Transition Series
Revenue Options Gao ID: OCG-89-3TR November 1, 1988GAO summarized issues relating to revenue options proposed to address the budget deficit.
GAO noted that revenue options include: (1) raising income tax rates; (2) broadening the income tax base; (3) enacting a new consumption tax; (4) increasing revenue from federal excise taxes; (5) increasing Internal Revenue Service enforcement of tax laws; and (6) increasing non-tax revenue sources. GAO believes that, since each option has both advantages and drawbacks, Congress and the administration should consider a combination of the options to reduce the federal deficit.