Fixing the Tax System: Support Fairer, Simpler, and More Adequate Taxation

Publication Date: January 2008

Publisher: Tax Policy Center

Author(s): William G. Gale

Research Area: Banking and finance

Keywords: Taxes, the Budget, and the Economy; Budget Issues; Tax Reform; Simplification and Administration

Type: Report

Abstract:

A good tax system raises the revenues needed to finance government spending in a manner that is as simple, equitable, stable, and conducive to economic growth as possible. But the challenge for the next President will be to make reform work not just in the abstract, but in the real world, where special interests often rule the roost. The next President should support reforms that would tax all income once (only) at the full tax rate, simplify and streamline the tax code, and, of course, raise sufficient revenues. This paper proposes a package of specific reforms to achieve these goals.