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Balanced Budget 6/5/92 [OA 7576]
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Balanced Budget 6/5/92 [OA 7576]
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Balanced Budget 6/5/92 [OA 7576]
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26
22
6
1
(Hinchliffe/Gershowitz)
June 4, 1992 2 p.m.
BUDGET Draft Three
PRESIDENTIAL REMARKS: BALANCED BUDGET AMENDMENT RADIO ADDRESS
I want to talk to you today about a big idea -- a big change
in the way your government works. For the past 12 years,
President Reagan and I have tried to get Congress to act
responsibly and restrain federal spending. We've tried
compromise. We've tried confrontation. We've tried quiet
diplomacy with the leaders of Congress. None of it worked. And
so, my friends, the time has come to take dramatic action. We
must pass a Constitutional amendment mandating a balanced budget.
For most of our nation's history there was an unwritten rule
against deficit financing -- against saddling future generations
with a mountain of debt. But in recent times we've moved away
from that. Now we're borrowing from the future to pay for
indulgences of the present. Our future is at stake. To ensure
long-term economic growth, we must get federal spending under
control.
I've called for big changes in many areas -- revolutionary
reforms in how this nation's gridlocked capitol does business.
And for some time now, I've been speaking about how we create
jobs in this country. Well, high deficits raise interest rates,
and high interest rates kill jobs. So to make our economic
future strong -- the balanced budget is where we must start.
Beginning well before I became your President, I've fought
for a balanced budget amendment. As a matter of fact, on
February 9, 1989, the very first legislative proposal I made as
2
President was for Congress to adopt a balanced budget
constitutional amendment -- and in each of the three budgets I've
submitted since, I've repeated that plea.
Why am I so fiercely dedicated to this issue? Look at your
own family. You know what happens when you spend more than you
make. The devil's going to come, demanding his due. Well that's
what our American family faces right now. When you hear about
a deficit measured in hundreds of billions of dollars, remember
-- that's not Monopoly money. Some day that debt must be paid
with your money -- as sure as your own personal debts will have
to be paid with your money. It's unacceptable when this spending
riptide has us drowning in debt, dragging us further out to sea.
This amendment will bring us back to shore. It says the
government can't spend more than it takes in. Nothing could be
more simple. Nothing could be as tough. Nothing could work as
well.
It's past time to make this government as accountable with
your money in America's house as you must be with your money in
your house. 44 states already have some type of constitutional
balanced budget requirement. 80% of the American people want
this amendment, and the tougher scrutiny of government spending
which it will require. We're fed up. We know it's time for
partisan posturing to yield to responsibility to govern. We know
it's time to protect our children's children -- and we're
impatient to enact this solemn bond between generations.
Well, there's something you can do right now. The House
steepen, Fred
3367080
3
will vote on this amendment within days. Make your voice heard.
Sit down and write a letter. Pick up the phone and call. Tell
Congress to stop treating our Federal treasury like the corner
cash machine. Tell Congress to stop mortgaging your future.
You know, for a long time on this issue I've felt like a
prophet in the desert. Now, I'm glad so many Democrats are
finally clambering on board the motion I've called for so
urgently for so long. We must join together, inspired by Thomas
Jefferson's words: "I
place
public debt as the greatest of
the dangers to be feared. " We have within our grasp the power to
conquer that fear. Our country's economy -- our country's future
-- will be the stronger for it. God bless you, and this nation.
#
#
#
#
(Hinchliffe/Gershowitz)
June 3, 1992
11 a.m.
BUDGET Draft Two
PRESIDENTIAL REMARKS: BALANCED BUDGET AMENDMENT RADIO ADDRESS
In the 200 years since this country adopted our Bill of
Rights we've amended our Constitution only 15
times.
My friends,
I believe the time has come to take that dramatic action again.
We must pass a Constitutional amendment mandating a balanced
budget. The future of our nation is at stake, because the
biggest obstacle to our economy recovery is the budget deficit.
For most of our history there was an unwritten but effective
rule against deficit financing, except in war. But in recent
Cat's
times we've moved away from that -- and now we're borrowing from
pg
the future to pay for our indulgences of the present.
-Buidinga
I've called for big changes in many areas -- revolutionary
reforms in how this nation's gridlocked capitol does business.
But the balanced budget is where we must start. Beginning well
before I became your President I've fought for a balanced budget
amendment -- feeling like a prophet in the desert. As a matter
of fact the very first legislative proposal I made upon becoming
President, February 9, 1989, called for a balanced budget -- and
in each of the three budgets I've submitted since, I've repeated
that plea.
If Congress had supported my proposal back in 1989,
we'd be only two years away balanced budget right now.
DAN'S from a
Why am I so fiercely dedicated to this issue? Look at your
Buildinga Better Are
commitment
own house. You know what happens when you spend more than you
make. The devil's going to come, demanding his due. Well that's
pg2
what our American family faces right now. When you hear about
2
P91235, Congression quarterly, 5/9/92
our $400 billion deficit, remember -- that's not Monopoly money.
That's your money, as sure as your own personal debts will have
to be paid with your money. It's a critical situation when our
1234 C.Q Kennedy quote, 5/9/92
interest payments exceed our social spending; when the principal
we owe has nearly doubled in two years; when this spending
riptide has us drowning in debt, dragging us further out to sea.
This amendment will bring us back to shore. It says the gov-
ernment can't spend more than it takes in. Nothing could be more Testimony
Beth's Notes ON Darman's
simple. Nothing could be as tough. Nothing could work as well. 5/6-Senthx by
It's a big idea -- a big change in the way your government
David Taylor
works. It's past time to make it as accountable with your money
in America's house as you must be with your money in your house.
34 of our states already demand balanced budgets I 80%
chart of provided the by CliFF Alderman
American people want this amendment, and the tougher scrutiny of
intergovernment "state
government spending which it will require. You're fed up. You
know it's time for partisan posturing to yield to responsibility
Balanced Budget,
to govern. You know it's time to protect our children's children;
you're impatient to enact this solemn bond between generations.
There's something you can do right now. The House will vote
on this within days. Call and tell Congress to stop mortgaging
your future. I'm glad so many Democrats are finally clambering
on board the motion I've called for so urgently for so long. We
must join together, inspired by Thomas Jefferson's words: "I
place public debt as the greatest of the dangers to be feared.
We have within our grasp the power to conquer that fear. Our
country's future will be the stronger for it. God bless you.
Quotations,
Danial Backer
6/4/92
Bob Damas in the General Counsel Office of OMB, confirmed on
6/4/92, that "44" states have written in their constitution some
provision calling for a balanced budget.
Fred Stepler, polling, Bush-Quayle Campaign Headquarters,
confirmed that "80%" (of the American people want this amendment)
is the correct figure to use for the Balanced Budget Radio
Address.
EXECUTIVE OFFICE OF THE PRESIDENT
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON, D.C. 20500
June 4, 1992
THE CHAIRMAN
MEMORANDUM FOR HENSON MOORE
FROM:
MICHAEL J. BOSKIN MMB
SUBJECT:
Request for Quantitative Estimate of Effects of
Balanced Budget
It is not possible to produce reliable quantitative
estimates, quickly, of the effects on the economy of a balanced
budget. While such estimates would be desirable, their
production would take CEA, Treasury and OMB weeks, not hours or
days. However, I can provide the following qualitative
description:
If the Balanced Budget amendment were passed and implemented
and appropriate steps were taken in the interim to slow the
growth of government spending, the following would occur:
1.
(a) A Balanced Budget would mean the government would no
longer be a drain on the nation's pool of private
savings which is the main source of financing for the
investment which generates jobs and growth.
(b) Concern over the future reignition of inflation would
be greatly reduced.
2. These two factors would lead to a sizeable reduction in
long-term interest rates.
-- This would stimulate the housing, auto, business
investment and export sector which are highly interest-
sensitive.
3.
The economy would grow more rapidly:
-- Productivity and wages would increase more rapidly.
-- America's international competitiveness would improve
still further.
-- Americans' standard of living would rise more swiftly,
more continuously and more surely.
SENT BY:Xerox Telecopier 7020 ; 6- 2-92 ; 2:11PM ;
2024566218-
4562983;# 2
0 Cut 1/2 3/4p age
(Hinchliffe/Gershowitz)
June 2, 1992 10 a.m.
BUDGET Draft One
PRESIDENTIAL REMARKS: BALANCED BUDGET AMENDMENT RADIO ADDRESS
FRIDAY JUNE 5, 1992
comt.
In the 200 years since this country adopted our Bill of
about
Rights we've amended our Constitution only 15 times. My friends,
I believe the time has come to take that dramatic action again.
what
We must pass a Constitutional amendment mandating & balanced
budget. This call to change our most precious document of
democracy is not one I make lightly. I make it because I believe
that the future of our nation is at stake -- since the biggest
flagion
obstacle to our economy recovery is the budget deficit.
For most of our history there was an unwritten rule against
Bruzer
deficit financing, except in war. But now look what's happened. Be
mou
The bloated, free-wheeling spending machine of irresponsible par-
factual
sounds
tisan politics has lurched out of control. We're borrowing from
the future to pay for the indulgences of the present. Abraham
political
like
caying
Lincoln knew of the dangers of this practice when he said: "As
an individual who
lives by borrowing soon finds his original
means devoured by interest
so must it be with a government."
I've called for essential big changes -- revolutionary reforms
in the way this nation's gridlocked capitol does business. But
the balanced budget is where we must start. For years --
beginning well before I became your President -- I've fought for
a balanced budget amendment: a lot of times feeling like a
prophet in the desert. As a matter of fact, the very first
enc.
legislative proposal I made upon becoming President, February 9,
SENT BY:Xerox Telecopier 7020 ; 6- 2-92 i 2:12PM ;
2024566218->
4562983;# 3
2
1989, called for a balanced budget -- and in each of the three
budgets I've submitted since, I've repeated that plea. If
Congress had supported my proposal back in 1989, we'd be only two
years away from a balanced budget right now.
Why am I so fiercely dedicated to this issue? Look at your
own house. You know what happens when you spend more than you
paying out
make. The devil's going to come, demanding his due. What kind
each
of future would you have if you started this year already owing
S4 for every $10 you'll make -- not including interest, and not
including basic expenses to make it through that year?
Well, that's what our American family faces right now. When
you hear about our $400 billion deficit, remember -- that's not
and
Monopoly money. That's your money, as sure as your own personal
debts will have to be paid with your money. It's a critical sit-
Kennedy
uation when our interest payments exceed our social spending
this spending
uptide
has
us
when the principal we owe has nearly doubled in two years -- when
my us
chart
We're drowning in debt, being dragged further out to sea.
This amendment will bring us back to shore. It says the gov-
amend
ernment can't spend more than it takes in. Nothing could be more
words
simple. Nothing could be as tough. Nothing could work as well.
It's time -- past time - to discipline this government; to
make it as accountable with your money in America's house as you must be
are with your money in your house.
Howmany 2/3 of our states already
demand balanced budgets. And 80% of the American people want
this amendment - and the tougher scrutiny of government spending
which it will require -- at the federal level. You're fed up and
SENT BY:Xerox Telecopier 7020 ; 6- 2-92 ; 2:12PM ;
2024566218->
4562983;# 4
3
you're not going to accept any more delays. You know it's time
for partisan posturing to yield to the responsibility to govern.
You know it's time to protect our children's children -- and
you're impatient to enact this solemn bond between generations.
Well, there's something you can do right now. The House
will vote on the balanced budget proposal within days. Call your
Representative -- tell Congress to stop mortgaging your future.
I'm proud that this is at last coming to a vote, and I'm
glad so many Democrats are finally clamoring on board the motion
I've been calling for so urgently for so long. We must join
together inspired by the words of Thomas Jefferson: "I place
Jerosey
...public debt as the greatest of the dangers to be feared."
We have within our grasp the power to conquer that fear.
Together, we will do it and our country's economy -- and future -
- will be the stronger for it. God bless you, and our nation.
change
change trust idea government It'sa borks.
b
this
how
460
Constitution of the U.S:
Constitution
Island. June 7. 1790; Vermont, Nov 3, 1791; Virginia, Dec. 15. 1791; Massachusetts, Mar. 2. 1939; Georgia, Mar. 18, 1939; Con-
choose immediately, by ballot, the President. But in choos-
necticut, Apr. 19, 1939. These original 10 ratified amendments follow as Amendments I to X inclusive.
ing the President, the votes shall be taken by States, the rep-
(Of the two original proposed amendments which were not ratified by the necessary number of states, the first related to appor-
resentation from each State having one vote; a quorum for
tionment of Representatives: the second. to compensation of members. See p. 465.)
this purpose shall consist of a member or members from
AMENDMENT L
shall be compelled in any criminal case to be a witness
two-thirds of the States, and a majority of all the States
Religious establishment prohibited. Freedom of
against himself. nor be deprived of life, liberty, or property,
shall be necessary to a choice. (And if the House of Repre-
speech, of the press, and right to petition.
without due process of law; nor shall private property be
sentatives shall not choose a President whenever the right of
Congress shall make no law respecting an establishment
taken for public use without just compensation.
choice shall devolve upon them, before the fourth day of
AMENDMENT VI.
March next following, then the Vice-President shall act as
of religion. or prohibiting the free exercise thereof; or abridg-
Right to speedy trial, witnesses, etc.
President, as in the case of the death or other constitutional
ing the freedom of speech, or of the press; or the right of the
people' peaceably to assemble, and to petition the Govern-
In all criminal prosecutions, the accused shall enjoy the
disability of the President.) (The words in parentheses were
right to a speedy and public trial, by an impartial jury of the
superseded by Amendment XX, section 3.) The person having
ment for a redress of grievances.
State and district wherein the crime shall have been commit-
the greatest number of votes as Vice-President, shall be the
AMENDMENT II.
ted, which district shall have been previously ascertained by
Vice-President, if such number be a majority of the whole
Right to keep and bear arms.
law, and to be informed of the nature and cause of the accu-
number of Electors appointed, and if no person have a ma-
A well-regulated militia, being necessary to the security of
sation; to be confronted with the witnesses against him; to
jority, then from the two highest numbers on the list, the
a free State. the right of the people to keep and bear arms,
have compulsory process for obtaining witnesses in his fa-
Senate shall choose the Vice-President; a quorum for the
shall not be infringed.
vor, and to have the assistance of counsel for his defense.
purpose shall consist of two-thirds of the whole number of
Senators, and a majority of the whole number shall be nec-
AMENDMENT VII.
AMENDMENT III.
essary to a choice. But no person constitutionally ineligible
Conditions for quarters for soldiers.
Right of trial by jury.
to the office of President shall be eligible to that of Vice-
President of the United States.
No soldier shall, in time of peace be quartered in any
In suits at common law, where the value in controversy
house, without the consent of the owner, nor in time of war,
shall exceed twenty dollars, the right of trial by jury shall be
preserved, and no fact tried by a jury shall be otherwise re-
THE RECONSTRUCTION AMENDMENTS
but in R manner to be prescribed by law.
examined in any court of the United States, than according
(Amendments XIII, XIV, and XV are commonly known as
AMENDMENT IV.
to the rules of the common law.
the Reconstruction Amendments, inasmuch as they followed
Right of search and seizure regulated.
AMENDMENT VIII.
the Civil War, and were drafted by Republicans who were
The right of the people to be secure in their persons,
Excessive bail or fines and cruel punishment prohib-
best on imposing their own policy of reconstruction on the
houses, papers, and effects, against unreasonable searches
South. Post-bellum legislatures there-Mississippi, South Car-
ited.
and seizures, shall not be violated, and no warrants shall
ollne, Georgia, for example-had set up laws which, it was
issue, but upon probable cause, supported by oath or affir-
Excessive bail shall not be required, nor excessive fines
charged, were contrived to perpetuate Negro slavery under
mation, and particularly describing the place to be searched.
imposed. nor cruel and unusual punishments inflicted.
other names.)
and the persons or things to be seized.
AMENDMENT IX.
AMENDMENT XIII.
AMENDMENT V.
Rule of construction of Constitution.
Slavery abolished.
Provisions concerning prosecution. Trial and punish-
The enumeration in the Constitution, of certain rights,
ment-private property not to be taken for public use
shall not be construed to deny or disparage others retained
Dec. 18, 1865. The amendment, when first proposed by a reso-
(Proposed by Congress Jan. 31, 1865; ratification completed
without compensation.
by the people.
AMENDMENT X.
1864. 1864, but was defeated in the House, 95 to 66 on June 15,
& bation in Congress, was passed by the Senate, 38 to 6, on Apr.
No person shall be held to answer for a capital, or other-
wise infamous crime, unless on a presentment or indictment
of a Grand Jury, except in cases arising in the land or naval
Rights of States under Constitution.
forces, or in the militia, when in actual service in time of war
The powers not delegated to the United States by the
resolution passed, 119 to 56. It was approved by President Lin-
On reconsideration by the House, on Jan. 31, 1865, the
Constitution, nor prohibited by it to the States, are reserved
cided coln on Feb. 1, 1865, although the Supreme Court had de-
or public danger; nor shall any person be subject for the
in 1798 that the President has nothing to do with the
same offense to be twice put in jeopardy of life or limb; nor
to the States respectively, or to the people.
proposing of amendments to the Constitution, or their adop-
Amendments Since the Bill of Rights
AMENDMENT XI.
convicted. shall exist within the United States or any place
panishment for crime whereof the party shall have been duly
1. Neither slavery nor involuntary servitude, except as a
of the epidemic of yellow fever at Philadelphia: it seems, how
ever. that the Legislature of Tennessee took no action on
subject to their jurisdiction.
Judicial powers construed.
Amendment XI, owing doubtless to the fact that public an-
nouncement of its adoption was made soon thereafter.
propriate 2 Congress legislation. shall have power to enforce this article by ap-
The judicial power of-the United States shall not be con-
strued to extend to any suit in law-or equity, commenced or
(Besides the necessary 12 States, one other, South Carolina.
ratified Amendment XI. but this action was not taken until
AMENDMENT XIV.
prosecuted against one of the United States by citizens of
another State, or by citizens or subjects of any foreign state.
Dec. 4, 1797; the two remaining States, New Jersey and Penn-
Citizenship rights not to be abridged.
(This amendment was proposed to the Legislatures of the
sylvania, failed to ratify.)
(The the following amendment was proposed to the Legislatures
several States by the Third Congress on March 4, 1794, and
AMENDMENT XII.
was declared to have been ratified in a message from the Pres-
Manner of choosing President and Vice-President.
