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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. 

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. 

States should adequately fund and broaden their methods of financing public education. Education financing should be shifted from property taxes to less regressive forms of taxation. 

States should generally avoid arbitrary limitations on property taxes.

Property taxes should be equitable. 

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.