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Grandparents and other relatives play an important caregiving role in family well-being. Support from extended family is especially vital in families with low incomes.

Policymakers use the tax system to raise revenue and to promote social policy goals. For example, they may want to encourage desirable behaviors, such as home ownership.

How to improve the tax code is the subject of much debate. Proponents of reform often call for increasing fairness and simplicity.

Public-benefit programs should ensure that families headed by grandparents and other caregiver relatives receive sufficient support for economic security an

Any further efforts to address marriage penalties should be targeted to two-earner couples and structured to avoid increasing marriage bonuses.

There are two main ways for governments to collect taxes. One is by taxing income directly. This is known as an income tax. The other is taxing only income that is spent.

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.