Critical Elements of a Balanced Budget Amendment

The following elements are from Senator Mike Lee’s book The Freedom Agenda. Why a Balanced Budget Amendment Is Necessary to Restore Constitutional Government (2011).

1. The first element would prohibit Congress from spending more during any fiscal year than the federal gov’t “earns” during that year by collecting tax and other revenue.
2. The second element would prohibit Congress from spending during any fiscal year more than a fixed percentage (say 18%) of the GDP of the previous calendar year.
3. The third element would provide that Congress could circumvent either of the two limitations discussed above only by a two-thirds supermajority vote.
4. The fourth element would require Congress to approve any debt-ceiling increase by a supermajority vote.
5. A balanced budget amendment should require a supermajority vote in Congress to approve any tax increases.

All in all a good plan. Pretty commonsensical. Although I think if you have to raise the debt-ceiling it would be only to pay our soldiers and social security—ie necessary bills. Also,  I think a super-supermajority vote say 90% vote in Congress to approve any tax increases. He goes in more detail in his book about the plan.