Cornyn, Senate Republicans Unveil Balanced Budget Amendment to the Constitution

Statement

Today U.S. Senator John Cornyn (R-Texas) joined Senate Republicans in introducing a consensus Balanced Budget Amendment to the Constitution to bring much-needed fiscal discipline back to Washington and reverse the course of running unsustainable deficits. The consensus amendment relies heavily on a proposal introduced earlier this year by Sen. Cornyn, who made this statement following today's news conference announcing the amendment:

"Just as Texans must make tough choices and balance their checkbooks every year, there is no reason the federal government shouldn't do the same. We are facing a fiscal crisis, and everyone agrees that our nation is on an unsustainable path. Unfortunately Washington has a track record of failing to get its own books in order. We must set effective limits on spending, taxes, and require a balanced budget. It is my hope that the Majority will join us and make this a top priority for the 112th Congress."

BACKGROUND

* Presidential Requirement to Submit a Balanced Budget. Prior to each fiscal year, the President must transmit to Congress a balanced budget that limits outlays to 18 percent of GDP.
* Requirement to Pass a Balanced Budget. With the following limited exceptions, Congress must pass a balanced budget.
* 18 Percent Spending Cap. With the following limited exceptions, Congress must limit outlays to 18 percent of GDP.
* Supermajority for Tax Increases. Establishes a new supermajority requirement for net tax and rate increases.
* Supermajority to Raise the Debt Limit. Establishes new supermajority requirement for an increase in the debt limit.

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