Obama has already "raised taxes," the burden on everyone including his "poor" dupes and the middle class with his debasing of the currency by creating such a huge debt burden.
Fools think that they're exempt and that "everything is free." But there are transfers of assets rather than creation of goods and services, and "the tax" will manifest itself as a declining standard of living.
My community had a 26% decline in sales tax revenues for March 2009. Instead of a "negative savings rate," now Americans are saving some 6% to 7% of their income. Scared of the future? The coming inflation will make this savings enterprise an exercise in futility.
By the way, China is also in deep doodoo regardless of the reserves of the American dollar that it holds. Exports constituted 40% of the Chinese economy. These have dropped 26% (a coincidence not a typo). More than half of Chinese exports were to the U.S. Without the export markets to sustain it, there are massive readjustments and the some 200,000,000 unemployed and underemployed whose hope founded on their burgeoning economy, is now evanescing. Some 20,000,000 from one poor region have been sent back to the rural areas from the cities. There were some 80,000 riots in China last year. Much unrest.
The Chinese banking system is under great stress as they were "betting on the come." Their reserves were reportedly some 0.72%, less than 1% of their ... Oh well, what the heck. Their system is so opaque that Fitch's reports are probably largely speculative.
The Chinese were supporting large army owned companies that were operating at a loss so as to maintain employment and thus reduce unrest.
China has other problems. The Chinese abortion of girls has resulted in a huge overage of males without the prospect of the stabilizing presence of women in their lives. And with the other unrest, this is a situation which might just ignite with people who are agitated and have no prospects, and so "nothing to lose."
Another problem is the inverse population bomb affecting a country which used abortion to enforce one child families, so that as a matter of public policy you have family trees more prevalent than those in other declining population countries, with four grandparents, two parents, and one "prince," who will as the others age, be called upon to support all of the six elderly folks. It is unlikely that productivity will increase sufficiently to maintain this structure at anything approximating even the present standard of living.
Germany and Japan are two other countries very dependent on exports and with declining populations, generation by generation.
It does not augur well.