It is often said that the budget is a statement of priorities. If that’s the case, the Obama administration’s FY 2011 budget should give the American people reason to worry. The proposals, if enacted, would significantly expand an already swollen deficit, dramatically increase taxes amidst a weak economy, and undermine job creation while the unemployment rate stands at 9.7%. Let’s take a look at what this budget means for businesses and families.

An immediate cause for concern is the growth of the federal budget deficit. In FY 2010 alone, the White House forecasts a deficit of $1.6 trillion, followed by a shortfall of $1.3 trillion in FY 2011. In fact, at no time over the next 10 years is the deficit projected to fall below $700 billion. These deficits are being driven by unprecedented levels of spending.  Federal expenditures in FY 2011 will grow to a record $3.8 trillion and claim more than 25% of GDP, a post-World War II record.

As a result of government spending beyond its means, the national debt is expected to nearly double--growing from $9.3 trillion in FY 2009 to more than $18 trillion by FY 2020. This is unsustainable-- such heavy borrowing by government crowds out the capital available for the private sector, threatens to reignite inflation and higher interest rates, and cedes too much leverage to foreign debt holders.

But big spending and even bigger deficits aren’t the only problems with this budget. To pay for its spending, the administration proposes a series of draconian tax increases. Corporations face a tax hike of $468 billion over the next 10 years, which would hamper their ability to create American jobs and compete in the worldwide economy. Upper income households, too, will see their tax bill increase--to the tune of $970 billion over the next 10 years. This will hit small businesses that pay taxes as individuals especially hard. Instead of growing their businesses or hiring workers, entrepreneurs will now have to cut a bigger check to Uncle Sam.

In short, this budget is a surefire way to slow economic growth, increase unemployment, and make U.S. companies less competitive around the globe.

The U.S. Chamber stands ready to support many of the job-creating proposals outlined in President Obama’s State of the Union Address, including doubling exports in five years, expanding the use of nuclear power and offshore exploration for natural resources, implementing performance-based education reforms, improving worker training, and rebuilding our infrastructure. However, we cannot support a budget that will undermine the nation’s overriding priority -- creating jobs. Our elected officials can, and must, do better.