# Understanding the Balanced Budget Amendment Proposal

This proposal would add a new amendment to the U.S. Constitution that would fundamentally change how the federal government handles money. Right now, Congress can spend more money than it takes in through taxes and other revenue—basically running up debt like a credit card. This amendment would make that illegal by requiring the government to balance its budget every single year, meaning total spending could never exceed total income.

The amendment has three main rules. First, the government's total spending for any year cannot be more than what it brings in through taxes and other sources. Second, the national debt cannot be increased beyond its current level. Third, any bill that would raise taxes or create new revenue would need approval from two-thirds of both the House and Senate, making it much harder to raise taxes than it is today. To actually become part of the Constitution, this amendment would need to be approved by Congress and then ratified by three-fourths of the state legislatures.

The practical impact of this would be enormous. Currently, when the economy struggles or emergencies happen, the government can spend money it doesn't have to help people or respond to crises. With this amendment, that flexibility would disappear. During recessions, wars, or natural disasters, the government would be forced to either cut spending dramatically or raise taxes immediately—it couldn't borrow money to bridge the gap. This could mean reduced Social Security, Medicare, military spending, or other programs, or it could force sudden tax increases. The two-thirds requirement for raising taxes means that even in emergencies, it would be extremely difficult to increase revenue, potentially forcing only spending cuts as a solution.

Proposing a balanced budget amendment to the Constitution of the United States.

Biggs, Andy

<p>This joint resolution proposes a constitutional amendment that prohibits total outlays for any fiscal year from exceeding total receipts for that fiscal year.</p><p>The amendment also prohibits (1) increases to the federal debt limit, and (2) a bill that increases revenue from becoming law unless the bill has been approved by two-thirds of each chamber of Congress with a roll call vote.</p>