Dick Armey on Budget & Economy Former Republican Representative (TX-26)

Improve economy by encouraging savings via tax code

As a result, savings will rise, and the pool of capital will grow. And instead of punishing those who would build the proverbial better mousetrap with steeply progressive tax rates, as we do today, the Flat Tax slashes the to prate from 40% to 17%. <>The Flat Tax would make [taking investment and production] risks worthwhile, while making America a magnet for foreign investment capital. As a result, the income of the average American family of four would be approximately $4,300 higher in the year 2000 than it would be if we retained the current tax system-higher savings, more risk-taking, higher wages.

Demand a Balanced Budget amendment.

The Contract from America, clause 3. Demand a Balanced Budget:

Begin the Constitutional amendment process to require a balanced budget with a two-thirds majority needed for any tax hike.

Limit federal spending growth to per-capita inflation rate.

The Contract from America, clause 6. End Runaway Government Spending:

Impose a statutory cap limiting the annual growth in total federal spending to the sum of the inflation rate plus the percentage of population growth.

Supports balanced budget amendment & line item veto.

[As part of the Contract with America, within 100 days we pledge to bring to the House Floor the following bill]:

The Fiscal Responsibility Act:
A balanced budget/tax limitation amendment and a legislative line-item veto to restore fiscal responsibility to an out-of-control Congress, requiring them to live under the same budget constraints as families and businesses.