Istook Release on Balanced Budget Amendment
Istook Release on Balanced Budget Amendment
- AuthorsIstook, Rep. Ernest J., Jr.
- Institutional AuthorsHouse of Representatives
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2002-9045 (7 original pages)
- Tax Analysts Electronic Citation2002 TNT 73-30
Congressman
Ernest J. Istook, Jr.
April 11, 2002
[1] Washington, DC -- Congressman Ernest Istook (R-OK) introduced a Constitutional amendment requiring Congress to balance the budget today, H.J. Res 86, to assure that deficit spending will end after the current national emergency. The bill has 117 original cosponsors.
[2] In 1995, the U.S. House of Representatives approved an identical Balanced Budget Amendment to the Constitution, as part of the "Contract With America," but the measure twice failed in the Senate by a single vote.
[3] "We must spend whatever it takes to protect America in this time of crisis. But that's no excuse for loading up the budget with unrelated extra spending, or to continue deficit spending after we conquer this crisis. It was a long, hard struggle to balance the budget, and it should stay balanced during normal times. We owe that to our kids and grandkids, so their futures will be bright," said Istook.
[4] The measure includes an exception for times of national emergency, but would require 3/5ths approval of both houses of Congress in order for the federal government to spend more in a fiscal year than it receives during peacetime.
[5] "No ordinary law can restrain Congress, because Congress has the power to remove that safeguard whenever it wishes," said Istook. "We need to hold every member accountable. A vote on a Balanced Budget Amendment will show who is serious about balancing the budget and who is just using the current crisis as an excuse for more spending."
[6] A Constitutional amendment requires a 2/3rds majority of both Houses of Congress and radification by 3/4ths of the states. If passed, the measure would take effect two years after radification by the states.
H.J. Res. 86:
The Balanced Budget Amendment.
The Balanced Budget Amendment is the identical language
("Contract With America") that the House approved in 1995,
and that failed by one vote in the Senate in 1997.
[7] MAKE OUR SUCCESS PERMANENT: Congress balanced the budget in 1997 for the first time in 30 years. Since then, over $400-billion in debt has been retired. Will a balanced budget (in peacetime) be a permanent legacy of this Congress, or just a temporary episode? For our children's sake, we must make it a permanent fixture. We must assure that no future Congress can repeat the enormous deficit-spending that generated our national debt.
[8] END THE POSTURING: Everyone in Congress has claimed credit for the balanced budget. This amendment will focus attention and show the American people who is committed to the principle, and who is only pretending. Those who truly support a balanced budget will vote to make it permanent during times of peace.
[9] ONLY CONSTITUTIONAL PROTECTION IS FULL PROTECTION: Americans are rightfully cynical when they hear everyone posturing, claiming they want to protect the balanced budget. But removing that protection is, always just a simple majority vote away. Gramm-Rudman, sequestration, the Budget Act, the lockbox, and every other non-constitutional protection can all be evaded by simple legislation.
[10] MAKE EVERYONE ACCOUNTABLE: During the 104th Congress, the BBA passed the House in 1995 by 300-132. But the House has not voted again since 1995. (The Senate in 1997 cast a 66-34 vote for the BBA -- just short of the needed two-thirds.) 177 of the House Members who voted for the BBA in 1995 remain in the House, as do 86 who voted against it. In the 107th Congress, we have 172 Members who have never been held accountable on this, but who need to be.
[11] WHAT ABOUT NATIONAL EMERGENCIES? When there is a declared war or military conflict jeopardizing national security (as declared by Congress), a deficit is permitted.
[12] For further information, contract Representative Istook's Office at (202) 225-2132
Legislative Summary for the Balanced Budget Amendment
Section 1 provides that total outlays for any fiscal year shall not exceed total receipts for that year unless a supermajority (3/5ths of both Houses of Congress) provide for deficits to be permitted. That is 261 House members and 60 Senators. (This would permit deficit spending during recessions only if 3/5ths of both Houses of Congress and the President agreed to this spending.)