Secretary declared to have been ratified in a proclamation by the
several states by the 39th Congress, June 13, 1866, and
ident to Congress. dated Jan. & 1798.
(It was on Jan 5, 1798, that Secretary of State Pickering
(Proposed by Congress Dec. 9, 1803; ratification completed
of State, July 28, 1868
received from 12 of the States authenticated ratifications. and
The Electors shall meet in their respective States and vote
subsequent in to earlier rejections. Newly constituted legis-
amendment was adopted only by virtue of ratifi-
June 15, 1804.)
informed President John Adams of that fact.
(As a result of later research in the Department of State, it
by ballot for President and Vice-President, one of whom, at
July both North Carolina and South Carolina (respec-
is now established that Amendment XI became part of the
least, shall not be an inhabitant of the same State with them-
4 and 9, 1868), ratified the proposed amendment,
selves; they shall name in their ballots the person voted for 25
earlier legislatures had rejected the proposal. The
Constitution on Feb. 7, 1795, for on that date it had been rati-
fied by 12 States as follows:
as President, and in distinct ballots the person voted for
of State issued a proclamation, which, though
(1. New York, Mar. 27, 1794. 2. Rhode Island, Mar. 31,
Vice-President, and they shall make distinct lists of all per-
1794. 3. Connecticut, May & 1794. 4. New Hampshire, June
16, 1794. 5. Massachusetts, June 26, 1794. 6. Vermont, be-
sons Vice-President, and of the number of votes for each. which
voted for as President. and of all persons voted for as
Jersey, entertained no doubt as to the validity of the
as to the effect of attempted withdrawals by Ohio
21.1868), Congress South Carolina. The following day
tween Oct 9. 1794, and Nov. 9, 1794. 7. Virginia, Nov. 18,
lists seat of they the shall Government sign and of certify. the United and transmit States, directed sealed to to the the in
Amendment to be a part of the Constitution and di-
passed a resolution which declared
1794. & Georgia. Nov. 29, 1794. 9. Kentucky. Dec. 7, 1794.
10. Maryland, Dec. 26, 1794. 11. Delaware, Jan 23, 1795. 12.
President of the Senate; the President of the Senate shall.
Secretary of State so to promulgate it. The Secre-
North Carolina, Feb. 7, 1795.
the presence of the Senate and House of Represen be cours
had ratified the amendment, subsequent to an ear-
however, until the newly constituted Legislature
(On June 1, 1796, more than a year after Amendment XI
open ted;-The person having the greatest number of votes major.
all the certificates and the votes for
before the promulgation of the ratification of the
had become a part of the Constitution (but before anyone was
officially aware of this), Tennessee had been admitted as a
President, shall be the President, if such number be a if 80
ity of the whole number of Electors appointed; and the
born or naturalized in the United States,
State; but not until Oct. 16, 1797, was a certified copy of the
have such majority, then from the persons having those
to the jurisdiction thereof, are citizens of the
resolution of Congress proposing the amendment sent to the
Governor of Tennessee (John Sevier) by Secretary of State Pic-
person numbers not exceeding three shall
highest voted for as President, the House of Representatives
and of the State wherein they reside. No State
nities of citizens of the United States; nor shall
enforce any law which shall abridge the privi-
kering, whose office was then at Trenton, New Jersey, because
ne U.S.
Constitution of the U.S.
461
Massachusetts, Mar. 2 1939; Georgia, Mar. 18, 1939;
immediately, by ballot, the President. But in choos-
any State deprive any person of life. liberty, or property,
as Amendments I to X inclusive.
the votes shall be taken by States, the rep- for
without due process of law; nor deny to any person within
the necessary number of states, the first related
from each State having one vote; a quorum from
its jurisdiction the equal protection of the laws.
See p. 465.)
be compelled in any criminal case to be
reo-thirds to of the States, and a majority of all the States
purpose consist of a member or members
2. Representatives shall be apportioned among the several
States according to their respective numbers, counting the
inst himself. nor be deprived of life, liberty, or
be necessary to a choice. (And if the House of Repre-
whole number of persons in each State, excluding Indians
shall waterives shall not choose a President whenever the right of
not taxed. But when the right to vote at any election for the
hout due process of law; nor shall private property
shall devolve upon them, before the fourth day of
choice of Electors for President and Vice-President of the
en for public use without just compensation.
stance March next following, then the Vice-President shall act as
United States, Representatives in Congress, the executive
AMENDMENT VI.
Right to speedy trial, witnesses, etc.
President, as in the case of the death or other constitutional
and judicial officers of a State, or the members of the Legis-
all criminal prosecutions, the accused shall enjoy
repersed by Amendment XX, section 3.) The person having
diability of the President.) (The words in parentheses were
lature thereof, is denied to any of the male inhabitants of
such State, being twenty-one years of age, and, citizens of
to a speedy and public trial, by an impartial jury of
x greatest number of votes as Vice-President, shall be the
the United States, or in any way abridged, except for partici-
te and district wherein the crime shall have been
President. if such number be a majority of the whole
pation in rebellion, or other crime, the basis of representa-
which district shall have been previously ascertained
number of Electors appointed. and if no person have a ma-
tion therein shall be reduced in the proportion which the
and to be informed of the nature and cause of the
then from the two highest numbers on the list, the
number of such male citizens shall bear to the whole number
on; to be confronted with the witnesses against
Senate prtty. shall choose the Vice-President; a quorum for the
of male citizens twenty-one years of age in such State.
compulsory process for obtaining witnesses in
perpose shall consist of two-thirds of the whole number of
3. No person shall be a Senator or Representative in Con-
and to have the assistance of counsel for his defes
Senators. and a majority of the whole number shall be nec-
gress, or Elector of President and Vice-President, or hold
AMENDMENT VII.
eary to a choice. But no person constitutionally ineligible
any office, civil or military, under the United States, or un-
Right of trial by jury.
to the office of President shall be eligible to that of Vice-
der any State, who, having previously taken an oath, as a
President of the United States.
member of Congress, or as an officer of the United States, or
n suits at common law, where the value in controvers
as a member of any State Legislature, or as an executive or
11 exceed twenty dollars, the right of trial by jury
THE RECONSTRUCTION AMENDMENTS
judicial officer of any State, to support the Constitution of
served, and no fact tried by a jury shall be otherwise
(Amendments XIII, XIV, and XV are commonly known as
the United States, shall have engaged in insurrection or re-
mined in any court of the United States, than accord
the rules of the common law.
the
Reconstruction Amendments, inasmuch as they followed
bellion against the same, or given aid or comfort to the ene-
Ciril War, and were drafted by Republicans who were
mies thereof. But Congress may by a vote of two-thirds of
AMENDMENT VIII.
let! on imposing their own policy of reconstruction on the
each House, remove such disability.
Excessive bail or fines and cruel punishment
Smith Post-bellum legislatures there-Mississippi, South Car-
4. The validity of the public debt of the United States, au-
ted.
dine, Georgia, for example-had set up laws which, it was
thorized by law, including debts incurred for payment of
Excessive bail shall not be required. nor excessive
charged, were contrived to perpetuate Negro slavery under
pensions and bounties for services in suppressing insurrec-
posed, nor cruel and unusual punishments inflicted
other names.)
tion or rebellion, shall not be questioned. But neither the
United States nor any State shall assume or pay any debt or
AMENDMENT XIII.
AMENDMENT IX.
obligation incurred in aid of insurrection or rebellion against
Slavery abolished.
the United States, or any claim for the loss or emancipation
Rule of construction of Constitution.
of any slave; but all such debts, obligations and claims, shall
The enumeration in the Constitution, of certain
(Proposed by Congress Jan. 31. 1865; ratification completed
be held illegal and void.
Il not be construed to deny or disparage others
Dec. 18. 1865. The amendment, when first proposed by a reso-
known in Congress, was passed by the Senate. 38 to 6, on Apr.
5. The Congress shall have power to enforce, by appropri-
the people.
ate legislation, the provisions of this article.
1 1864. but was defeated in the House, 95 to 66 on June 15.
AMENDMENT X.
1854 On reconsideration by the House, on Jan. 31, 1865, the
AMENDMENT XV.
Rights of States under Constitution.
replution passed, 119 to 56. It was approved by President Lin-
The powers not delegated to the United States by
are on Feb. I. 1865, although the Supreme Court had de-
Race no bar to voting rights.
nstitution, nor prohibited by it to the States, are
aded in 1798 that the President has nothing to do with the
(The following amendment was proposed to the legislatures
the States respectively, or to the people.
proposing of amendments to the Constitution, or their adop-
of the several States by the 40th Congress, Feb. 26, 1869, and
/
was declared to have been ratified in a proclamation by the
1. Neither slavery nor involuntary servitude, except as a
Secretary of State, Mar. 30, 1870.)
e Bill of Rights
punishment for crime whereof the party shall have been duly
1. The right of citizens of the United States to vote shall
maricted. shall exist within the United States or any place
he epidemic of yellow fever at Philadelphia; it seems.
mbject to their jurisdiction.
not be denied or abridged by the United States or by any
that the Legislature of Tennessee took no action
State on account of race, color, or previous condition of ser-
endment XI. owing doubtless to the fact that publ
2 Congress shall have power to enforce this article by ap-
vitude.
incement of its adoption was made soon thereafter.
propriate legislation.
2 The Congress shall have power to enforce this article
Besides the necessary 12 States. one other, South Care
AMENDMENT XIV.
by appropriate legislation.
fied Amendment XI. but this action was not taken
4, 1797; the two remaining States. New Jersey and
Citizenship rights not to be abridged.
AMENDMENT XVI.
ania, failed to ratify.)
(The following amendment was proposed to the Legislatures
Income taxes authorized.
AMENDMENT XII.
the several states by the 39th Congress, June 13, 1866, and
Manner of choosing President and Vice-Presis
- declared to have been ratified in a proclamation by the
(Proposed by Congress July 12, 1909; ratification declared
Secretary of State, July 28. 1868.
by the Secretary of State Feb. 25, 1913.)
Proposed by Congress Dec. 9. 1803: ratification
The 14th amendment was adopted only by virtue of ratifi-
The Congress shall have power to lay and collect taxes on
e 15, 1804.)
ation subsequent to earlier rejections. Newly constituted legis-
incomes, from whatever source derived, without apportion-
The Electors shall meet in their respective States and
in in both North Carolina and South Carolina (respec-
ment among the several States, and without regard to any.
ballot for President and Vice-President, one of whom
they July 4 and 9, 1868), ratified the proposed amendment,
census or enumeration.
it, shall not be an inhabitant of the same State with voted
strough earlier legislatures had rejected the proposal. The
es; they shall name in their ballots the person
laretary of State issued a proclamation. which, though
AMENDMENT XVII.
President, and in distinct ballots the person voted
limbtful as to the effect of attempted withdrawals by Ohio
e-President, and they shall make distinct lists of
- New Jersey, entertained no doubt as to the validity of the
United States Senators to be elected by direct popular vote.
voted for as President. and of all persons voted for
expection by North and South Carolina. The following day
(Proposed by Congress May 13, 1912; ratification declared
e-President, and of the number of votes for each
July 21. 1868). Congress passed a resolution which declared
by the Secretary of State May 31, 1913.)
they shall sign and certify, and transmit sealed
14th Amendment to be a part of the Constitution and di-
7 the Secretary of State so to promulgate it. The Secre-
1. The Senate of the United States shall be composed of
of the Government of the United States, directed
en waited. however, until the newly constituted Legislature
two Senators from each State, elected by the people thereof,
sident of the Senate; the President of the Senate
for six years; and each Senator shall have one vote. The elec-
n all the certificates and the votes shall then be
presence of the Senate and House of
Georgia had ratified the amendment, subsequent to an ear-
tors in each State shall have the qualifications requisite for
rejection, before the promulgation of the ratification of the
-The person having the greatest number of
By amendment.)
electors of the most numerous branch of the State Legisla-
tures.
sident, shall be the President. if such number be
L All persons born or naturalized in the United States,
2 When vacancies happen in the representation of any
of the whole number of Electors appointed;
- subject to the jurisdiction thereof, are citizens of the
State in the Senate, the executive authority of such State
son have such majority, then from the persons
States and of the State wherein they reside. No State
shall issue writs of election to fill such vacancies: Provided.
best numbers not exceeding three on the list
make or enforce any law which shall abridge the privi-
That the Legislature of any State may empower the Execu-
ed for as President, the House of
or immunities of citizens of the United States; nor shall
tive thereof to make temporary appointments until the peo-
462
Constitution of the U.S.
Constitu
ple fill the vacancies by election as the Legislature may di-
Legislatures of three-fourths of the several States within
AMENDMENT XXV.
rect.
seven years from the date of its submission.
Presidential disability and succession.
3. This amendment shall not be so construed as to affect
the election or term of any Senator chosen before it becomes
(Proposed by Congress July 6, 1965; ratification complete
valid as part of the Constitution.
AMENDMENT XXI.
Feb. 10, 1967.)
AMENDMENT XVIII.
Repeal of Amendment XVIII.
1. In case of the removal of the President from office or
his death or resignation, the Vice President shall becon
Liquor prohibition amendment.
(Proposed by Congress Feb. 20, 1933; ratification completed
President.
Dec. 5. 1933.)
(Proposed by Congress Dec. 18, 1917; ratification completed
2 Whenever there is a vacancy in the office of the Vi
Jan. 16, 1919. Repealed by Amendment XXI. effective Dec. 5,
1. The eighteenth article of amendment to the Constitu-
President, the President shall nominate a Vice President wh
1933.)
tion of the United States is hereby repealed.
shall take office upon confirmation by a majority vote
(1. After one year from the ratification of this article the
2. The transportation or importation into any State, Terri-
both houses of Congress.
manufacture, sale, or transportation of intoxicating liquors
tory, or Possession of the United States for delivery or use
3. Whenever the President transmits to the President pt
within, the importation thereof into, or the exportation
therein of intoxicating liquors, in violation of the laws
tempore of the Senate and the Speaker of the House of Re
thereof from the United States and all territory subject to
thereof, is hereby prohibited.
resentatives his written declaration that he is unable to di
the jurisdiction thereof for beverage purposes is hereby pro-
3. This article shall be inoperative unless it shall have
charge the powers and duties of his office. and until 1
hibited.
been ratified as an amendment to the Constitution by con-
transmits to them a written declaration to the contrary, suc
(2. The Congress and the several States shall have concur-
ventions in the several States, as provided in the Constitu-
powers and duties shall be discharged by the Vice Presider
tion, within seven years from the date of the submission
as Acting President.
rent power to enforce this article by appropriate legislation.
(3. This article shall be inoperative unless it shall have
hereof to the States by the Congress.
4. Whenever the Vice President and a majority of eithd
been ratified as an amendment to the Constitution by the
the principal officers of the executive departments or of suc
Legislatures of the several States, as provided in the Consti-
other body as Congress may by law provide, transmit to th
AMENDMENT XXII.
tution, within seven years from the date of the submission
President pro tempore of the Senate and the Speaker of th
hereof to the States by the Congress.)
Limiting Presidential terms of office.
House of Representatives their written declaration that th
President is unable to discharge the powers and duties of hi
(The total vote in the Senates of the various States was
(Proposed by Congress Mar. 24. 1947: ratification com-
1,310 for, 237 against-84.6% dry. In the lower houses of the
office, the Vice President shall immediately assume the pow
pleted Feb. 27. 1951.)
ers and duties of the office as Acting President.
States the vote was 3,782 for. 1,035 against-78.5% dry.
1. No person shall be elected to the office of the President
Thereafter, when the President transmits to the Presider
(The amendment ultimately was adopted by all the States
more than twice, and no person who has held the office of
pro tempore of the Senate and the Speaker of the House d
except Connecticut and Rhode Island.)
President, or acted as President, for more than two years of
Representatives his written declaration that no inability ex
AMENDMENT XIX.
a term to which some other person was elected President
ists, he shall resume the powers and duties of his office un
shall be elected to the office of the President more than
less the Vice President and a majority of either the principa
Giving nationwide suffrage to women.
once. But this Article shall not apply to any person holding
officers of the executive department or of such other body a
(Proposed by Congress June 4, 1919; ratification certified
the office of President when this Article was proposed by
Congress may by law provide. transmit within four days t
by Secretary of State Aug. 26, 1920.)
the Congress, and shall not prevent any person who may be
the President pro tempore of the Senate and the Speaker a
1. The right of citizens of the United States to vote shall
holding the office of President, or acting as President. during
the House of Representatives their written declaration tha
not be denied or abridged by the United States or by any
the term within which this Article becomes operative from
the President is unable to discharge the powers and duties 0
State on account of sex.
holding the office of President or acting as President during
his office. Thereupon Congress shall decide the issue, assem
2. Congress shall have power to enforce this Article by
the remainder of such term.
appropriate legislation.
2. This article shall be inoperative unless it shall have
Origin of t
been ratified as an amendment to the Constitution by the
The War of Independence was conducted by delegate
AMENDMENT XX.
Legislatures of three-fourths of the several States within
from the original 13 states, called the Congress of the
Terms of President and Vice President to begin on Jan. 20;
seven years from the date of its submission to the States by
United States of America and generally known as the Conti
those of Senators, Representatives, Jan. 3.
the Congress.
islatures of the states the Articles of Confederation and Per
nental Congress. In 1777 the Congress submitted to the leg
(Proposed by Congress Mar. 2, 1932: ratification completed
AMENDMENT XXIII.
petual Union, which were ratified by New Hampshire
Jan. 23, 1933.)
Massachusetts, Rhode Island, Connecticut, New York, New
1. The terms of the President and Vice President shall end
Presidential vote for District of Columbia.
Jersey, Pennsylvania, Delaware, Virginia, North Carolina
at noon on the 20th day of January, and the terms of Sena-
(Proposed by Congress June 16, 1960; ratification com-
land South Carolina, and Georgia. and finally, in 1781, by Mary
tors and Representatives at noon on the 3rd day of January,
of the years in which such terms would have ended if this
pleted Mar. 29. 1961.)
The first article of the instrument read: "The stile of this
article had not been ratified; and the terms of their succes-
1. The District constituting the seat of Government of the
confederacy shall be the United States of America." This did
sors shall then begin.
