Smoke break gets more expensive with tax boost (AP)

AP - However they satisfy their nicotine cravings, tobacco users are facing a big hit as the single largest federal tobacco tax increase ever takes effect Wednesday.

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Treasury secretary says market won’t solve problem (AP)

AP - Treasury Secretary Timothy Geithner defended his approach to fixing the country’s economic mess Sunday, saying “the market will not solve this” while disclosing a bailout fund for battered banks has $135 billion left and might need more.

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Smith: Palin with Bush and Limbaugh on Democrat’s mail (Politico)

Politico - Blog: This can’t say good things about how Sarah Palin polls in swing districts: A late attack piece from Scott Murphy in NY-20 features her, with Rush Li

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Obama: won’t speed up Iraq pull out (AP)

AP - President Barack Obama says he won’t consider speeding up the troop pullout from Iraq even though security has improved and violence has decreased.

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Obama rules out US troop raids into Pakistan (AP)

AP - As he carries out a retooled strategy in Afghanistan, President Barack Obama says he will consult with Pakistan’s leaders before pursuing terrorist hideouts in that country.

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Sources: Obama to give GM 2 months to restructure (AP)

AP - The White House forced the resignation of General Motors’ top executive Sunday, on the eve of announcing new aid and a 60-day deadline for the ailing auto giant to restructure. Chrysler LLC will get up to $6 billion and 30 days to complete an alliance with Italian automaker Fiat SpA.

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Democrats, GOP duel over small business taxes (AP)

AP - Few small businesses would see a tax increase under President Barack Obama’s budget plan. But those companies in line for higher taxes employ the most workers and could be hit hard.

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GOP says Obama budget threatens future prosperity (AP)

AP - The GOP senator who almost joined the Cabinet attacked President Barack Obama’s grand spending plans, saying the U.S. must live within its means or risk its tradition of passing a more prosperous country from one generation to the next.

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McCain supports Palin for president … sort of (AFP)

AFP - Republican Senator John McCain gave lukewarm support Sunday to a bid for the presidency by Alaska Governor Sarah Palin, his former running mate in the 2008 race for the White House he lost to President Barack Obama.

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AdWatch: A campaign-style blitz for Obama budget (AP)

AP - TITLE: “Blueprint” and “Obama Budget.”

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