Section 2 provides that the National Debt Limit requires a specific vote by each body, with a 3/5ths vote of each body.
Section 3 provides that the President of the United States is required to submit a balanced budget to Congress.
Section 4 provides that no bill to increase taxes will become law without a majority of the whole number of each House approving it, by roll call vote. (218 in the House of Representatives, 51 in the Senate.)
Section 5 provides that Congress may waive this amendment for either a declaration of war or when the United States is involved in a military conflict that causes imminent and serious military threat to national security and is so declared by joint resolution, as has currently been done with the war on terrorism.
Section 6 provides that Congress shall enforce the BBA and shall enact such laws as are necessary for that enforcement, and may rely on estimates of outlays and receipts in conducting that enforcement.
Section 7 provides that total receipts and outlays exclude monies from borrowing, or the repayment of debt.
Section 8 provides the article becomes effective the 2nd fiscal year after its ratification by the states. (Three-fourths or thirty eight of the states must ratify it.)
Text of the Balanced Budget Amendment
107th CONGRESS
2d Session
H.J. RES. ___
IN THE HOUSE OF REPRESENTATIVES
Mr. Istook introduced the following joint resolution; which was referred to the Committee on ______ JOINT RESOLUTION
Proposing a balanced budget amendment to the Constitution of the United States.
Resolved by the Senate and House of Representatives or 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 within seven years after the date of its submission for ratification:
"Article --
"Section 1. Total outlays for any fiscal year shall not exceed total receipts for that fiscal year, unless three-fifths of the whole number of each House of Congress shall provide by law for a specific excess of outlays over receipts by a rollcall vote.
"Section 2. The limit on the debt of the United States held by the public shall not be increased, unless three-fifths of the whole number of each House shall provide by law for such an increase 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 revenue shall become law unless approved by a majority of the whole number of each House 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 whole number of each House, which becomes law.
"Section 6. The Congress shall enforce and implement this article by appropriate legislation, which may rely on estimates of outlays and receipts.
"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 second fiscal year beginning after its ratification.".
Original Cosponsors of the Balanced Budget Amendment
Aderholt Robert AL04
Akin W. MO02
Bachus Spencer AL06
Baker Richard LA06
Barr Bob GA07
Bartlett Roscoe MD06
Barton Joe TX06
Bass Charles NH02
Bilirakis Michael FL09
Bishop Sanford GA02
Blunt Roy M007
Boehner John OH08
Bono Mary CA44
Boozman John AR03
Brady Kevin TX08
Brown Henry SC01
Bryant Ed TN07
Calvert Ken CA43
Cannon Chris UT03
Cantor Eric VA07
Castle Michael DE00
Chabot Steve OH01
Chambliss Saxby GA08
Combest Larry TX19
Condit Gary CA18
Crane Philip IL08
Crenshaw Ander FL04
Culberson John TX07
Cunningham Randy CA51
Davis Jo Ann VA01
Deal Nathan GA09
DeLay Tom TX22
DeMint Jim SC04
Doolittle John CA04
Duncan John TN02
Dunn Jennifer WA08
Edwards Chet TX11
English Phil PA21
Fletcher Ernie KY06
Forbes J.Randy VA04
Ganske Greg IA04
Gekas George PA17
Goode Virgil VA05
Goodlatte Bob VA06
Graham Lindsey SC03
Graves Sam M006
Gutknecht Gil MN01
Hall Ralph TX04
Hansen James UT01
Hart Melissa PA04
Hastings Doc WA04
Hayworth J. AZ06
Hefley Joel C005
Herger Wally CA02
Hilleary Van TN04
Hoekstra Peter MI02
Isakson Johnny GA06
Issa Darrell CA48
Istook Ernest OK05
Jenkins William TN01
John Christopher LA07
Jones Walter NC03
Keller Ric FL08
Kennedy Mark MN02
Kerns Brian IN07
Kingston Jack GA01
Kirk Mark IL10
Kolbe Jim AZ05
LaHood Ray IL18
LaTourette Steven OH19