United States shall appoint in such manner as the Congress
act signify a sovereign nation, because the states delegated
2. The Congress shall assemble at least once in every year,
may direct:
A number of electors of President and Vice President
only as those powers they could not handle individually, such
and such meeting shall begin at noon on the 3rd day of Jan-
uary, unless they shall by law appoint a different day.
equal to the whole number of Senators and Representatives
treaties with foreign nations and contract debts for general
power to wage war, establish a uniform currency, make
3. If, at the time fixed for the beginning of the term of the
in Congress to which the District would be entitled if it were
of expenses (such as paying the army). Taxes for the payment
President, the President elect shall have died, the Vice Presi-
a State, but in no event more than the least populous State
dest such debts were levied by the individual states. The presi-
dent elect shall become President. If a President shall not
they shall be in addition to those appointed by the States.
but they shall be considered, for the purposes of the election
States States in Congress assembled." but here the United
United under the Articles signed himself "President of the
have been chosen before the time fixed for the beginning of
his term, or if the President elect shall have failed to qualify,
of President and Vice President, to be electors appointed by
then the Vice President elect shall act as President until a
a State; and they shall meet in the District and perform such
Canada were considered in the plural, a cooperating. group.
not was invited to join the union on equal terms but did
President shall have qualified; and the Congress may by law
duties as provided by the twelfth article of amendment.
provide for the case wherein neither a President elect nor a
2. The Congress shall have power to enforce this article
federal When the war was won it became evident that a stronger
Vice President elect shall have qualified. declaring who shall
by appropriate legislation.
the union was needed to protect the mutual interests of
then act as President, or the manner in which one who is to
Virginia states. The Congress left the initiative to the legislatures.
act shall be selected, and such person shall act accordingly
AMENDMENT XXIV.
until a President or Vice President shall have qualified.
Barring poll tax in federal elections.
from representatives of other states, with the result that delegates
in Jan. 1786 appointed commissioners to meet with
4. The Congress may by law provide for the case of the
sylvania Virginia, Delaware. New York, New Jersey, and Penn-
death of any of the persons from whom the House of Repre-
(Proposed by Congress Aug. 27, 1962; ratification com-
for met at Annapolis. Alexander Hamilton prepared
sentatives may choose a President whenever the right of
pleted Jan. 23. 1964.)
1. The right of citizens of the United States to vote in any for
Madelphia by asking delegates from all states to meet in
choice shall have devolved upon them. and for the case of
Federal in May 1787 "to render the Constitution of the
the death of any of the persons from whom the Senate may
primary or other election for President or Vice President. of
government adequate to the exigencies of the un-
choose a Vice President whenever the right of choice shall
electors for President or Vice President, or for Senator
have devolved upon them.
Representative in Congress, shall not be denied or abridged
appointed by all states except Rhode Island.
Congress endorsed the plan Feb. 21, 1787. Delegates
5. Sections 1 and 2 shall take effect on the 15th day of Oc-
by the United States or any State by reason of failure to ps!
convention met May 14, 1787. George Washington
tober following the ratification of this article (Oct., 1933).
any poll tax or other tax.
6. This article shall be inoperative unless it shall have
2. The Congress shall have power to enforce this article
65 (presiding officer). The states certified
by appropriate legislation.
all of whom were present at all sessions. Of the 55
did not attend. The work was done by
been ratified as an amendment to the Constitution by the
Constitution of the U.S.
of the U.S.
463
AMENDMENT XXV.
Legislatures of three-fourths of the several States within
bling within forty-eight hours for that purpose if not in ses-
seven years from the date of its submission.
Presidential disability and succession.
sion. If the Congress, within twenty-one days after receipt of
the latter written declaration, or, if Congress is not in ses-
(Proposed by Congress July 6, 1965; ratification completed
sion, within twenty-one days after Congress is required to
AMENDMENT XXI.
Feb. 10. 1967.)
assemble, determines by two-thirds vote of both houses that
1. In case of the removal of the President from office or of
the President is unable to discharge the powers and duties of
Repeal of Amendment XVIII.
his death or resignation. the Vice President shall become
his office, the Vice President shall continue to discharge the
same as Acting President; otherwise, the President shall re-
(Proposed by Congress Feb. 20, 1933; ratification completed
President. 2. Whenever there is a vacancy in the office of the Vice
sume the powers and duties of his office.
Dec. 5. 1933.)
1. The eighteenth article of amendment to the Constitu-
President. the President shall nominate a Vice President who
tion of the United States is hereby repealed.
shall take office upon confirmation by a majority vote of
AMENDMENT XXVI.
2. The transportation or importation into any State, Terri-
both houses of Congress.
Lowering voting age to 18 years.
tory, or Possession of the United States for delivery or use
3. Whenever the President transmits to the President pro
therein of intoxicating liquors, in violation of the laws
tempore of the Senate and the Speaker of the House of Rep-
(Proposed by Congress Mar. 23, 1971; ratification com-
thereof, is hereby prohibited.
resentatives his written declaration that he is unable to dis-
pleted July 1. 1971.)
3. This article shall be inoperative unless it shall have
charge the powers and duties of his office. and until he
1. The right of citizens of the United States, who are 18
been ratified as an amendment to the Constitution by con-
transmits to them a written declaration to the contrary, such
years of age or older, to vote shall not be denied or abridged
powers and duties shall be discharged by the Vice President
by the United States or any state on account of age.
ventions in the several States, as provided in the Constitu-
15 Acting President.
2. The Congress shall have the power to enforce this arti-
tion, within seven years from the date of the submission
hereof to the States by the Congress.
4. Whenever the Vice President and a majority of either
cle by appropriate legislation.
the principal officers of the executive departments or of such
other body as Congress may by law provide. transmit to the
PROPOSED AMENDMENT RELATING TO
#27
AMENDMENT XXII.
President pro tempore of the Senate and the Speaker of the
CONGRESSIONAL PAY
House of Representatives their written declaration that the
asof
Limiting Presidential terms of office.
(Proposed by the first Congress Sept. 25, 1789 as one of the
President is unable to discharge the powers and duties of his
(Proposed by Congress Mar. 24, 1947; ratification com-
became the Bill of Rights; ratified as of May 1991 by this
12 amendments to the Constitution, the 10 that were accepted
office. the Vice President shall immediately assume the pow-
pleted Feb. 27. 1951.)
ers and duties of the office as Acting President.
states: Maryland. North Carolina, South Carolina, Delaware.
1. No person shall be elected to the office of the President
Thereafter. when the President transmits to the President
Vermont, Virginia 1789-1791; Ohio 1873; Wyoming 1978;
more than twice, and no person who has held the office of
pro tempore of the Senate and the Speaker of the House of
Maine 1983; Colorado 1984; South Dakota, New Hampshire.
past
President, or acted as President, for more than two years of
Representatives his written declaration that no inability ex-
Arizona, Tennessee. Oklahoma 1985; New Mexico, Indiana.
a term to which some other person was elected President
ists. he shall resume the powers and duties of his office un-
Utah 1986; Montana, Connecticut. Wisconsin, Arkansas 1987;
shall be elected to the office of the President more than
less the Vice President and a majority of either the principal
Georgia, W. Virginia, Louisiana 1988; Iowa, Idaho, Nevada,
month
once. But this Article shall not apply to any person holding
officers of the executive department or of such other body as
Alaska, Oregon, Minnesota, Texas 1989; Kansas. Florida
the office of President when this Article was proposed by
Congress may by law provide. transmit within four days to
1990; N. Dakota 1991. An additional 3 ratifications are
the Congress, and shall not prevent any person who may be
the President pro tempore of the Senate and the Speaker of
needed to attain the requisite three-quarters of the States.)
holding the office of President, or acting as President, during
the House of Representatives their written declaration that
No law, varying the compensation for the services of the
the term within which this Article becomes operative from
the President is unable to discharge the powers and duties of
Senators and Representatives, shall take effect, until an elec-
holding the office of President or acting as President during
his office. Thereupon Congress shall decide the issue, assem-
tion of Representatives shall have intervened.
the remainder of such term.
2. This article shall be inoperative unless it shall have
Origin of the Constitution
been ratified as an amendment to the Constitution by the
The War of Independence was conducted by delegates
attending delegates, 16 failed to sign, and 39 actually signed
Legislatures of three-fourths of the several States within
from the original 13 states. called the Congress of the
Sept. 17, 1787, some with reservations. Some historians have
seven years from the date of its submission to the States by
United States of America and generally known as the Conti-
said 74 delegates (9 more than the 65 actually certified) were
he Congress.
nental Congress. In 1777 the Congress submitted to the leg-
named and 19 failed to attend. These 9 additional persons
islatures of the states the Articles of Confederation and Per-
refused the appointment, were never delegates and never
petual Union, which were ratified by New Hampshire,
counted as absentees. Washington sent the Constitution to
AMENDMENT XXIII.
Massachusetts, Rhode Island, Connecticut, New York, New
Congress with a covering letter and that body, Sept. 28,
Presidential vote for District of Columbia.
Jersey, Pennsylvania, Delaware, Virginia, North Carolina
1787, ordered it sent to the legislatures, "in order to be sub-
South Carolina, and Georgia, and finally, in 1781, by Mary-
mitted to a convention of delegates chosen in each state by
(Proposed by Congress June 16, 1960; ratification com-
land.
the people thereof."
pleted Mar. 29. 1961.)
The first article of the instrument read: "The stile of this
The Constitution was ratified by votes of state conven-
1. The District constituting the seat of Government of the
confederacy shall be the United States of America." This did
tions as follows: Delaware, Dec. 7, 1787, unanimous; Penn-
United States shall appoint in such manner as the Congress
not signify a sovereign nation, because the states delegated
sylvania, Dec. 12. 1787, 43 to 23; New Jersey, Dec. 18,
may direct:
only those powers they could not handle individually, such
1787, unanimous; Georgia, Jan 2. 1788, unanimous; Con-
A number of electors of President and Vice President
as power to wage war, establish a uniform currency, make
necticut. Jan. 9, 1788, 128 to 40; Massachusetts, Feb. 6.
equal to the whole number of Senators and Representatives
treaties with foreign nations and contract debts for general
1788, 187 to 168; Maryland, Apr. 28, 1788, 63 to 11; South
n Congress to which the District would be entitled if it were
expenses (such as paying the army). Taxes for the payment
Carolina, May 23, 1788, 149 to 73; New Hampshire, June
State, but in no event more than the least populous State;
of such debts were levied by the individual states. The presi-
21. 1788, 57 to 46; Virginia, June 25, 1788, 89 to 79; New
hey shall be in addition to those appointed by the States,
dent under the Articles signed himself "President of the
York, July 26, 1788, 30 to 27. Nine states were needed to
ut they shall be considered. for the purposes of the election
United States in Congress assembled," but here the United
establish the operation of the Constitution "between the
f President and Vice President, to be electors appointed by
States were considered in the plural, a cooperating. group.
states so ratifying the same" and New Hampshire was the
State; and they shall meet in the District and perform such
Canada was invited to join the union on equal terms but did
9th state. The government did not declare the Constitution
luties as provided by the twelfth article of amendment.
not act.
in effect until the first Wednesday in Mar. 1789 which was
2. The Congress shall have power to enforce this article
When the war was won it became evident that a stronger
Mar. 4. After that North Carolina ratified it Nov. 21, 1789,
y appropriate legislation.
federal union was needed to protect the mutual interests of
194 to 77; and Rhode Island, May 29, 1790, 34 to 32. Ver-
the states. The Congress left the initiative to the legislatures.
mont in convention ratified it Jan. 10, 1791, and by act of
AMENDMENT XXIV.
Virginia in Jan. 1786 appointed commissioners to meet with
Congress approved Feb. 18, 1791, was admitted into the
representatives of other states, with the result that delegates
Union as the 14th state, Mar. 4, 1791.
Barring poll tax in federal elections.
from Virginia, Delaware, New York, New Jersey, and Penn-
On Sept. 17, 1987, the nation began a four-year celebra-
(Proposed by Congress Aug. 27, 1962: ratification com-
sylvania met at Annapolis. Alexander Hamilton prepared
tion of the 200th anniversary of the signing of the Constitu-
leted Jan. 23. 1964.)
for their call by asking delegates from all states to meet in
tion of the United States.
1. The right of citizens of the United States to vote in any
Philadelphia in May 1787 "to render the Constitution of the
As of April 1987, 32 states have voted to issue convention
rimary or other election for President or Vice President, for
Federal government adequate to the exigencies of the un-
calls to hold a second constitutional convention. Convention
ectors for President or Vice President. or for Senator or
on." Congress endorsed the plan Feb. 21, 1787. Delegates
bills are pending before 11 more state legislatures, while bills
Representative in Congress, shall not be denied or abridged
were appointed by all states except Rhode Island.
to rescind previous calls are under consideration in four
the United States or any State by reason of failure to pay
The convention met May 14, 1787. George Washington
states. When the total reaches 34, the Constitution stipulates
ny poll tax or other tax.
was chosen president (presiding officer). The states certified
that a convention must be held. The convention drive began
2. The Congress shall have power to enforce this article
65 delegates, but 10 did not attend. The work was done by
in the mid 1970s to bring about the consideration of an
appropriate legislation.
55. not all of whom were present at all sessions. Of the 55
amendment requiring a balanced federal budget.
Feb. 8 / Administration of George Bush, 1989
matters. And I don't think it's fair. I do not
Q. Are you thinking about sending U.S.
people out
think that is fair.
troops to Latin America?
on the wane.
So, how you do your business, and to go
The President. Is that a drug question?
We're fortu
the extra mile to get the facts out there,
Nobody's discussed that with me. And
scape lies be
you've got to sort that out. And how I con-
you're talking about one who is very wary
pose to rever
duct myself in even discussing this, I've got
of committing U.S. troops overseas. But I
right way, I
to sort it out a little more clearly because I
said in the campaign, that there could be
people whos
may have contributed-even though I think
times, working cooperatively with leaders
our rise to g
I refused to answer this guy's question-by
in the hemisphere, that American assistance
looking nati
even taking it, to this frenzied air of specu-
would be sought and American assistance
tious, not fo
lation that does not help anybody. It doesn't
would be granted in wiping out insidious
Complacency
help the national security of our country. It
factories that send poison in to poison our
before, not n
doesn't help Senator Tower. It doesn't help
kids. And it has happened in the past. You
And so, to
the standing of the United States Senate. It
recall U.S. choppers were used in coopera-
America and
tion—I think it was either Bolivia or Peru-
might not help the way this President is
address some
viewed because I do not want to be out
Bolivia, I think, and it was effective. So, you
establish som
there as less than fully supportive of my
don't rule something out.
must make
nominee. And that's where I stand. And
But I think in reply to your question-
Federal bud
stems from some planning that supposedly
thank you, and this—
that agenda
is going on that we make some big strike
Q. Are you mad?
to you tonigh
somewhere. And I know nothing about that
The President. Not mad-I'm calm and
My plan has
and would be very reluctant to prove
contained. I don't get mad easy anymore.
some-until I've given it a lot of thought.
to urgent I
Hey listen, we've got to get one drug
future, an att
Thank you all very much.
taxes. This bi
question, please.
ment of how
Q. Secretary Bennett, have you given up
Note: The President spoke at 2:25 p.m. in
There are m
smoking?
the Oval Office at the White House. Wil-
all like to S]
Mr. Bennett. I won't comment on that
liam J. Bennett was National Drug Control
understand t
allegation. [Laughter]
Policy Director-designate.
get our fiscal
Next year
growth, with
Federal Gove
Address on Administration Goals Before a Joint Session of Congress
billion more
February 9, 1989
right-over
with no incre
allocate those
Mr. Speaker, Mr. President, and distin-
tonight I feel as if I'm returning home to
afford to inc
guished Members of the House and Senate,
friends. And I intend, in the months and
amount, but
honored guests, and fellow citizens: Less
years to come, to give you what friends
ities and still
than 3 weeks ago, I joined you on the West
deserve: frankness, respect, and my best
percent in 1
Front of this very building and, looking
judgment about ways to improve America's
meet the tar
over the monuments to our proud past, of-
future. In return, I ask for an honest com-
Rudman-Holl
fered you my hand in filling the next page
mitment to our common mission of
must recogni
of American history with a story of ex-
progress. If we seize the opportunities on
in Federal I
tended prosperity and continued peace.
the road before us, there'll be praise
that not all
And tonight I'm back to offer you my plans
enough for all. The people didn't send us
signed to be i
as well. The hand remains extended; the
here to bicker, and it's time to govern.
I make this
sleeves are rolled up; America is waiting;
And many Presidents have come to this
I are ready t
and now we must produce. Together, we
Chamber in times of great crisis: war and
form a specia
can build a better America.
depression, loss of national spirit. And 8
ate in good f:
that's what i
It is comforting to return to this historic
years ago, I sat in that very chair as Presi-
Chamber. Here, 22 years ago, I first raised
targets and t
dent Reagan spoke of punishing inflation
We cannot
my hand to be sworn into public life. So,
and devastatingly high interest rates and
Government
74
Administration of George Bush, 1989 / Feb. 9
sending U.S.
people out of work-American confidence
government by crisis, will not do. And I ask
on the wane. And our challenge is different.
!rug question?
the Congress tonight to approve several
We're fortunate-a much changed land-
ith me. And
measures which will make budgeting more
scape lies before us tonight. So, I don't pro-
is very wary
sensible. We could save time and improve
pose to reverse direction. We're headed the
verseas. But I
efficiency by enacting 2-year budgets.
right way, but we cannot rest. We're a
here could be
Forty-three Governors have the line-item
people whose energy and drive have fueled
with leaders
veto. Presidents should have it, too. And at
our rise to greatness. And we're a forward-
ican assistance
the very least, when a President proposes to
looking nation-generous, yes, but ambi-
ican assistance
rescind Federal spending, the Congress
tious, not for ourselves but for the world.
; out insidious
should be required to vote on that proposal
Complacency is not in our character-not
to poison our
instead of killing it by inaction. And I ask
before, not now, not ever.
the past. You
the Congress to honor the public's wishes
And so, tonight we must take a strong
ed in coopera-
by passing a constitutional amendment to
America and make it even better. We must
livia or Peru-
address some very real problems. We must
require a balanced budget. Such an amend-
ective. So, you
establish some very clear priorities. And we
ment, once phased in, will discipline both
must make a very substantial cut in the
the Congress and the executive branch.
our question-
Federal budget deficit. Some people find
Several principles describe the kind of
hat supposedly
that agenda impossible, but I'm presenting
America I hope to build with your help in
ome big strike
to you tonight a realistic plan for tackling it.
the years ahead. We will not have the
ing about that
My plan has four broad features: attention
luxury of taking the easy, spendthrift ap-
tant to prove
to urgent priorities, investment in the
proach to solving problems because higher
lot of thought.
future, an attack on the deficit, and no new
spending and higher taxes put economic
taxes. This budget represents my best judg-
growth at risk. Economic growth provides
ment of how we can address our priorities.
jobs and hope. Economic growth enables us
t 2:25 p.m. in
There are many areas in which we would
to pay for social programs. Economic
te House. Wil-
all like to spend more than I propose; I
growth enhances the security of the Nation,
1 Drug Control
understand that. But we cannot until we
and low tax rates create economic growth.
get our fiscal house in order.
