How to improve the tax code is the subject of much debate.
Policymakers use the tax system not only to raise revenue but also to promote social policy goals.
Most states and localities impose a tax on retail sales. Such taxes generate a significant portion of state and local revenue.
The mainstay of local taxation is the property tax on real estate which is used to fund an array of state and local services, most notably public schools.
In addition to the main revenue sources of income, sales and property taxes, policymakers at each level of government have some other options at their disposal.
Concerns about the price of energy, dependence on imported energy, and the contribution of fossil fuels to climate change have resulted in increasing interest in taxes on en