If you want to stimulate the economy, lower taxes not raise them.
However, to solve the whole tax issue let's change the tax code all around - flat tax or fair tax. A flat tax is a consumption tax imposed when money is earned. Various sales taxes like the FAIR Tax are imposed when money is actually consumed. Each has the same consumption tax base. Tax reform should not be an excuse for a net tax increase. There should be no double taxation of savings. I favor expanding tax-free savings accounts like 401(k) plans, IRAs, 529 college savings plans, and health savings accounts (HSAs). I support permanently killing the death tax.
I strongly oppose a value-added tax (VAT). VAT is a type of sales tax which is embedded in the price of a good and passed along at all stages of production to the consumer. VATs are a bad idea for America. In Western Europe, VATs have grown from a small 5 percent tax in 1970 to an average 20 percent today. The tax burden has grown dollar-for-dollar with the growth of a VAT.
Many on the Left believe that the government isn't collecting enough in tax revenue, and their term for this supposed underpayment is the "tax gap." One preferred method of the Left to close this "tax gap" is to move toward government preparation of tax returns. This creates a conflict of interest for the IRS, since the revenue collector would also assert the amount of tax owed. This is a backdoor tax increase that counts on taxpayers not being able to fight City Hall.