This resolution would propose a constitutional amendment that requires the federal government to have a balanced budget with spending capped at 18 percent of the economy’s total output unless two-thirds of each chamber of Congress votes to allow deficit spending. Additionally, it would require a vote from two-thirds of each chamber to impose a new tax, increase tax rates, increase the amount of revenue. To raise the debt limit, this bill would require a three-fifths vote by both chambers of Congress.
The president would be required to submit an annual budget that balances and doesn’t exceed 18 percent of the U.S. GDP. If a declaration of war is in effect, Congress would be able to waive all but one of these requirements — it would still have to approve tax increases with a two-thirds majority in each chamber.
As a constitutional amendment, this resolution would have to be approved by two-thirds of both the House and Senate to be formally proposed to states. It would then need to be ratified by three-fourths of the states (38 to be exact) before becoming a part of the Constitution. The amendment could also be enacted by a Constitutional Convention convened by two-thirds (currently 34) of the state legislatures.