Scales Tip Among Senate GOP for Balanced Budget Amendment
Today Senate Republicans unveiled legislation (S.J. Res 10) to adopt a balanced budget amendment to the U.S. Constitution that has the support of all 47 members of the conference. Republicans had been previously split between two competing versions (S.J. Res. 3 and S.J. Res. 5). The united group will now work on gaining Democratic support. Senate Minority Leader Mitch McConnell (R-KY) wants a vote on the proposal to accompany a vote to increase the debt limit.
Provisions of the new proposal include:
- mandating that the president submit a balanced budget each fiscal year
- federal spending each fiscal year is capped at 18 percent of GDP (a 2/3 majority vote of both houses is required to override this provision except in times of declared war, when a simple majority suffices, and a 3/5 vote is needed during certain military conflicts that are not officially wars)
- a 2/3 vote of both houses is required to run a “specific deficit” in any given fiscal year (a simple majority is required during a declared war and a 3/5 vote during certain military conflicts that are not officially wars)
- a 2/3 vote of both houses is required for any bill that “that imposes a new tax or increases the statutory rate of any tax or the aggregate amount of revenue”
- a 3/5 vote is required to raise the debt limit except during declared war
| Bill & Sponsor | Basic Provisions | Raising Debt Limit Requires: |
Raising Taxes Requires: |
Takes Effect | Other |
|
Rep. Goodlatte (R-VA) |
Spending cannot exceed revenue, unless approved by 3/5 majority President must submit balanced budget to Congress |
3/5 majority | 3/5 majority | 2nd FY after ratification, or 1st FY after Dec 2016 |
Caps federal spending at 20% of GDP, unless approved by 2/3 majority Exemption for military conflicts |
|
Rep. Goodlatte (R-VA) |
Spending cannot exceed revenue, unless approved by 3/5 majority President must submit balanced budget to Congress |
3/5 majority | Simple majority | 2nd FY after ratification, or 1st FY after Dec 2016 | Exemption for military conflicts |
|
Rep. Buchanan (R-FL) |
Spending cannot exceed revenue, unless approved by 3/5 majority President must submit a balanced budget to Congress |
3/5 majority | Simple majority | 2nd FY after ratification, or 1st FY after Dec 2016 | Exemption for military conflicts and natural disasters |
|
Rep. Cuellar (D-TX) |
Spending cannot exceed revenue, unless approved by 3/5 majority President must submit a balanced budget to Congress |
Not specified | Not specified | 2nd FY after ratification, or 1st FY after Dec 2020 |
Balanced budget must be achieved without reducing disbursements from OASI or DI Trust Funds Exemption for military conflicts |
|
Rep. Broun (R-GA) |
Spending cannot exceed revenue, unless approved by 2/3 majority President must submit balanced budget to Congress |
2/3 majority | 2/3 majority | 2nd FY after ratification |
Total spending cannot exceed previous years' plus population growth and inflation Any surplus revenue must be returned to taxpayers Exemption for declarations of war |
|
Rep. Emerson (R-MO) |
Congress and President must agree on an estimate of total revenue through a joint resolution-Congress cannot spend more than this level, unless approved by 3/5 majority President must submit a balanced budget to Congress |
3/5 majority | Simple majority | 2nd FY after ratification |
Budget deficits must be paid for the following fiscal year Exemption for declarations of war |
|
Rep. Terry (R-NE) |
Spending cannot exceed revenue, unless approved by 3/5 majority President must submit a balanced budget to Congress |
3/5 majority | 3/5 majority | 2nd FY after ratification | Exemption for military conflicts |
|
Sen. Hatch (R-UT) & Sen. Cornyn (R-TX) |
Spending cannot exceed revenue, unless approved by 2/3 majority President must submit a balanced budget to Congress |
Not specified | 2/3 majority | 4th FY after ratification |
Caps federal spending at 20% of GDP, unless approved by 2/3 majority Exemption for military conflicts or upon 2/3 majority approval |
|
Sen. Lee (R-UT) & Sen. Kyl (R-AZ) |
Spending cannot exceed revenue, unless approved by 2/3 majority President must submit a balanced budget to Congress |
2/3 majority | 2/3 majority | 2nd FY after ratification | Caps federal spending at 18% of GDP, unless approved by 2/3 majority |
|
Sen. Udall (D-CO) & Sen. Shelby (R-AL) |
Spending cannot exceed revenue, unless approved by 3/5 majority | Not specified | Not specified | 1st FY after ratification |
Caps federal spending at 20% of previous year's GNP, unless approved by 3/5 majority Exemption for declarations of war |
|
Rep. Buchanan (R-FL) |
Spending cannot exceed revenue, unless approved by 2/3 majority |
3/5 majority | 2/3 majority | 5th FY after ratification |
Caps spending at 18% of GDP unless approved by 2/3 majority Exemption for declaration of war *H.J. Res 52 is the House version of S.J. Res. 10 |
| S.J. Res. 10 | Spending cannot exceed revenue, unless approved by 2/3 majority | 3/5 majority | 2/3 majority | 5th FY after ratification |
Caps spending at 18% of GDP unless approved by 2/3 majority Exemption for declaration of war *S.J. Res. 10 is identical to H.J. Res. 52 |
|
Rep. Schweikert (R-AZ) |
Spending cannot exceed revenue, unless approved by 2/3 majority | 2/3 majority | 2/3 majority | Not specified | Caps spending at 18% of GDP unless approved by 2/3 majority |
|
Rep. DeFazio (D-OR) |
Spending cannot exceed revenue, unless approved by 3/5 majority President must submit a balanced budget to Congress |
Not specified | Simple majority (to reduce or increase revenue) | 2nd FY after ratification, or 1st FY after Dec 2016 |
Exemption for declaration of war Social Security disbursements cannot be reduced to balance the budget |
| H.J. Res. 73 |
Spending limited to adjusted revenues from three prior years Allows deficits during recessions |
Not specified | Not specified | Begins 10-year transition no sooner than 90 days after ratification |
3/4 requirement to waive enforcement in an emergency |
|
Sen. Mark Udall (D-CO) |
Spending cannot exceed revenue, unless approved by 3/5 majority President must submit a balanced budget to Congress |
Not specified | Not specified |
Exemption for declaration of war Creates a Social Security lockbox that protects SS revenue and outlays from the balanced budget requirement Prohibits Congress from enacting tax breaks for those earning over $1 million a year unless the budget is in surplus |
Achieving consensus on one approach is just the first of many obstacles facing a balanced budget amendment. Amending the Constitution requires a 2/3 majority vote in each house of Congress and then 3/4 of the states must ratify it.
