I've made some of these suggestions before, and have yet to read a compelling argument for why they are off base.

America needs to raise revenue and these are the means by which I think we will realize geometrically increased benefits:

Raise taxes on capital gains to the eventual level of 35%. Go from 15 to 20% in year one, 20-24% in year two, 24-28% in year three and a 1% increase each of the next seven years. Capital gains are the monies which are earned without "working". In a decent economy a blindfolded investor can throw a dart and hit a stock or bond winner. Or, if times are good and you don't like darts you can give your money to a reputable broker and earn a decent profit. Of course it is in everyone's best interest to get back to a that kind of economy, and especially for those investors who love to succeed without working. With a front loaded increase in capital gains taxes, investment companies will be almost forced to put billions back into markets asap in an effort to pay lower taxes on their profits. That cash infusion will in itself pump up the economy significantly, That's a geometric benefit.

Revise the tax code for individuals to eliminate the rest of the Bush tax cuts and establish a higher and graduated percentage increase on incomes higher than $350,000. (politically, $250k is a bad place to start. We've heard many sob stories of how those folks would be devastated by any tax increase. If it still alarms you that this would be a real hardship even for the $350k'ers, I'd agree to start even a little higher). This step is the beginning of an effort to get back to the healthy American concept that "all men are created equal". The remaining members of a dwindling middle class just can't understand why the local bank president "earns" $2.3 million, or why Wall Street financiers have been given record bonuses during a struggling, high employment economy. Those who struggle should have the consolation of knowing that large segments of those bonuses go back to "We, the people." So part of the geometric benefit here is a morale boost for the masses. The continued economic success of our nation requires a level of confidence and a positive attitude. The current situation encourages anger, distrust, cheating and hoarding.
As a real life example, my accountant admits he processes tax returns for scores of people who earn amounts above $250k annually. He claims that not a single one of those clients complains about paying their taxes. They are casual, they smile, and say things like "isn't this a great country". On the other hand, he watches many who earn far less pay greater percentages of their incomes and leave his office in great distress.
Here is one of the most important justifications for higher taxes for the wealthy: our forefathers as well as us, and our collective effort, regardless of our station in life, have made it possible for people to become wealthy. It is a blessing for us to be here in stable America, still unlike most other places, the land of opportunity.

Revise the tax code for businesses to eliminate the traditional loopholes for mega corporations and replace them with loopholes for companies which operate here, do research, and hire additional workers. The goals are to entice companies to headquarter and grow here with generally lower corporate taxes, but arrived at through incentives and low interest loans. Reduce payroll taxes to enhance employment. Since the banks are hoarding funds, set up a government operated low interest loan system for business expansion. Supporting the low interest level will force the banks to match that level, which will be an effective way for the Fed to control inflation. Also, let contracts to rebuild the country's infrastructure, and hire more construction watchdogs to eliminate waste. Increase the legal penalties for abusers. Pay for the work with the increased revenues. The extra benefit is an infrastructure which facilitates even more productivity.

My contention is that the costs of accomplishing the above would be more than offset by the revenues realized, and would, in toto, sharply reduce the deficit, increase employment and increase national productivity.

If you respond I'd appreciate it if you focus just on this topic, even though budget issues in the areas of defense, entitlements, etc. are huge.