Nov. 8--Americans want a tax system that is fair, simple and capable of raising the revenue we need to pay the nation's bills. The one we have fails on all three counts.

That's why President Obama will probably have to add comprehensive tax reform to his already jammed agenda.

The first imperative of reform is to restore progressivity, the keystone of a fairer tax system. Since there is a lot of fatuous talk about "socialism" in the air these days, it's worth noting that progressive taxation, which dates back to 1913, is a deeply American tradition.

It recognizes that our free enterprise system couldn't function properly without public laws, rules and investments in common goods like schools, roads, police and defense. Those citizens who reap the greatest rewards from our modern, mixed economy therefore have an obligation to give back, as Thomas Jefferson put it, in proportion to the bounty they have received.

At the same time, a progressive tax code lightens the tax burden on families of modest means, while creating incentives for them to advance by getting a good education, starting small businesses and saving for retirement.

In 2007, income and wealth inequality in America reached an all-time high (as measured by the Gini coefficient). Since a progressive rate structure offsets income inequality after taxes, President Bush's lowering of the top rates had the perverse effect of compounding today's growing disparities of wealth and power.

That's why we like a creative proposal by economists Robert Shiller and Len Burman called the "Rising Tide Tax System." Under this approach, the federal tax code would change according to economic circumstances. It would grow more progressive when, as now, the income of the richest is growing fastest and inequality is rising. Conversely, when inequality is dropping -- as we saw in the 1950s and '60s -- the tax structure would flatten out. Supply-siders should like that. Any takers?

TWT RELATED STORY: --ELLIS: Making our tax system more fair

In addition, here are four steps toward a fairer, simpler and more fiscally responsible federal tax system:

First, allow Bush's indefensible tax cut for the wealthiest families to expire in January 2011. That will return us to the same top marginal rate (39.5 percent) that was in place during the economic boom of the 1990s. It would also raise $53 billion in annual revenue, while keeping in place tax relief for low-income and middle-class families.

Second, eliminate tax giveaways to speculators.