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.
Due to their regressive nature, raising state and local sales taxes should not be the first choice for increasing tax revenues.
States and localities should include services in the taxable base to reduce regressivity and improve neutrality.
Exemptions from state retail sales taxes should be narrowly designed to reduce their regressive nature and avoid pyramiding.
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.
Public-benefit programs should ensure that families headed by grandparents and other caregiver relatives receive sufficient support for economic security and well-being.
Policymakers should broaden the tax base by limiting tax preferences that do not efficiently achieve important policy goals.
Providers of credit- and debt-related services should be licensed in each state in which they operate.
Policymakers should require providers of credit- and debt-related services to provide written contracts to consumers.