IP-1-1995 (January 1995)
Author: Fred Holden
This Independence Institute Paper describes how the Republicans’ proposed 3% Solution and the Issue Paper’s proposed Citizen 1% Solution would provide an annual budget surplus to be used for reducing the public debt. The latter will balance the budget in 1998 and reduce today’s $4.7 trillion public debt back to 1981’s $1 trillion level by 2007. As the debt declines, so will each family’s yearly interest payments for it.
There are no cuts in federal spending in any of these proposals. Period. They differ in the rate of increase of government outlays, but each allows federal spending to increase annually.