How the amendment would work

By

As proposed in Congress, the constitutional amendment to balance the federal budget would:

* Require Congress to adopt a budget in which spending is no greater than receipts. It would take a three-fifths vote of both Houses to pass an unbalanced budget.

* Limit tax receipt increases to the rate of national income growth, unless Congress votes an official tax hike. Under current tax law, the government reaps a revenue bonanza in times of inflation, because workers earn higher salaries and move into higher tax brackets automatically.

Recommended: Default

* Permit budget deficits when there is a declaration of war.

Share this story:

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...