Proposing an amendment to the Constitution of the United States requiring that the Federal budget be balanced.
Impact
Should HJR75 be enacted, its implications would be profound on the federal government's fiscal policies. The amendment would establish legal constraints on spending and revenue collection, likely leading to significant reforms in how the federal budget is developed and approved. This could affect various sectors reliant on federal funding, as agencies and programs would need to align their expenditures with stringent budgetary limits. Moreover, the requirement for a two-thirds majority in Congress to increase taxes or debt would further complicate financial management at the federal level.
Summary
HJR75 proposes an amendment to the Constitution of the United States that mandates a balanced federal budget. The core principle of this amendment is that the total outlays for any fiscal year cannot exceed the total receipts for that year. Furthermore, it sets a cap on outlays, restricting them to no more than 18% of the gross domestic product (GDP) of the previous calendar year. This move is intended to impose fiscal discipline on government spending, aiming to prevent the federal government from running substantial deficits.
Contention
Among the notable points of contention surrounding HJR75 are concerns regarding its potential impact on social programs and economic stability. Critics argue that such strict limitations could hinder the government's ability to respond adequately to economic downturns or crises, as it would limit fiscal flexibility. Additionally, the requirement for increased tax rates and debt limits to obtain a supermajority could lead to gridlock in Congress, impeding essential funding for services and infrastructure. Proponents argue that the amendment is necessary to curb reckless spending and maintain fiscal responsibility.
A CONCURRENT RESOLUTION calling on the United States Congress to submit to the states for ratification a balanced budget amendment to the United States Constitution and making a formal application to Congress under Article V of the United States Constitution to call a convention for the sole purpose of proposing for ratification an amendment to the United States Constitution which requires a balanced federal budget.