Tax reform should focus on raising sufficient revenue. It should make the tax system more equitable and efficient. Reforms should:
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.
Policymakers should not tax the actuarial value of Medicare or the value of other in-kind
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.
Lawmakers should maintain the tax-deferred status of employer-provided pensions as a critical way of promoting retirement savings.
The threshold for the medical expense deductionReduction in the amount o
Congress and the states should extend the EITCEarning Income Tax Credit
States and localities should carefully evaluate the effectiveness of the incentives they offer to attract or retain businesses.