Deficit-reduction efforts should avoid cuts in programs that serve low- and moderate-income populations.
States should not tie essential spending programs to unstable revenue sources.
The federal government must strive for long-term fiscal balance.
Efforts to reform entitlement spending should recognize the following factors:
A progressive income tax is the preferred method of raising revenue at the federal and state levels. Other sources, such as a consumption tax, may be needed.
Goods sold over the internet and through catalogs should be subject to the same sales tax treatment as goods sold by local brick-and-mortar retailers.
Higher levels of government should provide adequate resources when mandating functions to lower levels of government.
Services should be implemented and operated by the level of government that can most appropriately and efficiently deliver them.
Public-benefit programs should ensure that families headed by grandparents and other caregiver relatives receive sufficient support for economic security and well-being.
Any further efforts to address marriage penalties should be focused on two-earner couples and structured to avoid increasing marriage bonuses.
Policymakers should broaden the tax base by limiting tax preferences that do not efficiently achieve important policy goals.