I believe in giving Americans greater
Next year alone, thanks to economic
freedom and greater choice. And I will
growth, without any change in the law, the
work for choice for American families,
Federal Government will take in over $80
whether in the housing in which they live,
Congress
billion more than it does this year. That's
the schools to which they send their chil-
right-over $80 billion in new revenues,
dren, or the child care they select for their
with no increases in taxes. And our job is to
young. You see, I believe that we have an
allocate those new resources wisely. We can
obligation to those in need, but that govern-
rning home to
afford to increase spending by a modest
ment should not be the provider of first
e months and
amount, but enough to invest in key prior-
resort for things that the private sector can
u what friends
ities and still cut the deficit by almost 40
produce better. I believe in a society that is
and my best
percent in 1 year. And that will allow us to
free from discrimination and bigotry of any
rove America's
meet the targets set forth in the Gramm-
kind. And I will work to knock down the
an honest com-
Rudman-Hollings law. But to do that, we
barriers left by past discrimination and to
n mission of
must recognize that growth above inflation
build a more tolerant society that will stop
pportunities on
in Federal programs is not preordained,
such barriers from ever being built again.
e'll be praise
that not all spending initiatives were de-
I believe that family and faith represent
didn't send us
signed to be immortal.
the moral compass of the Nation. And I'll
I make this pledge tonight: My team and
to govern.
work to make them strong, for as Benjamin
e come to this
I are ready to work with the Congress, to
Franklin said: "If a sparrow cannot fall to
crisis: war and
form a special leadership group, to negoti-
the ground without His notice, can a great
ate in good faith, to work day and night-if
spirit. And 8
nation rise without His aid?" And I believe
chair as Presi-
that's what it takes-to meet the budget
in giving people the power to make their
targets and to produce a budget on time.
ishing inflation
own lives better through growth and oppor-
We cannot settle for business as usual.
erest rates and
tunity. And together, let's put power in the
Government by continuing resolution, or
hands of people.
75
Feb. 9 / Administration of George Bush, 1989
shoulder in
Three weeks ago, we celebrated the bi-
ble. In education, we cannot tolerate medi-
the charge.
centennial inaugural, the 200th anniversary
ocrity. I want to cut that dropout rate and
Some mo
of the first Presidency. And if you look
make America a more literate nation, be-
treatment to
back, one thing is so striking about the way
cause what it really comes down to is this:
ers. This wil
the Founding Fathers looked at America.
The longer our graduation lines are today,
many innoc
They didn't talk about themselves. They
the shorter our unemployment lines will be
thousands of
talked about posterity. They talked about
tomorrow.
AIDS becau
the future. And we, too, must think in
So, tonight I'm proposing the following
Some will b
terms bigger than ourselves. We must take
initiatives: the beginning of a $500 million
for treatmen
actions today that will ensure a better to-
program to reward America's best schools,
to those urb
morrow. We must extend American leader-
merit schools; the creation of special Presi-
cy is now th
ship in technology, increase long-term in-
dential awards for the best teachers in
used to prot
vestment, improve our educational system,
every State, because excellence should be
the Coast G
and boost productivity. These are the keys
rewarded; the establishment of a new pro-
the Departn
to building a better future, and here are
gram of National Science Scholars, one each
yes, the U.S.
some of my recommendations:
year for every Member of the House and
I mean to
I propose almost $2.2 billion for the Na-
Senate, to give this generation of students a
nals. And le
tional Science Foundation to promote basic
special incentive to excel in science and
will back up
research and keep us on track to double its
mathematics; the expanded use of magnet
the line eve
budget by 1993.
schools, which give families and students
officers. My
I propose to make permanent the tax
greater choice; and a new program to en-
ecution, for
credit for research and development.
courage alternative certification, which will
crime, and
I've asked Vice President Quayle to chair
let talented people from all fields teach in
tences-and
a new Task Force on Competitiveness.
our classrooms. I've said I'd like to be the
means the
And I request funding for NASA [Nation-
"Education President." And tonight, I'd ask
make sure t
al Aeronautics and Space Administration]
and a strong space program, an increase of
you to join me by becoming the "Education
victed there
should not
almost $2.4 billion over the current fiscal
Congress."
year. We must have a manned space sta-
Just last week, as I settled into this new
full. And so
tion; a vigorous, safe space shuttle program;
office, I received a letter from a mother in
caught and
But for al
and more commercial development in
Pennsylvania who had been struck by my
interdiction
space. The space program should always go
message in the Inaugural Address. "Not 12
win this wa
"full throttle up." And that's not just our
hours before," she wrote, "my husband and
demand for
I received word that our son was addicted
ambition; it's our destiny.
will be used
I propose that we cut the maximum tax
to cocaine. He had the world at his feet.
Bright, gifted, personable-he could have
dangers of (
rate on capital gains to increase long-term
ents. We n
investment. History on this is clear-this
done anything with his life. And now he has
must invol
will increase revenues, help savings, and
chosen cocaine." "And please," she wrote,
friends, we
create new jobs. We won't be competitive if
"find a way to curb the supply of cocaine.
we leave whole sectors of America behind.
Get tough with the pushers. Our son needs
and every 0
One prol
This is the year we should finally enact
your help."
mands our
urban enterprise zones and bring hope to
My friends, that voice crying out for help
tinuing com
the inner cities.
could be the voice of your own neighbor,
tragedy of
But the most important competitiveness
your own friend, your own son. Over 23
for educatic
program of all is one which improves edu-
million Americans used illegal drugs last
research to
cation in America. When some of our stu-
year, at a staggering cost to our nation's
If we're
dents actually have trouble locating Amer-
well-being. Let this be recorded as the time
new attitu
ica on a map of the world, it is time for us
when America rose up and said no to drugs.
must prote
to map a new approach to education. We
The scourge of drugs must be stopped. And
to you shor
must reward excellence and cut through
I am asking tonight for an increase of
effective C
bureaucracy. We must help schools that
almost a billion dollars in budget outlays to
plan to red
need help the most. We must give choice to
escalate the war against drugs. The war
which caus
parents, students, teachers, and principals;
must be waged on all fronts. Our new drug
study alon
and we must hold all concerned accounta-
czar, Bill Bennett, and I will be shoulder to
76
Administration of George Bush, 1989 / Feb. 9
lerate
medi-
shoulder in the executive branch leading
action is now. We must make use of clean
and
the charge.
rate
coal. My budget contains full funding, on
nation,
be-
Some money will be used to expand
schedule, for the clean coal technology
to
is
this:
treatment to the poor and to young moth-
agreement that we've made with Canada.
today,
ers. This will offer the helping hand to the
are
We've made that agreement with Canada,
lines
will
be
many innocent victims of drugs, like the
and we intend to honor that agreement.
thousands of babies born addicted or with
AIDS because of the mother's addiction.
We must not neglect our parks. So, I'm
he
following
asking to fund new acquisitions under the
Some will be used to cut the waiting time
$500
million
Land and Water Conservation Fund. We
for treatment. Some money will be devoted
best
schools,
to those urban schools where the emergen-
must protect our oceans. And I support new
special
Presi-
cy is now the worst. And much of it will be
penalties against those who would dump
teachers
in
medical waste and other trash into our
used to protect our borders, with help from
should
be
the Coast Guard and the Customs Service,
oceans. The age of the needle on the beach-
es must end.
a
new
pro-
the Departments of State and Justice, and,
one
each
yes, the U.S. military.
And in some cases, the gulfs and oceans
House
and
I mean to get tough on the drug crimi-
off our shores hold the promise of oil and
of
students
a
nals. And let me be clear: This President
gas reserves which can make our nation
science
and
will back up those who put their lives on
more secure and less dependent on foreign
of
magnet
the line every single day-our local police
oil. And when those with the most promise
and
students
officers. My budget asks for beefed-up pros-
can be tapped safely, as with much of the
to
en-
ecution, for a new attack on organized
Alaska National Wildlife Refuge, we should
which
will
crime, and for enforcement of tough sen-
proceed. But we must use caution; we must
teach
in
tences-and for the worst kingpins, that
respect the environment. And so, tonight
to
be
the
means the death penalty. I also want to
I'm calling for the indefinite postponement
I'd
ask
make sure that when a drug dealer is con-
of three lease sales which have raised trou-
"Education
victed there's a cell waiting for him. And he
bling questions, two off the coast of Califor-
should not go free because prisons are too
nia and one which could threaten the Ever-
this
new
full. And so, let the word go out: If you're
glades in Florida. Action on these three
a
mother
in
caught and convicted, you will do time.
lease sales will await the conclusion of a
truck
by
my
But for all we do in law enforcement, in
special task force set up to measure the
"Not
12
interdiction and treatment, we will never
potential for environmental damage.
husband
and
win this war on drugs unless we stop the
I'm directing the Attorney General and
was
addicted
demand for drugs. So, some of this increase
the Administrator of the Environmental
at
his
feet.
will be used to educate the young about the
Protection Agency to use every tool at their
could
have
dangers of drugs. We must involve the par-
disposal to speed and toughen the enforce-
now
he
has
ents. We must involve the teachers. We
ment of our laws against toxic-waste dump-
she
wrote,
must involve the communities. And, my
ers. I want faster cleanups and tougher en-
of
cocaine.
friends, we must involve ourselves, each
forcement of penalties against polluters.
son
needs
and every one of us in this concern.
In addition to caring for our future, we
One problem related to drug use de-
must care for those around us. A decent
out
for
help
mands our urgent attention and our con-
society shows compassion for the young, the
neighbor,
tinuing compassion, and that is the terrible
elderly, the vulnerable, and the poor. Our
Over
23
tragedy of AIDS. I'm asking for $1.6 billion
first obligation is to the most vulnerable-
drugs
last
for education to prevent the disease and for
infants, poor mothers, children living in
nation's
research to find a cure.
our
poverty-and my proposed budget recog-
as
the
time
If we're to protect our future, we need a
nizes this. I ask for full funding of Medicaid,
no
to
drugs.
new attitude about the environment. We
an increase of over $3 billion, and an expan-
stopped.
And
must protect the air we breathe. I will send
sion of the program to include coverage of
increase
of
to you shortly legislation for a new, more
effective Clean Air Act. It will include a
pregnant women who are near the poverty
outlays
to
line. I believe we should help working fami-
The
war
plan to reduce by date certain the emissions
lies cope with the burden of child care. Our
new
drug
which cause acid rain, because the time for
help should be aimed at those who need it
shoulder
to
study alone has passed, and the time for
most: low-income families with young chil-
77
Feb. 9 / Administration of George Bush, 1989
dren. I support a new child care tax credit
Congress to enact our reform proposals
American pre
that will aim our efforts at exactly those
within 45 days. We must not let this situa-
promise Amer
families, without discriminating against
tion fester. We owe it to the savers in this
I should be
mothers who choose to stay at home.
country to solve this problem. Certainly,
tached to m
Now, I know there are competing propos-
the savings of Americans must remain
coming year:
als. But remember this: The overwhelming
secure. Let me be clear: Insured depositors
to those prior
majority of all preschool child care is now
will continue to be fully protected, but any
that I've spok
provided by relatives and neighbors and
plan to refinance the system must be ac-
freeze must 1
churches and community groups. Families
companied by major reform. Our proposals
budget agree
who choose these options should remain eli-
will prevent such a crisis from recurring.
spelled out in
gible for help. Parents should have choice.
The best answer is to make sure that a mess
without raisi
And for those children who are unwanted
like this will never happen again. The ma-
rates reforms
or abused or whose parents are deceased,
jority of thrifts in communities across the
I've directe
we should encourage adoption. I propose to
Nation have been honest. They've played a
cil to review
reenact the tax deduction for adoption ex-
major role in helping families achieve the
fense policies
penses and to double it to $3,000. Let's
make it easier for these kids to have parents
dream of home ownership. But make no
90 days to er
mistake, those who are corrupt, those who
resources me
who love them.
break the law, must be kicked out of the
egies. I'm als
We have a moral contract with our senior
citizens. And in this budget, Social Security
business; and they should go to jail.
Defense with
is fully funded, including a full cost-of-living
We face a massive task in cleaning up the
to improve t
waste left from decades of environmental
ess and man
adjustment. We must honor our contract.
neglect at America's nuclear weapons
which will
We must care about those in the shadow
plants. Clearly, we must modernize these
commission
of life, and I, like many Americans, am
deeply troubled by the plight of the home-
plants and operate them safely. That's not
can only be
less. The causes of homelessness are many;
at issue; our national security depends on it.
the Congres:
the history is long. But the moral impera-
But beyond that, we must clean up the old
We need fe
mess that's been left behind. And I propose
bureaucracy.
tive to act is clear. Thanks to the deep well
ment and 2
of generosity in this great land, many orga-
in this budget to more than double our cur-
and don't t
nizations already contribute, but we in gov-
rent effort to do so. This will allow us to
ernment cannot stand on the sidelines. In
identify the exact nature of the various
congressiona
tion's militar
my budget, I ask for greater support for
problems so we can clean them up, and
sion on tha
emergency food and shelter, for health
clean them up we will.
[laughter].
services and measures to prevent substance
We've been fortunate during these past 8
Securing
abuse, and for clinics for the mentally ill.
years. America is a stronger nation than it
haps the m
And I propose a new initiative involving
was in 1980. Morale in our Armed Forces
address ton
the full range of government agencies. We
has been restored; our resolve has been
time of extr:
must confront this national shame.
shown. Our readiness has been improved,
this century
There's another issue that I've decided to
and we are at peace. There can no longer
democracy,
mention here tonight. I've long believed
be any doubt that peace has been made
such a po
that the people of Puerto Rico should have
more secure through strength. And when
around the
the right to determine their own political
America is stronger, the world is safer.
leadership
future. Personally, I strongly favor state-
Most people don't realize that after the
America ha
hood. But I urge the Congress to take the
successful restoration of our strength, the
world has it
necessary steps to allow the people to
Pentagon budget has actually been reduced
And it's
decide in a referendum.
in real terms for each of the last 4 years.
world, and
Certain problems, the result of decades of
We cannot tolerate continued real reduc-
Prudence
unwise practices, threaten the health and
tion in defense. In light of the compelling
we try to
security of our people. Left unattended,
need to reduce the deficit, however, I sup-
the change
they will only get worse. But we can act
port a 1-year freeze in the military budget,
cies, and t
now to put them behind us.
something I proposed last fall in my flexible
I've persor
Earlier this week, I announced my sup-
freeze plan. And this freeze will apply for
Gorbachev
port for a plan to restore the financial and
only 1 year, and after that, increases above
review we
moral integrity of our savings system. I ask
inflation will be required. I will not sacrifice
We will no
78
Administration of George Bush, 1989 / Feb. 9
n proposals
American preparedness, and I will not com-
for peace. The fundamental facts remain
this situa-
promise American strength.
that the Soviets retain a very powerful mili-
ivers in this
I should be clear on the conditions at-
tary machine in the service of objectives
Certainly,
tached to my recommendation for the
which are still too often in conflict with
ust remain
coming year: The savings must be allocated
ours. So, let us take the new openness seri-
d depositors
to those priorities for investing in our future
ously, but let's also be realistic. And let's
ted, but any
that I've spoken about tonight. This defense
always be strong.
nust be ac-
freeze must be a part of a comprehensive
There are some pressing issues we must
nr proposals
budget agreement which meets the targets
address. I will vigorously pursue the Strate-
1 recurring.
spelled out in Gramm-Rudman-Hollings law
gic Defense Initiative. The spread, and
that a mess
without raising taxes and which incorpo-
even use, of sophisticated weaponry threat-
in. The ma-
rates reforms in the budget process.
S across the
ens global security as never before. Chemi-
I've directed the National Security Coun-
cal weapons must be banned from the face
've played a
cil to review our national security and de-
of the Earth, never to be used again. And
achieve the
fense policies and report back to me within
look, this won't be easy. Verification-ex-
it make no
90 days to ensure that our capabilities and
traordinarily difficult, but civilization and
, those who
resources meet our commitments and strat-
egies. I'm also charging the Department of
human decency demand that we try. And
out of the
ail.
Defense with the task of developing a plan
the spread of nuclear weapons must be
ning up the
to improve the defense procurement proc-
stopped. And I'll work to strengthen the
vironmental
ess and management of the Pentagon, one
hand of the International Atomic Energy
which will fully implement the Packard
Agency. Our diplomacy must work every
r weapons
commission report. Many of these changes
day against the proliferation of nuclear
rnize these
can only be made with the participation of
weapons.
That's not
pends on it.
the Congress, and so, I ask for your help.
And around the globe, we must continue
1 up the old
We need fewer regulations. We need less
to be freedom's best friend. And we must
d I propose
bureaucracy. We need multiyear procure-
stand firm for self-determination and de-
mocracy in Central America, including in
ble our cur-
ment and 2-year budgeting. And frankly-
allow us to
and don't take this wrong-we need less
Nicaragua. It is my strongly held conviction
the various
congressional micromanagement of our na-
that when people are given the chance
m up, and
tion's military policy. I detect a slight divi-
they inevitably will choose a free press,
sion on that question, but nevertheless-
freedom of worship, and certifiably free and
[laughter].
fair elections.
these past 8
tion than it
Securing a more peaceful world is per-
We must strengthen the alliance of the
med Forces
haps the most important priority I'd like to
industrial democracies, as solid a force for
address tonight. You know, we meet at a
peace as the world has ever known. And
e has been
time of extraordinary hope. Never before in
this is an alliance forged by the power of
1 improved,
this century have our values of freedom,
our ideals, not the pettiness of our differ-
n no longer
been made
democracy, and economic opportunity been
ences. So, let's lift our sights to rise above
And when
such a powerful and intellectual force
fighting about beef hormones, to building a
around the globe. Never before has our
better future, to move from protectionism
safer.
leadership been so crucial, because while
to progress.
at after the
America has its eyes on the future, the
I've asked the Secretary of State to visit
rength, the
world has its eyes on America.
