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Passing responsibilities down to lower levels of government should be undertaken primarily to place services closer to the people being served and to maximize administrative

There are two main ways for governments to collect taxes. One is by taxing income directly. This is known as an income tax. The other is taxing only income that is spent.

Policymakers should expand opportunities for people to volunteer in their communities. This includes older adults and people with disabilities.

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

States should increase the progressive nature of their income tax systems.

Reforming business taxes, such as corporate tax or a tax on the financial industry, should be considered in any effort to raise additional revenue. 

States with income taxes should allow credits for taxes paid by their residents to other states so that no taxpayer is subject to double taxation. 

Currently, some types of income are either taxed at lower rates than ordinary income or are exempt from taxation to some degree.

In general, only cash income is subject to income tax. In-kind benefits—benefits that are received as goods or services rather than as cash—are not.

Policymakers should not tax the actuarial value of Medicare or the value of other in-kind benefits (see also