GovernmentExecutive.com

President Obama Thursday unveiled what he called a more "honest" $3.55 trillion fiscal 2010 budget that would fund investments in energy, healthcare and education initiatives.

"For too long, our budget has not told the whole truth about how precious tax dollars are spent," Obama said. "Large sums have been left off the books, including the true cost of fighting in Iraq and Afghanistan. We need to be honest with ourselves about what costs are being racked up -- because that's how we'll come to grips with the hard choices that lie ahead."

The outline has a 10-year horizon, rather than the five-year window used by former President George W. Bush, and the full budget will come in April.

"We've had six weeks to do what normally takes six months," Office of Management and Budget Director Peter Orszag said. The package of big-ticket items and tax hikes for those in the top income brackets is certain to come under fire in Congress.

On energy, the White House will work with Congress and stakeholders to develop a cap-and-trade program to reduce greenhouse gas emissions by approximately 83 percent below 2005 levels by 2050. The program would provide about $150 billion over 10 years for clean-energy initiatives, starting in fiscal 2012, to help the transition to a clean-energy economy. The budget would provide $630 billion as a "down payment on healthcare reform" over 10 years, drawing savings in particular from cuts in Medicare subsidies.

Taxes will go up on high-earners, including a 28 percent limit on the amount of deductions for mortgage interest, charitable contributions and local taxes, rather than the current 35 percent limit. The top tax rate jumps back to 39.6 percent. Obama said reforming health care will reduce its financial burden on families, tame the deficit and ultimately help revive the economy. "With this budget, we are making a historic commitment to comprehensive healthcare reform. It's a step that will not only make families healthier and companies more competitive, but over the long term it will also help us bring down our deficit."

On education, Obama seeks funds to double the number of children served by Early Head Start; expand Head Start; promote successful models of school reform and double support for charter schools; and support a $5,550 Pell Grant maximum award in the 2010-2011 school year.

Orszag said the White House has scrubbed the budget and found $2.2 trillion in savings. For example, the budget proposes eliminating the requirement that the federal government pay storage costs of cotton that is put under loan with USDA; eliminates mine cleanup payments to states that have completed their share; increases collection of delinquent tax from federal contractors and axes education programs with records of low performance. Another roughly $7 billion over 10 years would come from new user fees, including higher fees for spectrum licenses.

George E. Condon Jr. contributed to this report.