Europe next week and to consult with our
en reduced
And it's a time of great change in the
allies on the wide range of challenges and
ast 4 years.
world, and especially in the Soviet Union.
opportunities we face together, including
real reduc-
Prudence and common sense dictate that
East-West relations. And I look forward to
compelling
we try to understand the full meaning of
meeting with our NATO partners in the
ever, I sup-
the change going on there, review our poli-
near future.
ary budget,
cies, and then proceed with caution. But
And I, too, shall begin a trip shortly to
my flexible
I've personally assured General Secretary
the far reaches of the Pacific Basin, where
ill apply for
Gorbachev that at the conclusion of such a
eases above
the winds of democracy are creating new
review we will be ready to move forward.
hope and the power of free markets is un-
not sacrifice
We will not miss any opportunity to work
leashing a new force. When I served as our
79
Feb. 9 / Administration of George Bush, 1989
representative in China 14 or 15 years ago,
nomic mainstream. We need your talents in
have pass
few would have predicted the scope of the
America's work force. Disabled Americans
straints, th
changes we've witnessed since then. But in
must become full partners in America's op-
ed by tro
preparing for this trip, I was struck by
portunity society.
hope. Wel
something I came across from a Chinese
To the families of America watching to-
We Ameri
writer. He was speaking of his country, dec-
night in your living rooms, hold fast to your
sion of g
ades ago, but his words speak to each of us
dreams because ultimately America's future
those timi
in America tonight. "Today," he said,
rests in your hands.
us the tool
"we're afraid of the simple words like
And to my friends in this Chamber, I ask
'goodness' and 'mercy' and 'kindness.' My
your cooperation to keep America growing
friends, if we're to succeed as a nation, we
while cutting the deficit. That's only fair to
must rediscover those words.
those who now have no vote: the genera-
In just 3 days, we mark the birthday of
Message
tions to come. Let them look back and say
Abraham Lincoln, the man who saved our
that we had the foresight to understand
February
Union and gave new meaning to the word
"opportunity." Lincoln once said: "I hold
that a time of peace and prosperity is not
the time to rest but a time to press forward,
To the Cor
that while man exists, it is his duty to im-
a time to invest in the future.
I hereby
prove not only his own condition but to
And let all Americans remember that no
assist in ameliorating that of mankind." It is
Message I
this broader mission to which I call all
problem of human making is too great to be
of the Cor
Americans, because the definition of a suc-
overcome by human ingenuity, human
ing a Bett
cessful life must include serving others.
energy, and the untiring hope of the human
ther descr
spirit. I believe this. I would not have asked
mentioned
And to the young people of America, who
sometimes feel left out, I ask you tonight to
to be your President if I didn't. And tomor-
gress to
give us the benefit of your talent and
row the debate on the plan I've put for-
energy through a new program called YES,
ward begins, and I ask the Congress to
for Youth Entering Service to America.
come forward with your own proposals.
To those men and women in business,
Let's not question each other's motives.
Remark
remember the ultimate end of your work:
Let's debate, let's negotiate; but let us solve
Followir
to make a better product, to create better
the problem.
lives. I ask you to plan for the longer term
Recalling anniversaries may not be my
Ottawa,
and avoid that temptation of quick and easy
specialty in speeches-[laughter]-but to-
February
paper profits.
night is one of some note. On February 9th,
To the brave men and women who wear
1941, just 48 years ago tonight, Sir Winston
The Pres
the uniform of the United States of Amer-
Churchill took to the airwaves during Brit-
of Mrs. B
ica, thank you. Your calling is a high one: to
ain's hour of peril. He'd received from
others, this
be the defenders of freedom and the guar-
President Roosevelt a hand-carried letter
quoting Longfellow's famous poem: "Sail
important
antors of liberty. And I want you to know
on, O Ship of State! Sail on, 0 Union, strong
importance
that this nation is grateful for your service.
To the farmers of America, we appreciate
and great! Humanity with all its fears, With
ship with
the bounty you provide. We will work with
all the hopes of future years, Is hanging
est trading
share a lor.
you to open foreign markets to American
breathless on thy fate!" And Churchill re-
agricultural products.
sponded on this night by radio broadcast to
many com
a nation at war, but he directed his words
an opportu
And to the parents of America, I ask you
eral relati
to get involved in your child's schooling.
to Franklin Roosevelt. "We shall not fail or
falter," he said. "We shall not weaken or
and very a
Check on the homework, go to the school,
about the
meet the teachers, care about what is hap-
tire. Give us the tools, and we will finish
chance to
pening there. It's not only your child's
the job."
indeed, ou
future on the line, it's America's.
Tonight, almost half a century later, our
peril may be less immediate, but the need
now, you r
To kids in our cities, don't give up hope.
was outstar
Say no to drugs; stay in school. And, yes,
for perseverance and clear-sighted fortitude
The Prin
"Keep hope alive."
is just as great. Now, as then, there are
concerns tl
To those 37 million Americans with some
those who say it can't be done. There are
referred hi
form of disability, you belong in the eco-
voices who say that America's best days
American
80
Administration of George Bush, 1989 / Feb. 10
your talents in
have passed, that we're bound by con-
Thank you. God bless you, and God bless
Americans
straints, threatened by problems, surround-
America.
America's op-
ed by troubles which limit our ability to
hope. Well, tonight I remain full of hope.
Note: The President spoke at 9:07 p.m. in
watching
to-
We Americans have only begun on our mis-
fast
the House Chamber of the Capitol. The ad-
to
your
sion of goodness and greatness. And to
dress was broadcast live on nationwide
merica's
future
those timid souls, I repeat the plea: "Give
radio and television.
us the tools, and we will do the job."
Chamber,
I
ask
nerica growing
only
fair
to
the
genera-
Message to the Congress Transmitting the Fiscal Year 1990 Budget
back and say
to
understand
February 9, 1989
osperity is not
press forward,
To the Congress of the United States:
these proposals and renew my invitation to
I hereby transmit a supplement to the
the congressional leadership to work togeth-
ember
that
no
Message I am delivering to the Joint Session
er to assure that America is united, strong,
too
great
to
be
of the Congress tonight. It is titled "Build-
at peace, and fiscally sound.
nuity,
human
ing a Better America," and it contains fur-
of
the
human
ther description of the plans and proposals
GEORGE BUSH
not
have
asked
mentioned in the Message. I urge the Con-
The White House,
And
tomor-
gress to give favorable consideration to
February 9, 1989.
I've put for-
Congress to
wn
proposals.
her's
motives.
Remarks and a Question-and-Answer Session With Reporters
but
let
us
solve
Following a Luncheon With Prime Minister Brian Mulroney in
not be my
Ottawa, Canada
hter]-but
to-
February 10, 1989
February 9th,
it, Sir Winston
The President. Let me just say on behalf
during Brit-
move on forward with setting limits, with
of Mrs. Bush, our Secretary of State, and
received
from
legislation, and then moving to discussions
others, this has been a good visit. It is an
-carried
letter
with Canada, leading to an accord that I
important visit because it symbolizes the
"Sail
think will be beneficial to both countries.
poem:
importance that we place on the relation-
Union, strong
And so, that problem-and it has been a
ship with Canada. We're each other's larg-
its fears, With
problem-is one that we are both deter-
est trading partners. We are friends. We
Is hanging
mined to move forward towards solution. In
share a long, peaceful border, and we have
Churchill re-
terms of the trade agreement, we, of
many common interests. And today we had
0 broadcast to
an opportunity to discuss not just the bilat-
course, have saluted the courageous position
his words
taken by the Prime Minister of Canada. We
eral relationship that is very, very strong
hall not fail or
and very good but we had a chance to talk
have great respect for that in the United
ot weaken or
about the East-West relationship. I had a
States; and we want to now do our part,
we will finish
chance to talk about the problems on trade;
part of the United States, to follow through
indeed, our trade ministers are talking right
with whatever implementation is required.
ury
later,
our
now, you might say. And so, I felt the visit
So, the mood was upbeat, the spirit good,
but the need
was outstanding.
and I am very glad that this was my first
thted fortitude
The Prime Minister and I reviewed the
visit outside of the continental United States
en, there are
concerns that he has about acid rain; and I
as President. And we will keep in touch,
ne. There are
referred him to what I said last night to the
and each of us has pledged to see that this
best days
American people: my determination to
strong relationship becomes even stronger.
81
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The Heritage Foundation 214 Massachusetts Avenue, N.E. Washington, D.C. 20002-4999 (202)546-4400 Telex:440235
to.
The Thomas A. Roe Institute for Economic Policy Studies
June 4, 1992
SOLVING THE FEDERAL SPENDING CRISIS
WITH A BALANCED BUDGET AMENDMENT
Daniel J. Mitchell
John M. Olin Fellow
INTRODUCTION
Congress soon will vote on an amendment to the Constitution requiring that the fed-
eral government balance its budget each year. Unlike previous efforts to enact such an
amendment, which failed to gain approval in Congress, supporters are confident that
they have the two-thirds majority support needed in each chamber to send an amend-
ment to the states for ratification.
Opinion polls over the past decade have found that the overwhelming majority of
Americans favor a balanced budget amendment as a means of controlling the size of
the federal government. Yet this goal will not necessarily be achieved unless the
amendment explicitly restricts government spending. If the amendment only requires a
balanced budget, lawmakers could evade tough decisions on spending priorities by
raising taxes. Firm language either limiting taxes or capping total spending thus is
needed to guarantee that a balanced budget requirement does not degenerate into an
annual excuse to raise taxes.
A balanced budget amendment will improve America's economic performance only
if the amendment results in smaller government. A well-crafted balanced budget
amendment, one that forces lawmakers to restrain the growth of federal spending, will
reduce the amount of the economy's output taken by government. By leaving more re-
sources in the productive, private sector of the economy, a properly written balanced
budget amendment will stimulate job creation and raise living standards for Americans.
There are two ways of crafting such an amendment.
Option #1: The amendment can specify a limit on total federal spending as a per-
centage of gross national product (GNP). House Joint Resolution 143, intro-
duced by Representative Jon Kyl, the Arizona Republican, contains such a pro-
vision. Unlike a "simple" balanced budget amendment, an amendment with a
spending limit removes the incentive to increase taxes, since additional reve-
nues could not be used to raise spending above the constitutional limit.
Note: Nothing written here is to be construed as necessarily reflecting the views of The Heritage Foundation or as an eltempt
to aid or hinder the passage of any bill before Congress.
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Option #2: A balanced budget amendment can include a tax limitation provision.
Senate Joint Resolution 182, proposed by Robert Kasten, the Wisconsin Repub-
lican, and House Joint Resolution 248, sponsored by Representative Joe Barton,
the Texas Republican, and Representative Billy Tauzin, the Louisiana Demo-
crat, both contain language requiring a three-fifths "supermajority" in each
chamber to raise taxes. Under this option, the extra votes needed to raise taxes,
combined with the balanced budget requirement, would in practice force Con-
gress to exercise greater control on federal spending.
Unfortunately, the proposed balanced budget amendments with the most co-spon-
sors in each House of Congress do not include such provisions to control the amount
of federal spending. House Joint Resolution 290, sponsored by Charles Stenholm, the
Texas Democrat, and Senate Joint Resolution 18, sponsored by Paul Simon, the
Illinois Democrat, each lacks effective tax or spending control language.
Nevertheless, even a watered-down amendment, such as those authored by Sten-
holm and Simon, would be better than no balanced budget amendment at all. If politi-
cians sought to raise taxes as the way to comply with the amendment, as likely would
happen under the Stenholm and Simon versions, opposition from American taxpayers
probably would create a hostile atmosphere to tax hikes and force lawmakers to take
action to trim at least some of the fat from the federal budget and to set more accept-
able spending priorities.
Anything short of a constitutional amendment is not likely to succeed in solving the
federal spending crisis. Even legislation which restricts the growth of federal spending,
such as the 1985 Gramm-Rudman-Hollings Deficit Reduction Act, proved imperfect
since Congress has the authority to repeal legislation when it restricts their appetite for
more spending. Only an amendment provides the ironclad discipline needed to impose
fiscal responsibility.
WHY CONSTITUTIONAL REFORM IS NEEDED
The fiscal year 1992 federal budget is a record $1.475 trillion. Nearly $400 billion
of this is to be financed by government borrowing, up from $150 billion as recently as
1989. The combination of record spending and record deficits underscores the need for
a strong balanced budget amendment. Federal lawmakers have demonstrated year after
year that despite all their promises, they are unwilling or unable to resist demands for
more spending from special interest groups.
The last time the federal budget was in balance was 1969. Since that year, deficit
spending has added $2.8 trillion to America's national debt, accounting for nearly 90
percent of today's total debt. 1
1 The "publicly held" debt is the most appropriate measure of how much federal borrowing affects the economy. This
represents the accumulation of past deficit spending, and will exceed $3 trillion by the end of 1992, according to
Office of Management and Budget estimates. The gross federal debt, which includes government debt in federal
government accounts such as the Social Security Trust Fund, is projected to reach $4 trillion before the year is over.
The additional $1 trillion figure is simply money the government owes itself under the bookkeeping schemes set up
for various pension and trust fund accounts. This figure has little economic significance beyond representing such
2
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Twenty-three years of deficit spending are responsible for about $180 billion of the
nearly $200 billion in interest payments that will be paid this year on the national debt.
And while opponents
Chart 1
of a balanced budget
Annual Federal Deficits: 1970-1992
amendment say the na-
Billions of Current Dollars
tional debt is of little
$400
importance, that it is
Nixon
Ford
Carter
Reagan
Bus
simply money we owe
ourselves, interest pay-
$300
ments this year on the
national debt will
8200
amount to more than
$3,300 for every fam-
ily of four in America.
$100
Every dollar of defi-
cit spending places a
80
1970 1972 1974 1975 1978 1980 1982 1984 1988 1988 1990 1992
financial burden upon
Note: Date are for riscel years. 1992 figure estimated. A President's budget record starte
with the flecal year following his Insuguration. The budget for FY 1951, for example,
future generations. It
was signed by President Carter in the fall of 1980.
Bourse: Budget of the us Government, FY 1993.
Heritage DataChart
is the children and
grandchildren of today's taxpayers who will bear the burden for this profligacy, just as
the $200 billion of net interest payments in this year's budget are the price Americans
are paying for excessive federal spending in the past. As long as deficits grow un-
checked, interest payments will consume ever growing percentages of future budgets,
a burden that will be borne by tomorrow's taxpayers.
While fairness to future generations should be a sufficient argument against deficit
spending, there is a more immediate reason to balance the budget. The ability to en-
gage in deficit spending, and thus pass on the cost of programs to future generations,
allows lawmakers to
Chart 2
spend more money-
Federal Interest Payments on the
which means dollars are
National Debt
denied to the private sec-
Billions of Current Dollars
tor. And just as taxes re-
8200
duce economic growth
by reducing incentives
laterest Payments Currently Male
$150
Up 14% of the Federal Budget
to produce goods and
create jobs, government
$100
borrowing dampens eco-
nomic growth by forc-
850
ing interest rates up
slightly and supplanting
so
the borrowing desires of
1970 1978 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992
consumers, homeown-
ers, and investors. A bal-
Note: Date are for floosi years. 1992 tigure estimated.
Course Budget of the us Government, FY 1993.
Heritage DateChart
anced budget amend-
things as excess Social Security revenues that already have been spent on other government programs.
3
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ment halts this pattern. An amendment prohibits government borrowing as a means of
financing government spending, and-assuming there is a constitutional or political
brake on new taxes-increases economic growth by reducing the overall burden of
federal spending.
THE GROWING PROBLEM OF DEFICIT SPENDING
For much of America's history, a balanced budget amendment would have been an
unnecessary addition to the Constitution. The reason: The federal government operated
in deficit only during wars or serious economic downturns. Usually the government
ran a budget surplus, as policy makers felt morally obliged to pay off debts incurred in
the past. Beginning in the mid-1960s, however, this unwritten balanced budget consen-
sus began to break down. This breakdown was in large part due to the popularity of
now-discredited economic theories, especially that of the British thinker John Maynard
Keynes, which argued that deficit spending was somehow good for the economy-in-
deed the key to fast economic growth. Politicians understandably seized upon these
theories to justify spending programs designed to funnel money to their constituents
and to powerful
Chart 3
interest groups
without the need
Federal Deficit as a Share of GDP
to raise taxes.
Percent of Gross Domestic Product
8%
The erosion of
Carter
Reagan
Bush
fiscal responsibil-
7%
ity in the 1960s
0%
had an immediate
5%
impact. Rapidly
escalating federal
4%
spending on
8%
Great Society wel-
Gramm-Rudman
2%
fare programs,
Limits in Effect*
particularly under
1%
Richard Nixon
0%
and Gerald Ford,
1978
1980
1982
1984
1988
1988
1990
1992
soon pushed the
in 1990, the President and Congress used accounting gimicks and unreallatic
economic assumptions to exceed the Gremm-Rudman limits.
deficit to then-re-
Note: Date are for flscal years. 1992 figure estimated.
Source: Budget of the U.S. Government, FY 1993.
Heritage DateChart
cord levels. In-
deed, as a percentage of gross domestic product (GDP), the federal deficit was higher
in 1975 and 1976 than in all but the first fiscal year of Ronald Reagan's second term.
The deficit declined slightly between 1976 and 1979, but progress was brief. It began
to rise sharply once again in the latter years of the Carter Administration, as large in-
creases in federal spending pushed up federal borrowing. The rising deficit in these
years was especially alarming, since the tax burden simultaneously was increasing,
largely as a result of inflation-induced bracket creep. The surge in federal spending un-
leashed during the Carter Administration continued into the early Reagan years. All
told, federal spending jumped from 20.7 percent of GDP in 1979 to 24.4 percent of
GDP in 1983.
4
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DEPT+
2024566218,#
In combination with a temporary drop in tax revenue during the 1981-1982 recos-
sion, this four-year spending expansion pushed the deficit over the $200 billion mark
in 1983, consuming what was then a peacetime record of 6.3 percent of GDP. Once
the strong economic
expansion of the
Chart 4
1980s began, how-
Federal Spending as a Share of GDP
ever, the deficit
Percent of Gross Domestic Product
began slowly to
26%
Nixon
Ford
Carter
Reagan
Bush
shrink. Increased
economic activity
and job creation
24%
meant higher per-
sonal and business
22%
incomes. This in
turn led to record in-
creases in tax collec-
20%
tions-even though
tax rates were
18%
sharply lowered by
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
the Economic Re-
Note: Date are for fiscal years. 1992 figure estimated.
covery Tax Act en-
Bouroe: Budget of the U.S. Government, FY 1998.
Heritage DataChart
acted in 1981.
