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Policymakers should not increase the taxation of Social Security benefits. People with low and moderate incomes should be exempt from paying tax on their benefits.

Policymakers should broaden the tax base by limiting tax preferences that do not efficiently achieve important policy goals.

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

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 the 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.

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

Limitations on the exclusions for other employer-provided benefits—such as life insurance, tuition, and parking—are a desirable method of broadening the tax base and making

Eligibility for the exclusion for employer-provided health insurance should be determined based on the employer’s coverage rules.