When the House returns to Washington in September, it is set to consider another tax cut that could reduce revenue by an additional trillion dollar. None of this includes the natural and man-made disasters — everything from earthquakes, forest fires and hurricanes to military, terrorist and foreign policy situations — that occur each year and cost more than planned.
Nor does it include interest on the national debt. The combination of big increases in federal borrowing from the very large deficits and the need for Washington to roll over its sizable short-term debt at higher interest rates will make this the fastest growing spending of all.
And all of this is happening when the economy is doing well. The relatively mild economic downturn that many are now saying will occur over the next few years will lower revenue and increase the deficit even further.