Like regulatory reforms, this idea could provide its own boost for private-sector confidence. The goal would be to radically simplify the tax code, keeping rates low while eliminating most deductions and loopholes.
Proponents say the outcome could be a "positive shock" as both businesses and consumers gain optimism and certainty about the outlook for taxes. Lower business tax rates, for one, could lure more investment to the US rather than other nations.
A tax deal would probably need to be crafted within the new "supercommittee" that is starting to work on ideas to reduce future federal deficits.