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Tax reform should focus on raising sufficient revenue and making the tax system more equitable and efficient. Reforms should:

States should increase the progressive nature of their income tax systems by exempting from state tax rolls people with income below the

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.

States with income taxes should allow credits for taxes paid by their residents to other states so that no taxpayer is subject to double taxation.

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.