Professor Jacob Todres recently published an article entitled Fixing the Federal Budget Deficit: A Low-Tech Commonsense Approach in the Bloomberg/BNA Daily Tax Report. Here’s Jerry’s description of the proposal:
The article suggests an approach to prevent any further permanent increases to the federal budget deficit. Initially, Congress would be expected to enact annual budgets that are balanced. If Congress spends more in any year than it raises in revenues, it must pay back the excess during the next four years. If it fails to do so, then a fail-safe mechanism would be put in place that would automatically increase revenues in the fifth year by the amount of the excess spending.