The bill proposes a constitutional amendment to limit annual government expenditures to the average of the previous three years' receipts, adjusted for population changes and inflation. Congress can approve specific expenditures exceeding the limit by a two-thirds roll call vote. Exceptional expenditures are permitted during a declared war. Any new or increased tax must be approved by a two-thirds roll call vote in Congress. Congress is responsible for enforcing the article through appropriate legislation, which will take effect five years after ratification.
This joint resolution proposes a constitutional amendment prohibiting total federal expenditures for a year from exceeding the average annual federal receipts collected in the three prior years, adjusted for changes in the population of U.S. citizens and inflation. Expenditures for payment of debt and receipts derived from borrowing are excluded.
Under the amendment, Congress may authorize specific expenditures in excess of the limit with (1) a roll call vote of two-thirds of each chamber, or (2) a roll call vote for any year in which a declaration of war is in effect.
The amendment also prohibits any bill to levy a new tax or increase the rate of any tax from becoming law unless it has been approved by a roll call vote of two-thirds of the whole number of each chamber of Congress.
The requirements take effect in the fifth year beginning after ratification of the amendment.
