Buffett says tax cut plan is unjust

April is a critical month for the government's overall budget year because of the deadline for filing taxes.

But receipts this year were drastically lower, thanks to the impact of the war in Iraq and a sluggish economy.

The figures suggest the US is heading for a record annual deficit of $300bn (�182bn).

Debt ceiling

The government saw a $51bn surplus, down from $67bn in April 2002 and the smallest April surplus since 1995, according the treasury department's monthly statement.

It's basically using the recession to redistribute income to the wealthy George Soros on President Bush's tax cuts

Meanwhile, in a separate development, the Bush administration is seeking its second increase in the federal debt ceiling.

It has asked the Senate to approve a $984bn hike in the amount the government is allowed to borrow.

The House of Representatives approved the debt limit increase, which would produce the largest debt ceiling on record, in its 2004 budget package.

'Unjust' tax cuts

The Treasury Department has had to juggle its accounts since February to stay beneath the current $6.4 trillion debt ceiling, which was put in place in June 2002.

Meanwhile, President George W Bush's controversial $550bn tax cut proposals have been attacked by two of America's richest investors.

Mr Bush is pressing for a final agreement on the proposals this week, as Congress wrangles to fit them into a $350bn limit set by the Senate.

The President believes the tax cuts are needed to kick start the economy and create jobs.

But In an opinion piece for the Washington Post, billionaire investor Warren Buffett attacked them as an unjust gift to the rich.

'Class warfare'

Mr Buffett, listed by Forbes as America's second-richest man, said he already pays about the same income tax rate as his receptionist - about 30%.

But with the planned dividend tax cut, he could end up paying a mere 3% in income taxes, which he said "seems a bit light".

"Supporters of making dividends tax free like to paint critics as promoters of class warfare.

"The fact is, however, their proposal promotes class welfare. For my class," wrote Mr Buffett, who is the chairman of holding company Berkshire Hathaway.

'Not much impact'

Legendary currency speculator and philanthropist George Soros, whose wealth is estimated at $6bn, also dismissed the tax cuts.

He said they would not revive the US economy in the short-term but were only aimed at helping the rich get richer.

"This move is designed not to have much impact now.

It's designed to have an impact over an extended period and it's basically using the recession to redistribute income to the wealthy," Mr Soros said in an interview with financial news network CNBC.

"I think that is really not a very effective way of using a deficit," said Mr Soros, whose wealth is estimated at $6bn.