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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.

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

Policymakers should not increase the taxation of Social Security benefits and should exempt people with low and moderate incomes from paying tax on their benefits.

A progressive income tax is the preferred method of raising revenue at the federal and state levels but other sources, such as a consumption taxes, may be needed.

Although state and local sales taxes are major revenue raisers, they are regressive.

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 for the purposes of reducing their regressive nature and avoiding pyramiding.

Goods sold over the Internet and through catalogs should be subject to the same sales tax treatment as goods sold by traditional brick-and-mortar retailers.

To ensure equity in property taxation, assessors should use fair-market value as the starting basis for determining property values, so that owners of similar properties in

Property tax relief should be equitable, cost-effective, and targeted to homeowners with low and moderate incomes burdened by their property tax bill.