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The housing market collapsed, unemployment rose, tax receipts shrivelled and the government's budget deficit went through the roof.
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Rising tax rates exaggerate the problem, Mr. Levinson said.
As the economy recovers and incomes rise, tax payments will increase somewhat.
Mr. Knightley said that a rising tax burden could dent already fragile household confidence.
In response to rising tax competition from other EU nations, Germany is cutting its corporate tax rates.
Taxpayers are split between those who want cuts and those who hope that rising tax receipts might bring easier choices.
Here, lawmakers, Republicans and Democrats alike, approved caps in 2008 amid a public outcry over rising tax bills.
It has since narrowed to a projected $170 billion for this year, the result of an improving economy and rising tax revenues.
School budgets, though largely protected in this spending review, are already under severe pressure from rising tax and pension costs.
In April 2009, Mr. Hands fled Britain and its rising tax rates and now lives on the island of Guernsey, a tax haven just off of France's coast.
Without Iraq, the federal budget is in equilibrium with currently rising tax receipts.
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