We need to reduce spending, raise revenue, and stimulate spending.
Documents on the IRS web site suggest tax rates are as low as they've been in 25 years; yet, there is great resistance to raising the tax rate on high-income individuals.
From 1997 to 2003 long-term capital gains were lowered from 28% to 15%, apparently to encourage investment. Currently we need spending more than investment. Since this tax provides an unbalanced wealth growth opportunity to those who are already wealthy, special tax rates for long-term capital gains should be discontinued.
Meanwhile, businesses need encouragement to start spending to stimulate economic growth. Thus, we should provide a massive tax break on any business/corporate gains which are reinvested in the company (spending good, hoarding bad).