President Barack Obama wants to clamp down on tax breaks for the wealthiest Americans and some businesses in order to pay for his $447bn jobs package, setting up a clash with Republicans in the battle over new stimulus for the US economy.

Jack Lew, White House budget director, said the president was proposing to cover the cost of the short-term stimulus for the ailing US economy with $467bn in additional revenues over the next 10 years. Most of the savings – worth about $400bn – would come from limits to the ability of American households earning more than $250,000 per year to deduct items such as mortgage interest and charitable donations from their taxes.

The remainder would come from taxing so-called “carried interest”, or the profits generated by private equity executives, hedge fund managers, and property investors, at the higher ordinary income rate, rather than at lower capital gains rates. Oil companies and corporate jet owners would also see their tax breaks shrink under the Obama administration’s plan.