After year of relative peace on budget front, Obama's new plan sets up battle with Republicans

Economic Indicators Associated Press

It's been a year of relative peace in Washington's budget battles.

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But on Monday, President Barack Obama will lay out a $4 trillion budget that needles Republicans with proposals for higher taxes on the wealthy and businesses to pay for education, public works projects and child care.

The plan is expected to be dismissed by GOP lawmakers now running Capitol Hill.

The proposal is rolling out as the deficit is dropping and Obama's poll numbers inch higher.

Though Republicans will march ahead on their own, they ultimately must come to terms with Obama, whose signature is needed on anything that is going to become law.