U.S. Chamber Chief Economist Marty Regalia on the credit markets

The President's proposed budget would raise taxes on successful small businesses, the very segment of the economy that is essential to getting it moving again.

"You don't build a house by blowing up its foundations. Small businesses and the entrepreneurs who lead them have been the primary drivers of job growth over the past decade," says Bruce Josten, U.S. Chamber senior vice president for Government Affairs. "This plan would punish them with higher taxes, resulting in less government revenue, less economic growth, and fewer jobs—not more."

The budget proposal released by the Obama Administration last week includes several tax hikes, including those on Americans earning more than $250,000 a year. Many small businesses such as subchapter S corporations pay the individual income tax. The proposal also includes the full return of the death tax in 2011, with rates up to 55% and estates valued at as little as $1 million being subject to the tax.

"The president is going to need a growing economy [to pay for his programs] ... and I don't think tax measures that are aimed specifically at the productive part of the economy help," adds Chamber Chief Economist Marty Regalia.

Read Josten's statement.