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Policymakers should take action to raise revenues, promote energy conservation, and reduce climate change.

Carbon taxes or cap-and-trade systems that would increase energy-related and other prices must include measures to compensate for regional differences in energy costs and to adequately protect cons

Motor fuel taxes should be indexed for inflation and increased as necessary to fund transportation infrastructure and services.

Excise taxes on individual commodities, such as tobacco or alcohol, should at least keep pace with inflation. One way to do this is by levying them on an ad valorem basis. 

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. 

Property tax relief should be equitable, cost-effective, and targeted to homeowners with low and moderate incomes burdened by their property tax bill.