Excerpted from the Cato Institute's Handbook for Policy Makers:
Congress should:
* extend recent tax rate cuts for individual income, dividends, and capital gains;
* simplify the individual income tax by installing rates of 15 and 25 percent and repealing virtually all deductions and credits;
* cut the federal corporate income tax rate from 35 percent to 15 percent;
* turn Roth individual retirement accounts into all-purpose savings accounts by liberalizing rules on contributions and withdrawals;
* replace business depreciation with capital expensing;
* take these reforms further by replacing the income tax with a consumption-based flat tax at 15 percent; repeal the individual and corporate alternative minimum taxes; and
* repeal the estate tax.