Posted on 09/03/2011 5:04:59 PM PDT by george76
Republicans want President Barack Obama to demand a balanced budget amendment in his upcoming jobs speech to Congress.
"This would ensure spending cuts made today don't easily disappear tomorrow," said Virginia Rep. Bob Goodlatte in the GOP weekly address Saturday. "That doesn't just mean a fiscal house in order; it also means more certainty for the private sector and a better environment for job creation."
...
A balanced budget, he said, would ensure that Washington spends within its means, therefore providing a stronger environment for investment and job growth. When Congress passed the debt bill in the first week of August, it included a provision that both chambers vote on a balanced budget amendment this fall after a 12-member congressional "super committee" proposes $1.5 trillion in cuts.
(Excerpt) Read more at news4jax.com ...
The GOP, which will NOT propose a balanced budget keeps up with the BBA gimmick.
Earth to GOP. Balance the budget yourself. You don’t need a Constitutional amendment to accomplish it.
Republicans want President Barack Obama to demand a balanced budget amendment
....and here on FR we are always saying the Dems are on drugs.
What part of the United States Constitution prohibits the Congress from passing a balanced budget and spending bills which don't spend all the money that is collected in taxes?
Couldn't Congress actually reduce spending without a constitutional amendment?
I say this after living in a state with a constitutional requirement for a balanced budget, which is always used to increase taxes, fees and revenues to match excessive spending. That's not what we need at the federal level.
I won’t hold my breath.
Hussein would say, “Sure, let’s balance it...now we have to increase taxes 45% across the board.”.
Here is a plan, GOP: get control of the government AND BALANCE IT YOURSELF.
The GOP has no intention of proposing a balanced budget unless forced and believe me they will say “we are forced to raise taxes”
You are asking them to be honest conservatives and to lead as well? Wow, you ask far too much of the gutless RINO wonders.
You made John Boehner cry!
They won't. They don't really want to make the hard decisions. Their enthusiasm for a BBA is of a piece with super-congressional commissions. Such mechanisms give them cover to raise taxes that they're afraid to do out in the open. Then they can spend, spend and spend some more - which is what they really like to do.
If and when a BBA is passed it will be with the Democrats gaining a condition that taxes will fill in any differences.
If and when a BBA is passed it will be with the Democrats gaining a condition that taxes will fill in any differences.
The RINO infested GOP led by Bonehead just gave that animal 2.4 Trillion.
A balanced budget, enacted and put into force immediately, would result in an immediate reduction in GDP of at least 35%, probably more. While I absolutely support the concept of government living within its means, the economic dislocation it would produce in the short term would be horrific. There would be breadlines and riots, perhaps armed gangs roaming major urban areas. Yeah I know, we got that now.
It is very bad, IMO, to pass laws that can not or will not be followed. I believe it undermines everything.
You people who want the GOP to propose a balanced budget now are some of the dumbest I have ever seen on FR!
Look what happened with the Ryan budget and that was nowhere close to balanced.
Sure, let the GOP propose a balanced budget and watch Obama stay in the White House for another four years!
Are you all that politically stupid?
Because a number of factors interact if a “balanced budget” means “balanced budget”, which to me means that the government pays all its bills with only the tax revenues it collects. Interest expense as a percentage of government, this year, will run $515 billion. This out of a budget of $3.8 trillion is ~13.5% of the total federal budget. To put this in perspective this is about 25% of the total receipts under federal income tax - just to pay interest!
The deficit as it now stands is somewhat greater than 10% of GDP, and much more insidiously, that $14 T number we generally use for GDP is wildly inflated by excess government spending. Every dollar of government spending/ cutting increases/decreases GDP by a dollar.
Total tax revenues for the Federal Government last year were about $2.1 trillion dollars.
Total budgeted spending for this year is about $3.8 trillion dollars.
So if “we” were to mandate an instant balanced budget, the reduction in GDP would be something pretty far beyond “dramatic”. I don’t believe it can occur in under say 5 years (VERY optimistic) without enormous dislocations throughout the economy. This is an indication of how far the government has inserted itself into the economy.
And if interest rates rise, even mildly, our level of debt would catapult government finances into a death spiral. However you calculate debt and deficits and spending and taxes, we are borrowing 43% of every dollar we spend and spending 25% of our tax intake on interest with rates at record lows. If US borrowing rates went up to even 4%, I do not believe the US could avoid default.
bfl
Depends on what version is voted through congress.
For historical reference, this is the Balanced Budget Amendment which failed in the Senate but only one vote in 1995. (It was reintroduced in 1997.)
Balanced Budget Amendment, HJ RES 56 (same as SR RES 10) This is the version associated with "Cut, Cap & Balance."
The major difference is the newer version is tighter and more specific. Courts can't mandate tax increases to balance a budget, total spending is limited to 18% of GDP, there are specific supermajority provisions for protecting tax rates for example.
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