Tax Reform

FederalState

Tax reform should focus on raising sufficient revenue. It should make the tax system more equitable and efficient. Reforms should: 

  • increase the system's revenue-raising capacity, including broadening the tax base; 
  • maintain ability-to-pay as the standard of tax equity; 
  • result in a distribution of tax burdens that is no less progressive than the current distribution under the individual and corporate income taxes; 
  • avoid negative impacts on important social goals such as retirement savings and health insurance coverage; 
  • reduce distortions in the tax code; 
  • reduce the administrative record-keeping burden on American taxpayers; 
  • be evidence-based with respect to economic development effects; 
  • encourage American competitiveness and job creation; and 
  • provide appropriate relief for people during the transition from one tax policy to another.