Balanced Budget Tax Limitation

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 amendmentâ€TMs intent by simply replacing debt-financed spending with tax-financed spending.