Obama ends tax cuts for rich Americans

US President Barack Obama has announced that tax cuts for America's wealthiest -- who constitute 2 per cent of the entire population -- will end.

"In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2 per cent of Americans," Obama said in his maiden speech to the US Congress on Tuesday.

However, he clarified that this would not affect main street America and downwards.

"Let me (be) perfectly clear, because I know you'll hear the same old claims that rolling back these tax breaks means a massive tax increase on the American people. If your family earns less than $250,000 a year, you will not see your taxes increased a single dime," he said.

"I repeat. Not one single dime. In fact, the recovery plan provides a tax cut -- that's right, a tax cut -- for 95 per cent of working families. And these cheques are on the way," Obama said.

The US President said to preserve long-term fiscal health, there is a need to address the growing costs in medicare and social security. Comprehensive healthcare reform is the best way to strengthen medicare for years to come.

"We must also begin a conversation on how to do the same for social security, while creating tax-free universal savings accounts for all Americans," he said.

Promising transparency and accountability, Obama said, "Because we're also suffering from a deficit of trust, I am committed to restoring a sense of honesty and accountability to our budget."

He said, "That is why this budget looks ahead 10 years and accounts for spending that was left out under the old rules . . . and for the first time, that includes the full cost of fighting in Iraq and Afghanistan. For seven years, we have been a nation at war. No longer will we hide its price."

said.