1. Tax old capital and provide incentives for new investment.

2. Fix the international tax system and limit provisions that facilitate corporate avoidance and income shifting.

3. Change the taxation of capital to promote more uniform taxation.

4. Reduce distortionary tax preferences in the individual tax code.

5. Encourage working-age citizens to enter the labor force and supply more labor.

6. Improve compliance

Finally, taxpayers need help complying with the tax code and tax laws need to be enforced. Tax compliance is often measured in terms of the “tax gap,” which is the difference between taxes owed and taxes paid.

Unfortunately, when it comes to tax compliance, there are no short cuts. Improvement requires a simpler tax system and more resources for the Tax Aministration to aid taxpayers and enforce the law.

Author: Brookings