The deficit did not fall sharply, however, until the passage of the Gramm-Rudman-
Hollings Deficit Reduction Act in 1985. 12 Gramm-Rudmanneverworkedaswellasits
supporters hoped-and critics feared-but the growth rate of federal spending was cut
by more than half while the law was in effect, even after adjusting for inflation. This
mild clampdown on spending paid big dividends in deficit reduction, with red ink con-
suming a smaller percentage of GDP in every successive year during Ronald Reagan's
second term. By Reagan's last fiscal year, the budget deficit was down to 3.0 percent
of GDP.
Unfortunately, the progress achieved under Ronald Reagan was quickly undone
under George Bush. Adjusted for inflation, domestic spending in the past three years
has grown thirteen times faster than it did under Ronald Reagan, and more than twice
as fast as it did under Jimmy Carter. Total federal spending now consumes more than
25 percent of America's gross national product, up sharply from 22 percent when
Reagan left office. The 1990 budget deal, which increased taxes and spending, de-
serves most of the blame for deteriorating fiscal conditions. The resulting recession
meant a dropoff in tax revenue collections. This slowdown, coupled with the surge of
new spending in the 1990 budget agreement, has pushed the 1992 deficit to more than
$399 billion according to Administration estimates. To make matters worse, the only
2 The key feature of Gramm-Rudman was the creation of fixed annual deficit targets which became smaller each
successive year until the budget was balanced. If Congress approved a budget with a projected deficit more than $10
billion above the Gramm-Rudman deficit target, a process called sequestration occurred, automatically reducing the
estimated spending levels for that upcoming year by the amount necessary to bring the deficit down to the legally
mandated level.
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law which had restrained the budget deficit-the Gramm-Rudman Act-was emascu-
lated as part of the 1990 budget deal. 3
CRAFTING A LOOPHOLE-FREE BALANCED BUDGET AMENDMENT
The generic
Chart 5
problem with
a tough law
The Exploding National Debt
like Gramm-
Trillions of Current Dollars
Rudman is
83.5
that there is
nothing to
$3
Since 1970, the
stop a future
National Debt Has
$2.5
Congress
Increased Ten-Fold
from repeal-
82
ing it. The
$1.6
only perma-
nent answer
$1
to the federal
$0.5
spending cri-
sis is a consti-
$0
tutional
1970 1972 1974 1978 1976 1980 1982 1984 1985 1985 1990 1992
amendment.
Note: Date are for flacal years. 1992 figure estimated.
As with a
Source: Budget of the U.S. Government, FY 1983.
Heritage DataOhart
law, of
course, an amendment is only as good as its language, and the way that language is in-
terpreted by the U.S. Supreme Court. Supporters of a balanced budget amendment
tend to assume it will force Congress to restrain the growth of federal spending in
order to eliminate the deficit. But approval of a weak amendment will not necessarily
lead to this result. The reason the budget deficit exists today is that legislators are sub-
ject to political pressures to increase federal spending. The same political pressures
will exist if a balanced budget amendment is ratified, and politicians still will have a
means to satisfy pressure for spending-a hike in taxes. Thus a simple amendment
would not necessarily force program reforms and spending cuts, but merely replace
borrowing with higher taxes.
The balanced budget amendments introduced by Senator Simon and Representative
Stenholm only require that the budget be balanced. The Simon and Stenholm amend-
ments do not limit spending. They do not preclude massive tax increases. Nor do they
force Congress to eliminate useless and outdated programs. Indeed, Representative
Leon Panetta, the California Democrat and Chairman of the House Budget Committee,
3 Gramm-Rudman was the law of the land for the first fiscal year of the Bush Administration. Unfortunately, OMB
Director Richard Darman and congressional leaders agreed to widespread use of budget gimmicks and dishonest
economic assumptions to evade the law's controls, a practice not countenanced by James Miller, OMB Director
during Reagan's second term. In addition to being bad policy, the practice under Bush also made It that much more
difficult to reach the deficit target the following year, which stoked up pressure for repeal of Gramm-Rudman.
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already has stated his intention to use the balanced budget amendment to force further
tax hikes. Along with Representative David Obey, the Wisconsin Democrat, Panetta
has even gone so far as to suggest that an automatic tax hike provision should be
added to the congressional budget process.
HOW REVENUE ESTIMATES COULD DERAIL AN AMENDMENT
Another concern in crafting a balanced budget amendment is the method used in
Congress to estimate the revenue effects of changes in the tax code. The agencies of
the legislative branch responsible for revenue estimates, the Congressional Budget Of-
fice (CBO) and Joint Committee on Taxation (JCT), assume in their econometric mod-
els that tax increases and tax cuts have no significant impact on taxpayer behavior. As
a result, the projected revenue from any tax increase almost certainly is going to be
overstated. And if Congress uses these estimates when trying to comply with a bal-
anced budget requirement, the potential for crises is high.
The JCT, for instance, was asked in 1988 by Senator Robert Packwood, the Oregon
Republican who is the ranking member on the Finance Committee, to estimate the rev-
enue impact of a 100 percent tax rate on income above $200,000. According to the
JCT, that would generate $104 billion the first year, and $204 billion the second year,
with larger amounts each successive year. As Senator Packwood pointed out, this JCT
estimate "assumes people will work if they have to pay all their money to the Govern-
ment. They will work forever and pay all of the money to the Government, when
clearly anyone in their right mind will not. Yet what if Congress enacted such a tax
hike for purposes of balancing the budget?
Congressional revenue estimates systematically exaggerate the revenue gains associ-
ated with a tax increase and overstate the revenue losses caused by tax rate reductions.
But economic theory and all the evidence show that taxes do alter behavior and thus
taxable income. Higher taxes, for instance, reduce incentives to engage in the eco-
nomic activity being taxed. Depending on how much the incentives are reduced, a tax
increase may even cause revenues to fall compared with the amount that would have
been raised without the hike. In part because of the tax increase imposed by the 1990
budget agreement, for instance, tax revenues over the 1991-1995 time period will be
$483.2 billion lower compared to estimates for the same time period made in the sum-
mer of 1990-before taxes were raised. In other words, revenues fell approximately
$3 for every $1 the agreement was supposed to raise.
Such deeply flawed JCT and CBO revenue estimates contribute to misguided tax
and spending policies under the current budget process. But if a balanced budget
amendment were in effect, the impact of blased revenue estimates would be even more
serious. Imagine a situation, under a balanced budget requirement, in which Congress
enacted a tax increase projected by the JCT to raise $25 billion in order to balance the
upcoming fiscal year's budget. Because of the deficiencies in the JCT model, at some
point during the year it would become apparent that revenues were running below pro-
jections. This would lead to pressure for additional tax increases to comply with the
4
Congressional Record, November 14, 1989, p. S 15534.
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REVENUE PROJECTIONS DROPPED
SUBSTANTIALLY AFTER 1990 TAX HIKE
(Billions of Dollars)
Year
1991
1992
1993
1994
1995
Revenue Projections:
Before Tax Increase
1121.7
1194.5
1278.7
1363.1
1441.1
Revenue Projections:
After Tax Increase
1054.3
1081.0
1168.4
1264.9
1347.3
Revenue "Loss"
67.4
113.5
110.3
98.2
93.8
Sources: Pre-Tax projections from Mid-Session Review of the Budget, Office of Manage-
ment and Budget, July 1990; Post-Tax projections from Budget of the United States Govern-
ment, FY1993, Office of Management and Budget, January 1992.
amendment. But if enacted (rather than spending cuts) the tax hike likely would further
depress tax collections because of its impact on the economy. Would Congress simply
waive the balanced budget requirement for the year? This probable result of flawed
revenue estimates underscores the importance of a tax limitation in any amendment.
TWO WAYS TO CONTROL FEDERAL SPENDING
In order to be truly effective and economically sound, a constitutional amendment to
balance the budget must restrict the overall size of government. There are two methods
to achieve this.
OPTION #1: Include A Specific Cap On Total Spending.
A limit on total spending is included in House Joint Resolution 143, introduced
by Jon Kyl, the Arizona Republican. Under the Kyl balanced budget amendment,
federal outlays would be tied to the nation's economic output, with total spending
limited to 19 percent of GNP.
Some have charged that the Kyl version is flawed because it would give Congress
and the Administration an incentive to use grossly optimistic GNP estimates to permit
more spending. The Kyl amendment, however, restricts spending in any year to no
more than the GNP of the calendar year preceding the new fiscal year. For example,
when preparing a budget for the 1995 fiscal year, which begins October 1, 1994, law-
makers would have to limit spending to 19 percent of GNP in the 1993 calendar year.
This mandated use of an already determined number would prevent the manipulation
of economic assumptions feared by critics. Since higher taxes could not be used to in-
crease spending beyond the levels allowed by the Kyl amendment, the political incen-
tive to raise taxes would largely disappear. Moreover, since spending increases would
be linked to the economy's overall size, politicians actually would have an incentive to
encourage economic growth. The faster the economy grows, the more federal spending
could increase. Similarly, a shrinking economy would mean less spending.
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OPTION #2: Require A Supermajority In Congress To Increase Taxes.
Another way to strengthen a balanced budget amendment is to include a provi-
sion requiring a three-fifths supermajority in each chamber to raise taxes. Such a
requirement is found in House Joint Resolution 248, a proposed amendment co-
sponsored by Joe Barton, the Texas Republican, and Billy Tauzin, the Louisiana
Democrat, as well as in Senate Joint Resolution 182, sponsored by Robert
Kasten, the Wisconsin Republican.
If an amendment only prohibits deficits, it restricts but one source of revenue,
namely borrowing, for new federal spending. Lawmakers still could replace govern-
ment borrowing with higher taxes. While the supermajority requirement does not pre-
clude tax increases, it does make hikes politically more difficult, and thus would en-
courage lawmakers to control wasteful spending as the means of complying with the
amendment. Congress still would be able to raise taxes, assuming 60 percent of mem-
5
bers concurred, but major tax increase proposals have always fallen short of this mark.
THE REAL GOAL: SHRINKING THE SIZE OF GOVERNMENT
In debating the balanced budget amendment, the real issue should be how to curb
the total size of government. Regardless of whether government spending is financed
by taxes or borrowing, resources are taken out of the productive sector of the economy
and transferred to the government. Federal borrowing certainly imposes economic
costs, forcing up interest rates and soaking up credit that could have been used to fi-
nance expansion of the nation's capital stock. But taxes, too, impose economic costs,
such as reducing incentives to work, save, and invest, thereby lowering economic
growth and discouraging job creation.
A properly crafted balanced budget amendment will shrink the burden of federal
spending by forcing programs to compete with each other for less-abundant tax dol-
lars. If members of Congress wanted to expand Medicaid eligibility, for instance, they
might have to reduce subsidies for the National Endowment for the Arts or for trans-
portation projects. If they wanted to increase funding for AIDS research, it might mean
canceling the Superconducting Supercollider. Most Americans believe Congress
should be making such difficult decisions, rather than raising taxes in order to dodge
tough spending choices.
THE KEYNESIAN RED HERRING
Opposition to a balanced budget amendment is driven primarily by interest groups
seeking to preserve their access to federal dollars. Realizing that most Americans are
hostile to such groups-at least groups of which they are not a member-opponents
often cloak their arguments in quasi-economic terms. According to some critics, for in-
stance, a balanced budget amendment will hurt the economy and needlessly extend
5 The 1990 budget deal, for instance, fell well short of 60 percent in both chambers, receiving 53 percent support in the
House and 54 percent in the Senate. Had a supermajority been in effect, the nation's economy would have been
spared the largest tax increase in American history.
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economic downturns by preventing the government from using tax and spending poli-
cies to even out the fluctuations of the economy. Thus, say critics, an amendment
would make it illegal for policy makers to use deficit spending to lift the economy out
of a recession. This view, associated with the school of economics founded by the late
John Maynard Keynes, heavily influenced public policy throughout much of the post-
World War II era.
Many economists, such as Nobel laureates Milton Friedman, Friedrich Hayek, and
James Buchanan, have pointed out the inherent flaws of a theory postulating that the
economy would benefit if only more resources were put under the control of politi-
cians and bureaucrats. These theoreticians' objections to Keynesian theory have been
borne out by the experience of the past thirty years. Simultaneous increases in inflation
and unemployment during the 1970s, deemed impossible under Keynesian theory,
helped undermine the theory. So did the U.S. economy's record performance after the
Reagan tax cuts took effect. Keynesians had predicted the tax cuts would be inflation-
ary under their model, but inflation slowed instead of accelerating. The final nail in the
Keynesian coffin is today's economic situation. If deficit spending stimulates the econ-
omy, as Keynesians argue, the record deficits in the last three years should have been
associated with rapid growth. Instead, the U.S. has experienced the slowest 6 period of
growth during any administration since Franklin Roosevelt's first term.
CONCLUSION
A balanced budget amendment ideally would include both a specific limit on federal
spending and a supermajority requirement to raise taxes. Thus crafted, the amendment
surely would rein in the growth of federal spending.
Still, for all its shortcomings, even the weak balanced budget amendments offered
by Senator Simon and Representative Stenholm would be better than the status quo.
With an amendment in place, Congress still would be forced to enact taxes to accom-
pany new programs. That would create political costs, as the Gramm-Rudman legisla-
tion did in such a situation, and thus make new programs less likely. If even a weak
balanced budget requirement were in effect, it is reasonable to assume that at least
some of any projected deficit gap would be made up for by controlling spending.
Today, no such pressure for spending controls exists.
Yet while a weak balanced budget amendment like the Simon or Stenholm versiosn
would be better than nothing, the impact will be much less than supporters expect. The
difference between a weak amendment and one with tax limitations would be pro-
found. With a weak amendment, the only thing standing between the economy and a
repeat of the 1990 budget deal is the political judgement of lawmakers. Under a tax
limitation/balanced budget amendment, however, taxes as well as borrowing would be
restricted, leaving lawmakers with no choice but to hold down spending. If history is
any guide, the best balanced budget amendment is the one that would leave lawmakers
with as little discretion as possible.
6 Regrettably the Bush Adminstration has resorted to Keynesian economics to justify its 1993 budget request. For
further information, see, "The New Voodoo," by Daniel J. Mitchell, Reason, May 1992.
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APPENDIX I
Highlights of
Proposed Balanced Budget Amendments
S.J.RES. 18
Proposed by Senator Paul Simon
(Weak Senate Version)
Section 1. Total outlays of the United States for any fiscal year shall not exceed totalreceipts to
the United States for that year, unless Congress approves a specific excess of outlays over re-
ceipts by three-fifths of the whole number of each House on a rollcall vote.
Section 2. Prior to each fiscal year, the President shall transmit to the Congress a proposed
budget for the United States Government for that year in which total outlays do not exceed
total receipts.
Section 3. Any bill to increase revenue shall become law only if approved by a majority of the
whole number of each House by a rollcall vote, unless such a bill is approved by unanimous
consent.
Section 4. The Congress may waive the provisions of this article for any fiscal year in which a
declaration of war is in effect.
The provisions of this article may be waived for any fiscal year in which the United States
is engaged in military conflict which causes imminent and serious military threat to national
security and is so declared by a joint resolution, adopted by a majority of the whole number
of each House of Congress, which becomes law.
Section 5. Total receipts shall include all receipts of the United States except those
derived from borrowing. Total outlays shall include all outlays of the United States except
those for repayment of debt principal.
Section 6. This article shall take effect beginning with the second fiscal year beginning after its
ratification.
S.J.RES. 182
Proposed by Senator Robert Kasten
H.J.RES. 248
Proposed by Representatives Joe Barton and Billy Tauzin
(Senate and House Tax Limitation Version)
Section 1. Prior to each fiscal year, Congress shall adopt a statement of receipts and outlays for
such fiscal year in which total outlays are not greater than total receipts. Congress may amend
such statement provided revised outlays are not greater than revised receipts. Congress may
provide in such statement for a specific excess of outlays over receipts by a vote directed
solely to that subject in which three-fifths of the whole number of each House agree to such
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excess. Congress and the President shall ensure that actual outlays do not exceed the outlays
set forth in such statement.
Section 2. Total receipts for any fiscal year set forth in the statement adopted pursuant to the first
section of this Article shall not increase by a rate greater than the rate of increase in national
income in the second prior fiscal year, unless a three-fifths majority of the whole number of
each House of Congress shall have passed a bill directly solely to approving specific addi-
tional receipts and such bill has become law.
Section 3. Prior to each fiscal year, the President shall transmit to Congress a proposed statement
of receipts and outlays for such fiscal year consistent with the provisions of this Article.
Section 4. Congress may waive the provisions of this Article for any fiscal year in which a decla-
ration of war is in effect.
Section 5. Total receipts shall include all receipts of the United States except those derived from
borrowing and total outlays shall include all outlays of the United States except those for the
repayment of debt principal.
Section 6. The amount of Federal public debt as of the first day of the second fiscal year begin-
ning after the ratification of this Article shall become a permanent limit on such debt and
there shall be no increase in such amount unless three-fifths of the whole number of each
House of Congress shall have passed a bill approving such increase and such bill has become
law.
Section 7. Congress shall enforce and implement this Article by appropriate legislation.
Section 8. This Article shall take effect for the fiscal year 1997 or for the second fiscal year begin-
ning after its ratification, whichever is later.
H.J. RES. 143
Proposed by Representative Jon Kyl
(Spending Cap, House Version)
Section 1. Except as provided in this article, expenditures of the United States Government for
any fiscal year shall not exceed its revenues for that fiscal year.
Section 2. Except as provided in this article, the expenditures of the United States Government for
a fiscal year may not exceed 19 per centum of the Nation's gross national product for the last
calendar year ending before the beginning of such fiscal year.
Section 3. The Congress may, by law, and subject to article 1, section 7 of the Constitution, pro-
vide for suspension of the effect of sections 1 and 2 of this article for any fiscal year for
which three-fifths of the total membership of each House shall provide, by a rollcall vote, for
a specific excess of outlays over estimated revenues.
Section 4. The Congress shall implement and enforce this article by appropriate legislation.
Section 5. This article shall apply to the first fiscal year beginning after its ratification and
subsequent fiscal years, but not to fiscal years beginning before October 1, 1996.
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H.J. RES. 29
Proposed by Representative Charles Stenholm
(Weak House Version)
Section 1. Prior to each fiscal year, the Congress and the President shall agree on an estimate of
total receipts for that fiscal year by enactment of a law devoted solely to that subject. Total
outlays for that year shall not exceed the level of estimated receipts set forth in such law, un-
less three-fifths of the whole number of each House of Congress shall provide, by a rollcall
vote, for a specific excess of outlays over estimated receipts.
