By using this website you allow us to place cookies on your computer. Please read our Privacy Policy for more details.
Publication Date: September 2002
Publisher: Heritage Foundation (Washington, D.C.)
Author(s): Daniel J. Mitchell
Research Area: Banking and finance
Keywords: Budget
Type: Report
Abstract:
After nearly 30 consecutive years of deficit spending, Congress soon will vote on whether to add a balanced budget amendment to the Constitution. Should an amendment be approved by Congress and ratified by the states, the fiscal policy changes could be enormous. The objective of imposing such discipline is to balance the budget by reducing the size of government. A strong provision to limit taxes--such as a two-thirds supermajority requirement to raise taxes--would help ensure that politicians could not evade the amendment’s intent by simply replacing debt-financed spending with tax-financed spending.