WASHINGTON—President Barack Obama's $3.8 trillion budget for the coming fiscal year raises taxes on businesses and upper-income households by $2 trillion over 10 years and cuts spending on programs with considerable political support, but will still leave the nation with $8.5 trillion in added debt over the next decade.

The budget plan for fiscal 2011 calls for nearly $1 trillion in tax increases on families with income above $250,000 over the next decade—largely by allowing tax cuts from the administration of George W. Bush...