This chart and article from The Economist does a great job illustrating the reasons for my views on the Bush tax cuts which I shared yesterday. The federal government has two options: reduce spending or increase taxes. I don’t see the former happening regardless of which political party is in power. The majority of the federal budget is defense and entitlements, neither of which are likely to change materially without major policy adjustments. Someone’s eventually going to pay for the variance between the two lines. We get to decide whether it’s us or our children.