Obama to propose tax hikes to pay for health reform

President Barack Obama will propose $634 billion in tax hikes on upper-income taxpayers and cuts to government health spending to pay for health-care reform over the next 10 years

The cuts would affect managed-care companies, prescription drug manufacturers and hospitals

The spending cuts are aimed at curbing overall health-care spending while also raising money for the new president's plan to enact near-universal health care

Obama's budget will aim to pump money into energy, education and health care even as it seeks to save cash by cutting programs and halve the roughly $1 trillion deficit by the end of his first term.