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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. 

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. 

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

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

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 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 benefits (see also

Limitations can be set on the exclusions for other employer-provided benefits such as life insurance, tuition, and parking.

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.