President Obama has urged Congress to begin working on reforming the federal tax system. In my opinion, true reform would come in the form of either replacing the income tax with a national sales tax or moving to a completely flat income tax which utilizes the same rate for all taxpayers and all forms of income. Obvious, neither of these will happen anytime in the near future.
However, I believe Congress can and should make the federal income tax a lot flatter by the end of this year. If that means eliminating most tax deductions, credits, exemptions, and loopholes, so be it, as long as tax rates are lowered. In addition, they should make sure that all income earners pay at least a little bit in taxes. They should also reduce the number of rates to no more than two or three.
I would suggest a rate of 6% for income up to $20,000, 12% for income ranging from $20,001 to $100,000, and 18% for all income over $100,000. At any rate (pun intended), a flatter tax such as this would be much better than no tax reform at all. Sticking with the status quo would be the worst of all possible options.