Contributor: The choice between tax reform and total disorder - Los Angeles Times
Los Angeles Times
by Veronique de RugyFebruary 19, 2026
AI-Generated Deep Dive Summary
The United States is grappling with a significant fiscal challenge: while federal tax revenues remain stable as a percentage of GDP, the country faces an escalating spending problem. The Congressional Budget Office (CBO) projects that by 2036, total federal spending will reach $94.6 trillion, far exceeding projected revenue of $70.2 trillion, resulting in a decade-long deficit of $24.4 trillion. This growing disparity underscores a pressing need for fiscal reform.
The primary driver of this imbalance is the increasing burden of entitlement programs and interest payments. By 2036, Social Security, Medicare, Medicaid, and net interest are expected to account for approximately 73% of total federal spending, leaving minimal funds for other critical areas such as defense and infrastructure. The cost of servicing the national debt is particularly concerning; by 2036, interest payments could consume over a quarter of all tax revenues.
Moreover, policymakers have exacerbated these challenges through an array of tax carveouts, which effectively function as spending mechanisms. These provisions, such as tax exemptions for tips and new credits for seniors, are projected to reduce federal revenue by $34 trillion over the next decade. This approach not only compounds fiscal pressures but also limits Congress's flexibility in addressing other pressing needs.
The implications of these trends are profound. Without meaningful reforms, the U.S. risks a spiraling national debt that could destabilize economic growth and diminish the government's capacity to fund essential services. For readers interested in understanding the broader impact on public policy and economic stability, this issue highlights the urgent need for comprehensive fiscal reform to ensure long-term financial health.
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Originally published on Los Angeles Times on 2/19/2026