More than 30 recommendations were made by the Silk Commission, which believes that a referendum should be held in the future to decide on whether to pass on decision-making to local ministers.
And it could mean that the Welsh government shares the tax yield from 2020, with the Treasury getting half and the Assembly the rest.
The Commission's chairman, Paul Silk, explained: "Our proposals would provide the Welsh government with an important set of fiscal levers and would enable political parties in Wales to offer people real fiscal choices.
"What we are recommending is significant and historic. It will give Wales its own tax and borrowing system for the first time."
Only in October, Mayor of London Boris Johnson argued that the capital should be able to decide whether to bring in taxes to allow it to fund major schemes.
Posted by Thomas Fletcher