There are big stakes in Washington standing its ground, because it is increasingly clear that the slow growth of the U.S. economy istraceableto a yawning trade deficit in manufactured goods.
But 25% of the increase istraceableto changes in the way the government projects future costs in a program where the vast preponderance of acquisition costs still lie in the future.
The problem is ultimately traceable back to the tax subsidy--the exclusion of the value of health coverage from taxable income for both payroll and income taxes.