more every month."
"Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans," Obama added.
According to The Associated Press, the incoming tax cuts, known as the "Making Work Pay" tax break, will save eligible individuals $400 throughout the rest of the year. Couples should see up to $800 in savings.
The president thanked lawmakers, his colleagues and his fellow Americans for supporting his efforts to speed ahead with "the most sweeping economic recovery plan in history."
"I'm grateful to Congress, governors and mayors across the country, and to all of you whose support made this critical step possible," Obama said.
Like in previous addresses, the president cautioned that although he was pleased that his recovery plan had been signed in to law, it would not be enough to fix all of America's problems by itself.
"No single piece of this broad economic recovery can, by itself, meet the demands that have been placed on us," Obama said.
But the president said he was optimistic that the U.S. was on the right track.
"I am confident that we, as a people, have the strength and wisdom to carry out this strategy and overcome this crisis," he said.
"And if we do, our economy -- and our country -- will be stronger for it."
