by Scot Faulkner
Rep. Robert Dold, Jr., R-Ill.; Rep. Charlie Bass, R-N.H.; Rep. Steven LaTourette, R-Ohio; and Rep. Daniel Lipinski, D-Ill. hold a news conference to call on Congress to work together to address the looming "fiscal cliff." Credit: Flickr/Lingjing Bao/Talk Radio News.There are three legs to the stool of federal fiscal solvency -- cutting spending, entitlement reform, and revenue generation. Few of the Washington power players are realistically discussing any of these, but revenue has generated the most polarized rhetoric.All our lives are impacted by the way our federal government raises the $2.9 trillion it needs to function. That is why it is important that any revenue element of a “fiscal cliff” deal is weighed not only for the amount, but for its tax incidence.Tax incidence charts the various ways government amasses its revenue and how these ways impact individuals, industries, demographics, and geography. Our current progressive income tax system and the strategic reform proposals of the flat tax, fair tax, and Value Added Tax (VAT) all generate significantly different impacts on our individual spending habits and our overall national economy.