Introduction: This report from the Tax Policy Center argues that tax reform needs to be part of a sustainable response to our fiscal challenges. It looks at revenue reforms including broadening the income tax base, establishing a consumption tax, and bringing energy taxation in line with the modern economy.
An excerpt from the report: A sustainable budget deal will require both tax increases and spending cuts. … The United States has never repaired a major budget shortfall solely through spending reductions. Budget discipline has been achieved only when imposed on both sides of the ledger. … There are also equity reasons to include tax increases in a deficit-reduction plan. In particular, tax increases are the only way to ensure that high-income households share in the burden. Spending cuts simply do not have a very big impact on high-income households. If the burden is to be shared equitably, high-income households will have to face higher tax burdens.
Read the full report.