The Four Percent Solution to Runaway Federal Spending

Publication Date: April 1991

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Scott A. Hodge

Research Area: Banking and finance

Keywords: Taxes

Type: Report

Coverage: United States

Abstract:

The Four Percent Solution would be an honest attempt to control the federal budget. It would avoid the need for future tax hikes and even allow for substantial tax relief. The only pain inflicted by this policy is on the big spenders in Washington and the special interest groups who repeatedly win backing for their special and costly programs. By limiting the growth of total domestic spending to just four percent per year, the average American family each year could receive $1,400 in tax relief for every dependent child.