(CNSNews.com) -- President Obama's budget director would not say whether the administration will recommend that taxes not be raised on Americans earning less than $250,000 annually. A fiscal commission, which has not yet been assembled, is expected to review ways to reduce the federal deficit.Such an increase would violate the president's campaign pledge to hike taxes only on higher income earners.
"We've been clear on our position on taxes, but we have to let the commission -- it hasn't even been formed yet -- let's let it do its work," said Peter Orszag, director of the Office of Management and Budget (OMB).
President Obama last week signed an executive order to assemble a bipartisan commission that would review ways to reduce the federal deficit.
The $3.8 trillion budget proposal that the president submitted to Congress on Monday increases taxes by letting the Bush tax cuts expire in 2011 for those making more than $250,000. Letting the Bush tax cuts lapse would bring in about $2 trillion in revenue over 10 years, the administration projects.
The president's fiscal year 2011 budget proposal also includes a three-year spending freeze on discretionary spending, despite a 20 percent increase in discretionary spending for fiscal year 2010.