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Lawmakers should maintain the tax-deferred status of employer-provided pensions as a critical way of promoting retirement savings. 

Tax credits and deductions are two ways to reduce tax liability. Tax credits directly reduce the amount of taxes owed, dollar-for-dollar. They benefit all those who owe tax.

The threshold for the medical expense deduction should be kept as low as possible.

Congress and the states should extend the EITC to workers with low incomes who have no dependents regardless of age, including those ages 65 and older, provided they are not dependents themselves.

States and localities should carefully evaluate the effectiveness of the incentives they offer to attract or retain businesses. 

The federal estate tax was enacted in 1916 to raise revenues. Its intent was also to reduce the concentration of wealth, thus increasing economic equality.

Policymakers should retain estate and inheritance taxes as important components of our tax structure. 

Federal and state estate and inheritance taxes should affect only the largest transfers. 

State and local governments issue bonds to finance important projects that meet social goals and benefit communities. Bonds are attractive because they provide financial flexibility.

When considering bond financing, state and local policymakers should: