The Budget Director resigned,

partly in frustration over his lack of success in persuading the administration to tackle fiscal deficits more aggressively.

Other  members of the economic team emphasize spending.

Mr Obama’s 2008 election pledge was not to raise taxes on any households earning less than $250,000 a year puts all the fiscal emphasis on draconian spending cuts, and pushing marginal tax rates on the very rich to confiscatory levels.

“Peter feels strongly that this is a pledge that has to be broken if the President is to take a lead on America’s fiscal crisis,” says an administration official not authorised to speak on the matter.

Mr Orszag said: “

“We had historical successes in bringing the economy back from the brink of a potential depression, and in beginning the difficult shift toward a better health care system."

"The nation still faces fiscal challenges over the medium and long term."

The UK announced a strong package of spending cuts and tax increases to tackle its deficit, leaving the US as the only major economy that has yet to unveil such plans.  See:

http://www.pj6.com/19/BP2.htm