We believe you will not have to pay more than the current rate structure proposes - which is, for 50 percent of the public, nothing; for another 25 percent, only a 10 percent increase; and for the remaining 25 percent, a 34 percent increase.

I now believe the current structure can no longer survive.

In 2010 the U.S. will have a payroll tax rate increase, an estate tax increase, and income tax increases. There's also a tax increase coming in 2010 on carried interest. This rate will rise from its current level of 15 percent to 35 percent, and then it will rise again in 2011.

I think this puts the odds of a rate increase at their June 29-30 meeting at about 50 percent.

I never have voted for a pay increase for me, and with such a huge federal deficit, I don't think it's right to vote for a pay increase for yourself ... My salary is greater than most of the people in my congressional district, and there is no way I can vote for a pay raise when many of them are just getting by.

The year-over-year gain of 1.7 percent reinforces the sense that the current series of Fed rate hikes is nearly finished.