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

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 benefits (see also

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 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, provided they are no

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