The addition of an expensive new unfunded benefit to Medicare for prescription drugs means that future spending will be much, much greater than projected. When people are given something that is heavily subsidized, they use a lot more of it. Consequently, we can expect drug spending by the elderly to rise very rapidly, especially since drug prices are also likely to rise as demand outstrips supply.

The budget itself admits that these trends are "unsustainable." Since Congress will never reduce benefits to retirees, the only way to make the trends sustainable is by raising taxes significantly.

- posted by Jason @ 2:23 PM