On Jan. 1, 2011, federal, state and local taxes are scheduled to rise sharply. W. Bush's tax cuts expire on that date, meaning the highest federal personal income tax rate will go from 35% to 39.6%, capital gains will rise from 15% to 20%, highest dividend rate will go from 15% to 39.6% and the estate tax will go from zero to 55%. Several other changes will occur as a result of the tax cut expiration. Payroll taxes will be increased, AMT taxes increase and even penetrating middle America. Tax on Cadillac Health Care plans. And oh by the way, ALL of the stimulus money will have been spent by the end of 2010. The result will be that spending will dry up like a prune, tax reciepts will actually fall despite all the tax hikes, simply because personal income will be way down -- and as the economy is coming to a halt, we have absolutely no more weapons to stimulate the economy. No more stimulus money. Cannot cut interest rates any more. Prepare for horrendous increases in unemployment, a double-dip recession which will be worse than the initial in 2008, and national debt that is skyrocketing by the minute. Attaboy, Obama. Look what happened to auto sales after the cash for clunkers program ended. Look what happened to home sales after the homebuyer tax credit expired. Doesn't take a rocket scientist to see what will happen when these taxes increase dramatically on Jan. 1. If you tax people to work, and pay people not to work, you are doomed.