Section 2. The limit on the debt of the United States held by the public shall not be increased
unless three-fifths of the whole number of each House shall provide by law for such an in-
crease by a rollcall vote.
Section 3. Prior to each fiscal year, the President shall transmit to the Congress a proposed
budget for the United States Government for that fiscal year in which total outlays do not
exceed total receipts.
Section 4. No bill to increase revenue shall become law unless approved by a majority of the
whole number of each House by a rollcall vote.
Section 5. The provisions of this article may be waived for any fiscal year in which a declara-
tion of war is in effect.
Section 6. Total receipts shall include all receipts of the United States Government except
those derived from borrowing. Total outlays shall include all outlays of the United States
Government except for those for repayment of debt principal.
Section 7. This article shall take effect beginning with fiscal year 1995 or with the second fis-
cal year beginning after its ratification, whichever is later.
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APPENDIX II
The Growing Deficit Burden
(Billions of Dollars)
Constant
Annual
Fiscal
Annual
1987
Deficit
National
Interest
Year
Deficit
Deficit
% of GDP
Debt
on Debt
1969
($3.2)
($10.5)
(0.4%)
$278.1
$12.7
1970
2.8
8.7
0.3
283.2
14.4
1971
23.0
65.9
2.2
303.0
14.8
1972
23.4
62.6
2.0
322.4
15.5
1973
14.9
37.6
1.2
340.9
17.3
1974
6.1
14.2
0.4
343.7
21.4
1975
53.2
111.9
3.5
394.7
23.2
1976
73.7
144.6
4.4
477.4
26.7
1977
53.7
97.2
2.8
549.1
29.9
1978
59.2
99.8
2.7
607.1
35.5
1979
40.2
62.4
1.7
639.8
42.6
1980
73.8
104.0
2.8
709.3
52.5
1981
79.0
101.0
2.7
784.8
68.8
1982
128.0
152.9
4.1
919.2
85.0
1983
207.8
236.8
6.3
1,131.0
89.8
1984
185.4
203.2
5.0
1,300.0
111.1
1985
212.3
224.6
5.3
1,499.4
129.5
1986
221.2
227.3
5.2
1,736.2
136.0
1987
149.8
149.8
3.4
1,888.1
138.7
1988
155.2
149.8
3.2
2,050.3
151.8
1989
153.5
141.9
3.0
2,190.3
169.3
1990
220.5
195.4
4.0
2,410.4
184.2
1991
268.7
228.1
4.8
2,687.2
194.5
1992*
399.7
329.1
6.8
3,077.3
198.8
Note: A number In (brackets) Indicates a surplus. *Estimate
Source: Budget of the United States Government, FY1993, Historical Tables, Office of
Management and Budget, January 1992.
14
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The Relentless Growth of Federal Spending
(Billions of Dollars)
Contant
Fiscal
Percent
1987
Percent
Spending as
Year
Spending
Growth
Spending
Growth
Percent of GDP
1969
$183.6
-
$595.1
—
$19.8
1970
195.6
6.5%
597.8
0.5%
19.9
1971
210.2
7.5
601.0
0.5
20.0
1972
230.7
9.8
618.3
2.9
20.1
1973
245.7
6.5
620.3
0.3
19.2
1974
269.4
9.6
625.4
0.9
19.2
1975
332.3
23.3
698.5
11.7
22.0
1976
371.8
11.9
729.3
4.4
22.1
1977
409.2
10.1
740.9
1.6
21.3
1978
458.7
12.1
773.9
4.5
21.3
1979
503.5
9.8
781.7
1.0
20.7
1980
590.9
17.4
832.1
6.4
22.3
1981
678.2
14.8
867.7
4.3
22.9
1982
745.8
10.0
891.1
2.7
23.9
1983
808.4
8.4
921.1
3.4
24.4
1984
851.8
5.4
933.5
1.3
23.0
1985
946.4
11.1
1,001.3
7.3
23.8
1986
990.3
4.6
1,017.3
1.6
23.5
1987
1,003.9
1.4
1,003.9
-1.3
22.5
1988
1,064.1
6.0
1,027.1
2.3
22.1
1989
1,144.2
7.5
1,057.9
3.0
22.1
1990
1,251.8
9.4
1,109.4
4.9
22.9
1991
1,323.0
5.7
1,122.9
1.2
23.5
1992*
1,475.4
11.5
1,214.7
8.2
25.2
*Estimate
Source: Budget of the United States Government, FY1993, Historical Tables, Office of
Management and Budget, January 1992.
275 (oge Foundation law available etectronical
levelsed The Herlidge", oundution" Reports at (RPTS) foundacion OMN: CURRYT
and with groupilles withs NEXIS inthe GOVT and OMNI 00 library.
15
MEMORANDUM FOR DAVID DEMAREST
FROM: GARY GERSHOWITZ
SUBJECT: COMMUNICATIONS PLAN
All that I would add to the speech outline is a: "MY GOAL"
objective at the conclusion of a speech. Though we listen to the
President speak of "specific actions", the rhetoric in his
summation should strongly define/emphasize a goal whose purpose
is to convince the American public that he is the only candidate
able to bring his "specific actions" to fruition.
If people are confused and uneasy about change, then the
overriding strategy should be to ease their apprehension in terms
of a goal (s) the President has set for achieving such change.
The key, I think, is to send the message that the President's
goal-oriented objective is not only attainable but is the way to
get the country back on the "right track".
1809N.
1990
WH
Political Quotations
A Collection of Notable Sayings on Politics from Antiquity through 1989
Daniel B. Baker, Editor
Gale Research Inc.
DETROIT
NEW YORK
LONDON
11
TAXATION AND BUDGETS
Political Quotations
Political Quotations
TAXATION AND BUDGETS
3567. No socialist system can be established without a political police. They would have to
3583. Our Constitution is in actual operation; everything appears to promise that it will last;
fall back on some form of Gestapo. -Sir Winston S. Churchill, BBC radio broadcast, Jun 4, 1945
but nothing in this world is certain but death and taxes. -Benjamin Franklin, letter to David
Hartley, Dec 4, 1789
3568. Every reasonable human being should be a moderate Socialist. -Thomas Mann, The
New York Times, Jun 18, 1950
3584. Mere parsimony is not economy. Expense, and great expense, may be an essential part
of true economy. -Edmund Burke, Letter to a Noble Lord, 1796
3569. The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue
of socialism is the equal sharing of miseries. -Sir Winston S. Churchill, saying
3585. Sound principles will not justify our taxing the industry of our fellow citizens to
3570. I believe that for the past twenty years there has been a creeping socialism spreading in
accumulate treasure for wars to happen we know not when, and which might not perhaps happen
the United States. -Dwight D. Eisenhower, speech to Republican leaders, Custer State Park,
but from the temptations offered by that treasure. -Thomas Jefferson, first annual message to
Congress, Dec 8, 1801
South Dakota, Jun 11, 1953
3571. If the Labour Party is not going to be a Socialist Party, I don't want to lead it. When
3586. Not one cent should be raised unless it is in accord with the law. [II ne doit pas être levé
you join a team in the expectation that you are going to play rugger, you can't be expected to
un centime, si ce n'est en vertu d'une loi.] -Napoleon I, decision, Nov 15, 1804
be enthusiastic if you are asked to play tiddly-winks. -Aneurin Bevan, speech in Manchester,
3587. And to preserve their independence, we must not let our rulers load us with perpetual
England, Jan 26, 1956
debt. We must make our election between economy and liberty, or profusion and servitude.
3572. Total abstinence and a good filing-system are not now the right sign-posts to the socialist
-Thomas Jefferson, letter to Samuel Kercheval, Jul 12, 1816
Utopia; or at least, if they are, some of us will fall by the wayside. -Anthony Crosland, The
3588. I, however, place economy among the first and most important of republican virtues, and
Future of Socialism, 1956
public debt as the greatest of the dangers to be feared. -Thomas Jefferson, letter to William
3573. The two most important emotions of the Labour Party are a doctrinaire faith in
Plumer, Jul 21, 1816
nationalization, without knowing what it means, and a doctrinaire faith in pacifism, without
3589. That the power to tax involves the power to destroy is not to be denied. -John
facing its consequences. -Richard Crossman, Diary, Oct 4, 1957
Marshall, McCullough V. Maryland, 1819
3574. The definition of the Left is a group of people who will never be happy unless they can
convince themselves that they are about to be betrayed by their leaders. -Richard Crossman,
3590. The greatest, the most important power entrusted to the government is the right to tax
the citizens; it is from this right that all the others flow. Today, therefore, political science consists
Diary, Jul 3, 1959
essentially in being able to draw up a good budget. Now, the ability to do this is an administrative
3575. Between the barbarity of capitalism, which censures itself much of the time, and the
ability, from which it follows that administrative ability is the principal ability needed in politics.
barbarity of socialism, which does not, I guess I might choose capitalism. -Bernard-Henri Lévy,
-Claude Henri, Comte de Saint-Simon, Politics, 1819
Time, Mar 13, 1978
3591. I am one of those who do not believe that a national debt is a national blessing it
is
calculated to raise around the administraiton a moneyed aristocracy dangerous to the liberties
TAXATION AND BUDGETS
of the country. -Andrew Jackson, letter to L.H. Colman, Apr 26, 1824
3576. When there is an income tax, the just man will pay more and the unjust less on the same
amount of income. -Plato, The Republic, ca. 390 B.C.
3592. That most delicious of all privileges-spending other people's money. -John Randolph
of Roanoke, quoted by W. Cabell Bruce, John Randolph of Roanoke, 1773-1833, 1922
3577. The art of taxation consists in so plucking the goose as to obtain the largest possible
amount of feathers with the smallest possible amount of hissing. -Jean Baptiste Colbert,
3593. The wisdom of man never yet contrived a system of taxation that would operate with
perfect equality. -Andrew Jackson, "Proclamation to the People of South Carolina", Dec 10,
attributed, ca. 1665
1832
3578. The British Parliament has no right to tax the Americans. Taxation and representation
are inseparably united. God hath joined them; no British Parliament can put them asunder. To
3594. Countries, therefore, when lawmaking falls exclusively to the lot of the poor cannot hope
endeavour to do so is to stab our very vitals. -Charles Pratt, Earl Camden, speech in the House
for much economy in public expenditure. [Les pays ou les pauvres seraient exclusivement chargés
of Lords, 1765
de faire la loi ne pourraient donc espérer une grande économie dans les dépenses publiques.]
3579. It is inseparably essential to the freedom of a people that no taxes be imposed on them
-Alexis, Comte de Tocqueville, Democracy in America, 1835
but with their own consent, given personally or by their representatives. -John Dickinson,
3595. In other words, a democratic government is the only one in which those who vote for
Resolutions of the Stamp Act Congress, Oct 19, 1765
a tax can escape the obligation to pay it: [En d'autre termes, le gouvernement de la démocratie
3580. To please universally was the object of his life; but to tax and to please, no more than
est le seul ou celui qui vote l'impôt puisse échapper à l'obligation de le Comte
to love and to be wise, is not given to men. -Edmund Burke, speech in the House of Commons,
de Tocqueville, Democracy in America, 1835
Apr 19, 1774
3596. As an individual who undertakes to live by borrowing, soon finds his original means
3581. A national debt, if it is not excessive, will be to us a national blessing. -Alexander
devoured by interest, and next no one left to borrow from-so must it be with a government.
Hamilton, letter to Robert Morris, Apr 30, 1781
-Abraham Lincoln, campaign circular, Mar 4, 1843
3582. Another means of silently lessening the inequality of property is to exempt all from
3597. Of all debts men are least willing to pay the taxes. What a satire is this on government!
taxation below a certain point, and to tax the higher portions of property in geometric progression
Everywhere they think they get their money's worth, except for these. -Ralph Waldo Emerson.
as they rise. -Thomas Jefferson, letter to James Madison, Oct 28, 1785
"Politics", Essays: Second Series, 1844
219
AXATION AND BUDGETS
Political Quotations
Political Quotations
TAXATION AND BUDGETS
598. To tax the community for the advantage of a class is not protection: it is plunder.
3614. Our national debt after all is an internal debt owed not only by the Nation but to the
-Benjamin Disraeli, speech in the House of Commons, May 14, 1850
Nation. If our children have to pay interest on it they will pay that interest to themselves. A
599. People are glad to be defended, but they are not glad about paying for it. [Man lässt sich
reasonable internal debt will not impoverish our children or put the Nation into bankruptcy.
ern schützen, aber man zahlt nicht gern.] -Prince Otto von Bismarck, speech in the Prussian
Franklin D. Roosevelt, speech to the American Retail Federation, May 22, 1939
hamber of Deputies, Jun 1, 1865
3615. Noah must have taken into the Ark two taxes, one male and one female, and did they
600. The life of a republic lies certainly in the energy, virtue, and intelligence of its citizens;
multiply bountifully! Next to guinea pigs, taxes must have been the most prolific animals. -Will
ut it is equally true that a good revenue system is the life of an organized government. -Andrew
Rogers, The Autobiography of Will Rogers, 1949
ohnson, first annual message to Congress, Dec 4, 1865
3616. When everybody has got money they cut taxes, and when they're broke they raise 'em.
601. No favored class should demand freedom from assessment, and the taxes should be so
That's statesmanship of the highest order. -Will Rogers, The Autobiography of Will Rogers,
istributed as to not fall unduly on the poor, but rather on the accumulated wealth of the country.
1949
-Andrew Johnson, first annual message to Congress, Dec 4, 1865
3617. It's a terribly hard job to spend a billion dollars and get your money's worth. -George
602. The thing generally raised on city land is taxes. -Charles Dudley Warner, "Sixteenth
M. Humphrey, Look, Feb 23, 1954
Veek", My Summer in a Garden, 1870
3618. The purpose is clear. It is safety with solvency. The country is entitled to both. -Dwight
603. When more than the people's sustenance is exacted through the form of taxation than
D. Eisenhower, on unification of the three military services, Apr 17, 1958
necessary to meet the just obligations of Government and expenses of its economical
dministration, such exaction becomes ruthless extortion and a violation of the fundamental
3619. There is one difference between a tax collector and a taxidermist-the taxidermist leaves
rinciples of a free Government. -Grover Cleveland, second annual message to Congress, Dec
the hide. -Mortimer Caplin, Time, Feb 1, 1963
1886
3620. The Federal Government is the people and the budget is a reflection of their need. -John
604. Taxes are what we pay for civilized society. -Oliver Wendell Holmes Jr., Compañía de
F. Kennedy, speech in Washington, D.C., Apr 19,, 1963
abacos V. Collector, 1904
3621. Government expands to absorb revenue and then some. -Tom Wicker, quoted by
605. Houseless, adj. Having paid all taxes on household goods. -Ambrose Bierce, The Devil's
Harold Faber, The New York Times Magazine, Mar 17, 1968
Dictionary, 1906
3622. Man is not like other animals in the ways that are really significant: animals have
606. The power to tax is the power to destroy. A government which lays taxes on the people
instincts, we have taxes. -Erving Goffman, interview, The New York Times, Feb 12, 1969
ot required by urgent public necessity and sound public policy is not a protector of liberty, but
n instrument of tyranny. -Calvin Coolidge, speech in Washington, D.C., Jun 30, 1924
3623. There is no doubt that many expensive national projects may add to our prestige or serve
science. But none of them must take precedence over human needs. As long as Congress does
607. The Income Tax has made more Liars out of the American people than golf has. -Will
not revise its priorities, our crisis is not just material, it is a crisis of the spirit. -Nelson A.
logers, "Helping the Girls with Their Income Taxes", The Illiterate Digest, 1924
Rockefeller, letter to John V. Lindsay, The New York Times, Apr 25, 1971
608. I favor the policy of economy, not because I wish to save money, but because I wish to
3624. Virtually everything is under federal control nowadays except the federal budget.
ave people. The men and women of this country who toil are the ones who bear the cost of the
-Herman E. Talmadge, American Legion Magazine, Aug, 1975
Government. Every dollar that we carelessly waste means that their life will be so much the more
heager. Every dollar that we prudently saves means that their life will be so much the more
3625. Budgeting is a black art practiced by bureaucratic magicians. -David Muchow, Chicago
bundant. Economy is idealism in its most practical form. -Calvin Coolidge, inaugural address,
Sun-Times, Nov 19, 1976
Mar 4, 1925
3626. Tax reform means "Don't tax you, don't tax me, tax that fellow behind the tree."
609. The collection of any taxes which are not absolutely required, which do not contribute
-Russell B. Long, The New York Times, Dec 31, 1976
the public welfare, is only a species of legalized larcency. -Calvin Coolidge, inaugural address,
Mar 4, 1925
3627. There's only one place where inflation is made: that's in Washington in response to
pressures from the people at large. The voting public ask their Congressmen to enact goodies
610. The power to tax is not the power to destroy while this Court sits. -Oliver Wendell
in the form of spending, but they are unhappy about having taxes raised to pay for those goodies.
