The problem is, this can't go on forever. So what happens when we're finally forced to make a decision and we either cut programs or raise taxes?

It looks to me like the GOP has gotten itself so firmly allied with eternal tax cutting, that they'll have a hard time repudiating it. At that point, they go down.

(Unless, of course, they can pull off the magic trick of raising *payroll* taxes and somehow convincing everyone that they've never been against that, only all the other kinds of taxes.)

To the extent past performance IS indicative of future results, I'd guess they'd pick option C--borrow money and pass it on to future generations. That's what Democrats and Republicans have done for decades.

We may be able to achieve some consensus on eliminating some giveaway programs like agricultural and other corporate subsidies. Beyond that, it's likely to just be tweaks around the edges. Socialized medicine is clearly coming; we're just going sector-by-sector rather than in one fell swoop.

I think we're going to have to do something to fix Social Security. Unfortunately, the 1990s stock bubble burst at a very inopportune time, so a free market fix isn't feasible right now. But increasing the retirement age, especially for people engaged in other than physical labor, is something that simply has to happen. And going to 67 from 65 isn't nearly enough.

And I agree that tax cutting can't go on forever. While I'd prefer to do away with income taxes entirely, in favor of some sort of consumption tax (perhaps excepting food and medicine), I don't see any momentum in that direction right now. While I believe, in theory, that cutting taxes produces incentives to invest, the logic made more sense when the top rates were 90% or even 70% than at 35%. As tax rates flatten, the argument for further cuts gets harder to make.

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