Tax reform should focus on raising sufficient revenue and making 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 Aut
Additional new 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 an
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.
Every effort should be made to keep the threshold for the medical expense deduction as low as possible.
Congress and the states should extend the EITC to workers with low incomes regardless of age who have no dependents, provided they are not dependents themselves.
States and localities should carefully evaluate the incentives they offer to attract or retain business since such subsidies must be offset by higher tax burdens on consumers, oth