United Liberty

The budget submitted by President Barack Obama for FY 2011 contains a tax increase of $1 trillion:

Taxes on high-income earners would rise by nearly $1 trillion over the next 10 years, under the budget plan put forward by President Barack Obama on Monday.

The bulk of that increase comes as tax cuts enacted under President George W. Bush expire at the end of 2010.

The top two income-tax rates, which affect people earning more than $200,000 a year, or $250,000 for married couples, will return to 36% and 39.6%, from 33% and 35% now.

Under the budget plan, capital gains and dividends would be taxed at 20%, up from 15% now, for people at those income levels.

In a time of economic uncertainty, increasing tax rates is asking for more problems. This tax increase by default. Simply by letting the Bush tax cuts expire, will hit small businesses that file individual income tax returns.

When you’re sitting at 10% unemployment, with some economists predicting a worsening of that figure, increasing taxes is the opposite of what the president and leaders in Congress should be doing.