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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. 

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. 

When considering bond financing, state and local policymakers should: 

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.