Is It Time For A Balanced Budget Amendment?
One of several provisions of a debt ceiling agreement floated by Republicans is that both houses of Congress pass a Balanced Budget Amendment (BBA) resolution. Not a new idea - all states but Vermont currently have balanced budget requirements. Germany and Switzerland both have balanced budget provisions in their constitutions. In a letter to John Taylor of Caroline on November 26, 1798, Thomas Jefferson wrote:
“I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government; I mean an additional article taking from the Federal Government the power of borrowing. I now deny their power of making paper money or anything else a legal tender. I know that to pay all proper expenses within the year would, in case of war, be hard on us. But not so hard as ten wars instead of one. For wars could be reduced in that proportion; besides that the State governments would be free to lend their credit in borrowing quotas.”
Since 1975, 32 states have petitioned Congress to consider a BBA. Should two additional states issue similar petitions, some contend Congress would then be required to call a Constitutional Convention, in accordance with Article 5 of the US Constitution, to consider the BBA.
There is currently a joint resolution in Congress to pass a BBA.
JOINT RESOLUTION
Proposing an amendment to the Constitution of the United States relative to balancing the budget.
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled (two-thirds of each House concurring therein), That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States:
Article
Section 1. Total outlays for any fiscal year shall not exceed total receipts for that fiscal year, unless two-thirds of the duly chosen and sworn Members of each House of Congress shall provide by law for a specific excess of outlays over receipts by a rollcall vote.
Section 2. Total outlays for any fiscal year may not exceed 20 percent of the gross domestic product of the United States for the calendar year ending before the beginning of such fiscal year, unless two-thirds of the duly chosen and sworn Members of each House of Congress shall provide by law for a specific amount in excess of such 20 percent by a rollcall vote.
Section 3. Prior to each fiscal year, the President shall transmit to the Congress a proposed budget for the United States Government for that fiscal year in which total outlays do not exceed total receipts.
Section 4. No bill to increase Federal taxes shall become law unless approved by two-thirds of the duly chosen and sworn Members of each House of Congress by a rollcall vote.
Section 5. The Congress may waive the provisions of this article for any fiscal year in which a declaration of war is in effect. The provisions of this article may be waived for any fiscal year in which the United States is engaged in military conflict which causes an imminent and serious military threat to national security and is so declared by a joint resolution, adopted by a majority of the duly chosen and sworn Members of each House of Congress, which becomes law.
Section 6. The Congress shall enforce and implement this article by appropriate legislation, which may rely on estimates of outlays, receipts, and gross domestic product.
Section 7. Total receipts shall include all receipts of the United States Government except those derived from borrowing. Total outlays shall include all outlays of the United States Government except for those for repayment of debt principal.
Section 8. This article shall take effect beginning with the fourth fiscal year beginning after its ratification.
There have been discussions of changes to the supermajority requirements, from two thirds to three quarters, as well as whether 20% of GDP is the appropriate limit. Amendments have also been proposed requiring state ratification of all increases to the debt ceiling, which would be intended to supplement rather than replace the BBA and would be of little effect if the BBA were properly enforced – a belt and suspenders approach.
Criticism of a BBA largely centers around the Keynesian argument that deficit spending is necessary in times of recession, though this particular argument seems to be dulled if not entirely refuted by recent attempts to dampen the recession with historic annual deficits. Given the clear propensity for members of the Executive and Legislative branches, including many who claim to fly the flag of fiscal conservatism, to consider prior year spending as the budget baseline, expecting a change to that approach absent a Constitutional requirement seems unrealistic at best.
With current debt exceeding $14 trillion, any agreement to allow an increase should come with passage of the joint resolution. The President is right……..enough is enough.
http://en.wikipedia.org/wiki/Balanced_Budget_Amendment
Tags: John Galt
I would like to show my thanks to this writer just for rescuing me from this dilemma. As a result of exploring through the search engines and finding thoughts that were not beneficial, I was thinking my entire life was gone. Existing without the solutions to the problems you’ve solved by means of your main report is a serious case, and the kind that would have in a negative way affected my career if I had not come across your web page. That competence and kindness in handling everything was invaluable. I’m not sure what I would have done if I hadn’t come upon such a point like this. I can at this point relish my future. Thanks so much for this reliable and results-oriented guide. I won’t hesitate to suggest the blog to any person who wants and needs direction on this area.
Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Anyways, I’m definitely happy I found it and I’ll be book-marking and checking back frequently!
very nice post, i certainly love this website, keep on it
he blog was how do i say it… relevant, finally something that helped me. Thanks
I’m not sure why but this website is loading extremely slow for me. Is anyone else having this problem or is it a issue on my end? I’ll check back later and see if the problem still exists.
Just right with this write-up, I truly believe this website needs much more consideration. I’ll apt to be again to read a lot more, thank you for that info.
Extremely intriguing subject , thanks for posting .
The particular New york Diet can be an highly affordable and versatile eating better tool built for time expecting to loose fat along with naturally keep a healthful day-to-day life. la weight loss
hey great internet site i will definaely come back and see once again.
A Babyliss attributes the revolutionary porcelain concept. Earthenware engineering has not having concern has totally changed not just straighteners and being different irons.
Aw, this was a really quality post. In theory I’d like to write like this too – taking time and real effort to make a good article… but what can I say… I procrastinate alot and never seem to get something done.
Nice! Just wanted to respond. I thoroughly loved your post. Keep up the great work.
It’s exhausting to search out knowledgeable individuals on this matter, but you sound like you already know what you’re talking about! Thanks
“I’ve gone ahead and bookmarked http://state-of-the-union.forums.commonground13.us/2011/07/14/is-it-time-for-a-balanced-budget-amendment/comment-page-15 at Digg.com so my friends can see it too. I simply used State of The Union » Is It Time For A Balanced Budget Amendment? as the entry title in my Digg.com bookmark, as I figured if it is good enough for you to title your blog post that, then you probably would like to see it bookmarked the same way
Hi there! Do you know if they make any plugins to protect against hackers? I’m kinda paranoid about losing everything I’ve worked hard on. Any recommendations?
Today, while I was at work, my cousin stole my iphone and tested to see if it can survive a twenty five foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is entirely off topic but I had to share it with someone!
Today, while I was at work, my cousin stole my iphone and tested to see if it can survive a twenty five foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is entirely off topic but I had to share it with someone!
Well done for posting on this subject. There is not enough content posted about it (not particularly good anyway). It is pleasing to see it receiving a little bit more coverage. Cheers!
Good post. I learn something more challenging on totally different blogs everyday. It is going to at all times be stimulating to read content from different writers and observe a little bit one thing from their store. I’d favor to use some with the content on my blog whether you don’t mind. Natually I’ll provide you with a hyperlink in your web blog. Thanks for sharing.
Indoor Category – My Shed Plans Elite specializes on outdoor sheds construction and building.
Highly rated post. I be taught one thing totally new on completely different blogs everyday. Deciding on one . stimulating to read the paper content from other writers and be taught somewhat one thing from their website. I’d like to apply sure of this content on my blog you’re mind. Natually I’ll give a hyperlink here we’re at your web-site. Respect your sharing.
Greetings from California! I’m bored at work so I decided to check out your blog on my iphone during lunch break. I enjoy the information you present here and can’t wait to take a look when I get home. I’m shocked at how quick your blog loaded on my phone .. I’m not even using WIFI, just 3G .. Anyhow, excellent site!
The URL name, http://state-of-the-union.forums.commonground13.us/2011/07/14/is-it-time-for-a-balanced-budget-amendment, sounds perfect for this type of content.
I truly appreciate this post. I have been looking all over for this! Thank goodness I found it on Bing. You’ve made my day! Thanks again!
Sick and exhausted of acquiring minimal quantities of useless prospective consumers to your site? pretty well i need to notify you within the brand-new underground tactic which creates myself $900 each and every 1 day on 100% AUTOPILOT. I may pretty well in all probability be right here all 1 day and heading into component but why do not you simply researching their online internet internet site out? There may pretty well in all probability be considered a pretty good video clip clip that factors out everything. So in circumstance your severely contemplating making straightforward pretty difficult financial resources this could be the online internet internet site for you.
I usually do not even know how I ended up here, however I thought this write-up was great. I don’t know what person you’re however definitely you are going to a legendary blogger if you aren’t actually
Adios for now!
You have mentioned very interesting details! ps decent site.
visited my weblog thus i {got
Do you have a spam issue on this website; I also am a blogger, and I was wondering your situation; we have developed some nice practices and we are looking to exchange strategies with other folks, be sure to shoot me an e-mail if interested.
An interesting dialogue is value comment. I feel that it’s best to write extra on this topic, it won’t be a taboo subject however typically individuals are not sufficient to speak on such topics. To the next. Cheers