The Brookings report argues that closing long-term fiscal deficits cannot be achieved solely by taxing high earners or corporations. Analysis shows that the required savings necessitate broad-based tax increases that would significantly impact middle and lower-income families, as targeted taxes on the wealthy are insufficient. The report notes that high-tax OECD nations achieve high revenues through broad consumption taxes (like VAT) rather than exclusively through highly progressive taxes on the rich. Consequently, any major tax-funded deficit solution would impose a substantial burden on the working class, potentially without the comprehensive social benefits enjoyed by European counterparts.
Introducing the IRS Spotlight
English Summary
Brookings has launched the "IRS Spotlight," a new resource providing accessible data and analysis on federal tax administration, addressing concerns about declining IRS performance and data accessibility. The Spotlight compiles data from various sources, including the IRS, Treasury Inspector General, and Taxpayer Advocate, highlighting issues like workforce reductions, leadership turnover, and data transparency challenges. This initiative aims to ensure continued public access to vital information about the IRS, particularly given recent data removal from official websites. The Spotlight's existence underscores the need for independent oversight and transparency regarding IRS operations and performance.
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The 2026 Brookings survey indicates that Fed watchers generally rate current communications highly, finding the chair's post-meeting press conference to be the most useful communication channel. While most respondents support maintaining the current 'ample reserves' framework and view the balance sheet size as stable, the most critical finding is the perceived threat to the Fed's independence. For incoming leadership, the primary strategic challenge is maintaining monetary policy autonomy from political interference, which 75% of respondents rate as a significant threat. Policymakers should therefore prioritize clear, consistent, and highly independent communication to sustain market credibility and policy effectiveness.
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The article argues that the 2026 primary season serves as a critical barometer for internal party cohesion, determining the political landscape for the 2028 presidential cycle. Key evidence highlights the Republican struggle between the MAGA wing and traditional conservatives, testing the limits of Trump's influence in various state primaries. Simultaneously, the Democratic party is grappling with tensions between its moderate and progressive factions, as seen in recent special and state elections. Ultimately, the success or failure of these intraparty battles will dictate the platforms and candidates that enter the general election, signaling whether the parties can unify or if deep divisions will jeopardize their electoral viability.