To slow down runaway federal spending, Sen. Orrin Hatch, R-Utah, co-sponsored a bill introduced Thursday that would limit federal spending to increase no more than 4 percent a year.
"If the `Four Percent Solution' were enacted this year, we could balance the budget by 1995 with no more new taxes," Hatch said about the bill introduced by Sen. Conrad Burns, R-Mont.Hatch said the bill would roughly allow the federal government to keep up with the rate of inflation, but no more.
"We are now looking at a federal deficit of at least $206.7 billion for fiscal 1991," Hatch said. "That is three times the size of the deficit target we were shooting for just a year ago."
The bill would also remove a provision from last year's budget summit agreement requiring generally that any spending increase must be offset by a decrease in spending elsewhere - which Hatch said is an incentive to raise taxes.
"There would be no reason for the tax-and-spend advocates in Congress to raise taxes if spending could not be increased as well," Hatch said.