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Istook Release on Balanced Budget Amendment

APR. 11, 2002

Istook Release on Balanced Budget Amendment

DATED APR. 11, 2002
DOCUMENT ATTRIBUTES
  • Authors
    Istook, Rep. Ernest J., Jr.
  • Institutional Authors
    House of Representatives
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2002-9045 (7 original pages)
  • Tax Analysts Electronic Citation
    2002 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

 

Top Ten Reasons to Support the Balanced Budget Amendment

 

 

1) Children: We should not burden our children and grandchildren with our debt. Keeping the budget balanced and paying off the debt ensures their prosperity.

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.

Office of the Speaker

 

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
DOCUMENT ATTRIBUTES
  • Authors
    Istook, Rep. Ernest J., Jr.
  • Institutional Authors
    House of Representatives
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2002-9045 (7 original pages)
  • Tax Analysts Electronic Citation
    2002 TNT 73-30
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