Obama sending $4 trillion spending plan to Congress, pledging to address middle-class squeeze.

Markets Associated Press

President Barack Obama is sending Congress a $4 trillion budget that seeks to raise taxes on wealthier Americans and corporations and use the extra income to lift the fortunes of families who have felt squeezed during tough economic times.

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The budget being proposed Monday would also ease tight budget constraints imposed on the military and domestic programs back in 2011. And it unveils new initiatives, including an ambitious $478 billion public works program for highway, bridge and transit upgrades.

Republicans are already on the attack, accusing the president of seeking to revert to tax-and-spend policies that will harm the economy while failing to do anything about the budget's biggest problem — soaring spending on government benefit programs.

Obama's fiscal blueprint, for the budget year that begins Oct. 1, proposes spending $4 trillion and projects revenues of $3.53 trillion.