Need advice with a child that hits a lot!!!

Kendra
So my son just turned 4.  He has been hitting for some time now. I'm running out of ways to try to get him to stop hitting.  I have tried hitting back just enough to show him that it hurts people but most of the time he just laughs at me.  I really don't want to use hitting back I feel it just teaches him it's ok.  Time out doesn't seem to help either. Bee have taken his absolute favorite toys away and now I'm just desperate!!! Any ideas????