Lewis Ron KY02
Linder John GA11
Lucas Frank OK06
Manzullo Donald IL16
McCrery Jim LA04
McKeon Howard CA25
Miller Jeff FL01
Miller Dan FL13
Myrick Sue NC09
Nethercutt George WA05
Northup Anne KY03
Norwood Charlie GA10
Nussle Jim IA02
Osborne Tom NE03
Otter C. ID01
Pence Mike IN02
Peterson John PA05
Pitts Joseph PA16
Platts Todd PA19
Pombo Richard CA11
Pryce Deborah OH15
Radanovich George CA19
Regula Ralph OH16
Rehberg Dennis MT00
Rohrabacher Dana CA45
Royce Edward CA39
Ryun Jim KS02
Schaffer Bob C004
Schrock Edward VA02
Sessions Pete TX05
Shimkus John IL20
Shuster Bud PA09
Simmons Rob CT02
Simpson Michael ID02
Steams Cliff FL06
Stenholm Charles TX17
Sweeney John NY22
Tancredo Thomas CO06
Terry Lee NE02
Thune John SD00
Tiberi Patrick OH12
Toomey Patrick PA15
Walden Greg OR02
Warnp Zach TN03
Weller Jerry IL11
Wicker Roger MS01
Wilson Joe SC02
2) Seniors: The debt is THE threat to Social Security -- and to Medicare and other priorities. Interest payments are the 2nd-largest single item of federal spending ($360 billion in FY 2001), nipping at the heels of Social Security, the largest ($433 billion). Controlling the debt will make it more likely that the government will have the cash it needs to meet future obligations and priorities.
3) Interest Savings to Families: A typical family has saved $672 or more in interest expenses every year because balanced budgets have reduced inflation pressure and interest costs -- $248 a year saved on a $50,000 mortgage, $314 on a student loan and $109 on a typical auto loan.
4) Jobs and Economic Growth: Since 1997, nearly 13 million jobs have been created, and nonresidential investment has increased 52.2%.
5) Lower Taxes: Balancing the Budget has made it possible for the Congress to pass the largest tax cut in recent history.
6) The People: Public opinion surveys consistently show that 70-80% of the population support passing a Balanced Budget Amendment to the Constitution.
7) Keeping Our Wealth at Home: Interest on the federal debt is largely a transfer from middle-income taxpayers to big institutions, wealthy individuals and foreign investors. In FY 2001, the U.S. Government sent $127 billion overseas in interest payments on Treasury securities held by foreign investors. It was seven times Uhe amount of total spending on all programs in the "International Affairs" budget function and is the largest "foreign aid" program in history.
8) We Save on Interest: Balancing the budget from 1996 to 2001 has reduced federal debt service costs by a total of $35 billion, and improved government revenues and interest rate savings by $17 billion in FY 2001 alone.
9) Letting the Constitution Work and the People Decide : A vote for the BBA in Congress lets the people and their state legislatures make the ultimate decision. Three- fourths (38) of the states must ratify any amendment to add it to the Constitution. Sending the BBA to the states would begin a needed debate -- from state capitols to coffee shops -- on the appropriate size and role of the federal government.
10) It's the American Way: Almost every state is already required to balance their budget; Congress should do the same.
United States House of Representatives
April 11, 2002
[13] "When Republicans took control of the House, we made a balanced budget one of our top priorities. In fact, a Balanced Budget Amendment was part of the original Contract with America. After several years now as the majority party, we remain convinced that a balanced budget that funds our priorities and keeps spending under control is in the best interest of our nation and our nation's taxpayers. I look forward to working with Congressman Istook and the other co-sponsors as this bill makes its way through the regular order of legislative business." -- Speaker J. Dennis Hastert
- AuthorsIstook, Rep. Ernest J., Jr.
- Institutional AuthorsHouse of Representatives
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2002-9045 (7 original pages)
- Tax Analysts Electronic Citation2002 TNT 73-30