Holmes Jr., dissenting opinion, Panhandle Oil Company V. Mississippi ex rel. Knox, Attorney
-Milton Friedman, U.S. News & World Report, Mar 7, 1977
General, 1928
3628. Any jackass can draw up a balanced budget on paper. -Lane Kirkland, U.S. News &
611. Lord, the money we do spend on Government and it's not one bit better than the
World Report, May 19, 1980
overnment we got for one-third the money twenty years ago. -Will Rogers, quoted by Paula
McSpadden Love, The Will Rogers Book, 1972
3629. None of us really understands what's going on with all these numbers. -David
Stockman, "The Education of David Stockman," by William Greider, The Atlantic Monthly,
612. Too often in recent history liberal governments have been wrecked on rocks of loose fiscal
Dec, 1981
olicy. -Franklin D. Roosevelt, message to Congress, Mar 10, 1933
613. Taxes, after all, are the dues that we pay for the privileges of membership in an organized
3630. Someone must stand up to those who say, "Here's the key, there's the Treasury, just take
ociety. -Franklin D. Roosevelt, speech in Worcester, Massachusetts, Oct 21, 1936
as many of those hard-earned tax dollars as you want." -Ronald Reagan, The New York Times,
Mar 18, 1985
220
221
TREASON
Political Quotations
3631. Most (tax revisions) didn't improve the system, they made it more-like Washington itself;
complicated, unfair, cluttered with gobbledygook and loopholes designed for those with the
power and influence to hire high-priced legal and tax advisers. -Ronald Reagan, televised
speech, May 28, 1985
3632. The current tax code is a daily mugging. -Ronald Reagan, speech in Independence,
Missouri, Sep 2, 1985
3633. Before we give you billions more, we want to know what you've done with the trillion
you've got. -Les Aspin, report on letter to the Secretary of Defense, The New York Times, Feb
5, 1985
3634. (A tax loophole is) something that benefits the other guy. If it benefits you, it is tax
reform. -Russell B. Long, recalled on his retirement, Time, Nov 10, 1986
3635. Read my lips: no new taxes. -George Bush, acceptance speech as Republican nominee
for preseident, Aug 18, 1988
TREASON
3636. Treason doth never prosper: what's the reason?/ For if it prosper, none dare call it
treason. -Sir John Harington, "Of Treason", Epigrams
3637. Caesar had his Brutus, Charles the First, his Cromwell, and George the Third
("Treason!" cried the Speaker) may profit by their example. If this be treason, make the most
of it. -Patrick Henry, speech to the Virginia House of Representatives, 1765
3638. Traters, I will here remark, are a onfortnit class of peple. If they wasn't, they wouldn't
be traters. They conspire to bust up a country-they fail, and they're traters. They bust her, and
they become statesmen and heroes. -Artemus Ward, "The Tower of London", Artemus Ward
in London, 1872
3639. The fear of doing right is the grand treason in times of danger. -Henry Ward Beecher,
Proverbs from Plymouth Pulpit, 1887
3640. They talk of a man betraying his country, his friends, his sweetheart. There must be a
moral bond first. All a man can betray is his conscience. -Joseph Conrad, Under Western Eyes,
1911
3641. If I had to choose between betraying my country and betraying my friend, I hope I should
have the guts to betray my country. --E.M. Forster, "What I Believe", Two Cheers for
Democracy, 1951
3642. We are the first victims of America fascism. -Ethel and Julius Rosenberg, letter released
by their attorney the day of execution for espionage, Jun 19, 1953
3643. To betray you must first belong. -Kim (Harold) Philby, The New York Times, Dec 19,
1967
WAR AND PEACE
3644. Victory shifts from man to man. -Homer, Iliad, ca. 700 B.C.
3645. Better beans and bacon in peace than cakes and ale in fear. -Aesop, "The Town Mouse
and the Country Mouse", Fables, ca. 550 B.C.
3646. Stretch a bow to the very full,/ And you will wish you had stopped in time. -Lao-Tse,
The Way of the Tao, 6th cent. B.C.
3647. To lead an uninstructed people to war is to throw them away. -Confucius, The Analects,
ca. 480 B.C.
3648. Dead men have no victory. -Euripides, The Phoenician Women, ca. 411-409 B.C.
222
B. A Services Const-
JC. Car trattre
BALANCED BUDGET
D.
Josh Bolton 2230 (Calio's office)
E. In your home
(Don't call Calio's office or Scully's office)
--? Other Presidential quotes
JF. GB L3dry
--? quotes on institutional change
--? annual GNP
G. H. Benefits (chage
Change
--? old GB quotes on need for balanced budget
--? any states have balanced budget amendments I
States
--? magazine articles on balanced budget (analysis, not minor
news clips)
--grass-roots call to action -- make folks want to call their
Congressmen
balanced budget constitutional amendment
victory in the house June 10th and beyond
very straightforward argument
--
more
than
an
issue
--
balancing budget is a value to opeople -- 80% people for it --
should have been doing it before
for superma jority
-visibly out in front in drive --
-agent of institutional change
-revolutionary change in way Washington conducts its business
rally public opinion, get people to communicate to Democratic
Congressmen
been for it for a long time
will bring much toughert scrutiny of government intitaitives
reality of reducing the deficit -- how reduce $400 billion
deficit over two to four years -- will focus minds --
-make it real -- isn't Monopoogy money -- it's your money
("break partisan gridlock and address problems of reforming
public sector institutions that aren't working well -- education,
health care, welfare, legal system" -- make balanced budget part
of that) -- say we need all of these things, but have to start
with budget
-I am instrument of change -- will break the gridlock, starting
with this
disciplining government (maybe start making it situation at
your home -- what is Government income yearly)
terms: credit cards, mortgage, loan, overdrawn, blank check,
you work hard to keep your house in order -- it's past time to
demand that AMerica's house be kept in order
look at how working in states
discipline executive branch and legislative branch
American people should demand balanced budget amendmen=t
denned in you home due FL free have
JOSH:
suggestions will come from House and Senate people -- themes
and phrases (Jack and Sean)
important: has been on front in this -- first Feb. 9, 1989,
asked Congress first thing asked Congress to pass
David Taylor (OMB) 4790
@
don get into legislative issues -- (will be over 3/5,
supermajority)
-background: House likely to vote June 10 on variety of bb
proposals, Stenholm likely to win -- includes supermajority to
raise debt limit but not supermajority for taxes; will be a
Barton proposal, supermajority for taxes as well as debt limit -
- Republicans support that; GB would like Barton but support
Stenholm: Dem leadership a convulated plan producted recently,
mandate reach bb if no agreement by 60% cuts, 40% increase in
taxews theme to be emphasized needs to be responsibly done, as
he has proposed, we can arrive at a balanced budget without
raising taxes -- should say something toc ounter charge he hasn't
presented bb, answer is budgets he has submitted would have
reached balance over 5 years if Congres has been willing to
support his proposals --
--GB glad so many Democrats coming on board with his notion,
vehicles that will pass in both houses will have Democratic names
on them
this doesn't go to GB for signature -- goes out to the states,
are
then 2/3 of states have to approve in state legislatures --
&E
--severity of amending the Constituion -- only done 15 times in
the 201 years since the Bill of Rights --
DARMAN TESTIMONY (May 6 -- sent by David Taylor):
--GB proposed balanced budget amendment in all thre ebudgets
submitted;
even before submitting a full bduget, shortly after being
inaugurated, first specific legislative proposal -- call for
balanced budget (2/9/89)
--most fundamental change needed
for most of our history until very recent decades, unwritten
BE
but effectyive rule against deficit financing, except in time of
war
-simply -- spending that exceeds revenue -- you know what
happens -- it catches up to you
-change in constitution
-short-term political conveneince at expense of long-term
responsibility
we are borrowing from the future to pay for consumpions of
present
our children's children need for protection a constitutional
amendment
-public fed up -- with
partisan posturing must yield to responsibility to govern
amendment: simply -- total outalays shall not exceed total
receipts
FIND quotes, definitions, etc. on what Constitution stands for
the main problem with the economy is the budget defiicit (blue
book, p. 42)
34/50
3
--a solemn bond between generations
then 38 state legislatures
interest exceeds social spending
est. $400 billion this year
means you owe $4 on every $10 you make -- family with $50,000
income $20,000 in debt -- what kind of future, let alone present
Thomas JEfferson:
"I
place
public debt as the greatest of
C
the dangers to be feared. "
A respond
05:11-M
A
B
DI
I
G
F
E
H
Part One- 25
2. DIRECTOR'S INTRODUCTION (AND OVERVIEW TABLES)
Table 2-3. OUTLAYS, REVENUES, AND DEFICITS (Excluding
Comprehensive Health Reform)
(In billions of dollars)
1991
1992
1993
1994
1995
1996
1997
Categories
Actual
Budget
Budget
Budget
Budget
Budget
Budget
Outlays
Discretionary:
216.2
224.7
229.3
232.2
236.9
236.8
195.4
Domestic
Defense:
309.0
300.4
278.7
270.2
269.6
271.8
274.4
Department of Defense
10.7
12.5
12.9
13.4
13.9
14.7
15.3
Other Defense
319.7
312.9
291.6
283.7
283.5
286.5
289.8
Total Defense
21.4
21.3
21.5
21.2
19.7
20.1
20.6
International
534.8
549.2
537.0
534.3
537.0
544.8
547.8
Total Discretionary
Mandatory:
66.3
80.1
75.7
-25.0
-27.2
-21.7
-32.2
Deposit insurance
78.3
81.1
85.6
88.7
91.2
96.4
Federal retirement
75.8
62.6
74.8
77.4
82.5
87.5
89.4
95.5
Means-tested entitlements
52.5
72.5
84.5
98.2
113.7
131.1
150.7
Medicaid
102.0
116.0
126.5
140.1
156.0
176.2
197.7
Medicare
284.3
299.7
315.1
330.8
347.4
364.8
Social Security
266.8
25.3
32.0
25.6
25.0
24.7
24.3
24.6
Unemployment insurance
-57.7
-10.9
-4.6
-12.0
-17.8
-28.2
-24.9
Other
593.7
727.2
765.9
709.5
756.3
809.6
872.6
Subtotal Mandatory
194.5
198.8
213.8
231.0
242.2
253.0
263.2
Net Interest*
1,323.0
1,475.1
1,516.7
1,474.8
1,535.5
1,607.5
1,683.6
Total Outlays
1,054.3
1,075.7
1,164.8
1,263.4
1,343.5
1,427.5
1,501.8
Revenues
-399.4
-351.9
-211.4
-192.1
-180.0
-181.8
-268.7
Deficit
Deficit/Surplus (excluding inter-
-74.2
-200.6
-138.1
+19.6
+50.1
+73.0
+81.4
est)
Deficit/Surplus (excluding de-
-7.9
-120.5
-62.4
-5.5
+22.9
+51.3
+49.3
posit insurance & interest)
Memorandum
Deficit on an accrual basis
-268.7
-365.2
-332.7
-242.8
-217.8
-193.7
-203.3
Social Security (included above):
53.5
50.2
63.4
75.9
86.9
101.1
115.0
Operating Surplus
20.2
23.9
27.0
31.1
35.7
41.1
47.4
Interest
73.7
74.1
90.4
107.0
122.6
142.2
162.4
Total
. Slight variation from estimates printed in appendices due to a late correction in the rate of redemption of State and local
governments' holdings of Treasury Securities.
of Total Federal government receipts in final year 1991
were $1.054 5817.56 trillion.
Ktl
G
Jul SENIOR ECONOMIST, CEA
X4666
Part Five-22
THE BUDGET FOR FISCAL YEAR 1993-SUPPLEMENT
Table 2.1-RECEIPTS BY SOURCE: 1934-1997-Continued
(in millions of dollars)
Individual
Corporation
Social Insurance Taxes and
Total Receipts
Fiscal Year
Income
income
Contributions
Excise
Taxes
Taxes
3
Taxes
1
Other 2
Total
(On-Budget)
(Off-Budget)
Total
(On-Budget)
(Off-Budget)
1985
334,531
61,331
265,163
(78,992)
(186,171)
35,992
37,040
734,057
(547,886)
1986
348,959
63,143
(186,171)
283,901
(83,673)
(200,228)
32,919
40,168
769,091
(568,862)
1987
392,557
83,926
(200,228)
303,318
(89,916)
(213,402)
32,457
41,884
854,143
(640,741)
1988
401,181
94,508
(213,402)
334,335
(92,845)
(241,491)
35,227
43,702
908,954
(667,463)
1989
445,690
103,291
(241,491)
359,416
(95,751)
(263,666)
34,386
47,908
990,691
(727,026)
(263,666)
1990
466,884
93,507
380,047
(98,392)
(281,656)
35,345
55,524
1,031,308
(749,652)
1991
467,827
98,066
(281,656)
396,016
(102,131)
(293,885)
42,402
49,933
1,054,264
(760,380)
1992 estimate
478,749
89,031
410,863
(293,885)
(109,941)
(300,922)
46,098
50,966
1,075,706
(774,784)
1993 estimate
515,195
103,816
446,691
(300,922)
(120,915)
(325,776)
48,091
51,567
1,165,360
(839,584)
1994 estimate
562,483
118,203
479,901
(325,776)
(131,127)
(348,774)
49,740
52,804
1,263,131
(914,357)
(348,774)
1995 estimate
602,790
125,294
508,691
(138,820)
(369,871)
51,115
54,519
1,342,409
(972,538)
1996 estimate
643,835
136,880
540,606
(369,871)
(146,338)
(394,268)
48,923
56,551
1,426,795
(1,032,527)
1997 estimate
677,467
141,370
(394,268)
569,931
(151,637)
(418,294)
49,906
57,924
1,496,599
(1,078,305)
(418,294)
1 See Table 2.4 for additional details. See Table 25 for additional details. Beginning in 1987, includes trust fund receipts for the hazardous substance superfund. The trust fund amounts are as
follows (in millions of dollars): 1987: 196; 1988: 313; 1989: 292; 1990: 461; 1991: 591; 1992: 365; 1993: 437; 1994: 514; 1995: 616; 1996: 265; 1997 0.
HISTORICAL TABLES
Part Five-35
Table 2.5-COMPOSITION OF "OTHER RECEIPTS": 1940-1997-Continued
(in millions of dollars)
Miscellaneous Receipts
Memorandum: Trust Fund Amounts In-
cluded in "Other Receipts"
Total Other Re-
Estate and Gift
Customs Duties
Fiscal Year
ceipts
Taxes
and Fees
Federal Reserve
All Other
Customs Duties
Deposits
1
All Other
and Fees
1990
55,524
11,500
16,707
24.319
2,997
210
233
49,933
11,138
15,949
19,158
3,688
432
241
1991
1992 estimate
50,966
12,063
17,260
18,507
3,136
505
233
1993 estimate
51,567
12,872
17,961
17,420
3,314
578
260
1994 estimate
52,804
12,609
18,252
18,552
3,391
568
256
1995 estimate
54,519
13,601
18,445
19,092
3,381
598
272
1996 estimate
56,551
14,622
18,574
19,936
3,419
638
276
1997 estimate
57,924
15,876
18,642
19,933
3,473
638
293
'Deposits of earnings by the Federal Reserve System.
)
3
?
7
3
4
5
0
9
5
15
%
n
55
22
THE PRESIDENT'S COMMITMENT
President Bush has proposed a balanced budget constitutional amendment in all three of the Budgets he has submitted
to the Congress - but without a favorable Congressional response to date.
Even before submitting a full budget - shortly after being inaugurated - the President proposed that the Congress
adopt a balanced budget constitutional amendment. This was his first specific legislative proposal (in Building a Better
America). In doing so, he noted the following:
"Balanced Budget Constitutional Amendment. The most fundamental change needed is a constitutional
amendment to require a balanced budget, including safeguards against a resort to higher taxes as the means
of complying with the constitutional mandate. For most of our history until very recent decades there was
an unwritten, but effective, rule against deficit financing, except in time of war. That rule, unfortunately,
appears to have been abandoned in practice, if not in oratory. The problem of excessive spending - and
spending that exceeds revenue - is a well-known and chronic affliction of democracies. The remedy in the
case of the United States is clear: a change in the constitution. A balanced budget amendment is both
necessary and appropriate to protect the interests of a group of citizens not now able to represent themselves:
the citizens of future generations. Such an amendment has already passed the Senate on one occasion, and
public support for it is shown in a variety of ways, ranging from opinion polls to enactment by more than 30
state legislatures of calls for a constitutional convention for this purpose. The time has come to move a
balanced budget constitutional amendment forward."
Building a Better America
February 9, 1989
There have been dozens of balanced budget amendments introduced. (See Appendix II for a summary of the major
proposals.) Regrettably, however, none has yet emerged from the Congress:
When Senate Joint Resolution 12 was introduced by Senator Thurmond and was before the Judiciary Committee,
the President urged its adoption. Although reported by the Committee with an 11-3 majority, the issue was not
brought before the full Senate for a vote. Similarly, when H.J. Res. 268 was before the House, the President
wrote the Speaker (July 16, 1990) and urged its prompt adoption. A strong majority voted for the amendment
(279 members of the House - 169 Republicans and 110 Democrats). But unfortunately, the amendment fell
short of the required supermajority by 7 votes.
Page 2
INTRODUCTION
Mr. Chairman and distinguished members of the Committee, it is a pleasure to appear before the House Budget
Committee once again. I thank you for the opportunity to discuss the balanced budget constitutional amendment.
This is an amendment the President has long sought. I am pleased to note that there is now what appears to be a
serious prospect that the Congress may move this amendment forward for ratification by the States.
With that prospect in view, this testimony addresses the following:
The President's commitment to a balanced budget constitutional amendment;
The unfortunate record that argues for the necessity of a balanced budget constitutional amendment;
The programmatic means to achieve a balanced budget - with special emphasis on:
- The President's Agenda for Growth; and
- The President's proposed cap on the growth of uncontrolled "mandatory" spending.
Page 1
THE BUDGET
Balanced-Budget Amendment
Suddenly Comes to Life
Pressure to outlaw deficits under the Constitution
sends lawmakers scrambling to sort out details
f Dick Gephardt, Bob
pose an amendment but are
I
Dole and cloakroom wis-
resigned to what they see as
dom are right, a belea-
an inexorable force. If the
ARTICLE V.
guered Congress will vote this
country is going to take this
year in favor of amending the
Congress, whenever two-thirds of both houses to
path, they want to make sure
Constitution to require a bal-
The deem it necessary, shall propose amendments legisla-
it is well-lighted and that no
one stumbles on hidden rocks.
anced federal budget.
It will then be up to the
shall Constitution, or, on the application of the call a
The sudden groundswell of
states to decide if the amend-
this of two-thirds of the several States, shall in
support has them scrambling
ment should become part of
the supreme law of the land.
convention tures for proposing amendments, which,
to refine the language and to
shall be valid to all intents and purposes, legislatures as
think through a host of unan-
But again, the morning line
swered questions.
either of case, this Constitution, when ratified by the cor ons
"The issue is how to write
says that the requir
legislatures will go along, and
in relatively short order.
of part three-fourths of the several States, one or the or by other
[an amendment] that is effec-
of
tive," says supporter Pete V.
Has frustration over the
three-fourths
thereof
he
Domenici of New Mexico,
in
steady rise in the federal defi-
by the Congre
ranking Republican on the
ratification may be prop
cit finally overcome institu-
pr
Senate Budget Committee.
endment
tional objections to placing
Congress voted once be-
such a severe restraint on
fore, in the guise of the 1985
Gramm-Rudman anti-deficit
Congress' power of the purse?
Are enough liberal Demo-
law, to eliminate or at least
crats ready to take the pledge
restrain the deficit. For a va-
to provide the needed two-
riety of reasons - many of
thirds majorities of the House
them baldly political -
Gramm-Rudman did not
and Senate to adopt a con-
stitutional amendment?
work. As White House budget
director Richard G. Darman
It appears so.
House Majority Leader Gephardt,
Con Res 287) that exhorts the Senate
told the House Budget Committee on
D-Mo., told an audience at Harvard
to adopt a balanced-budget amend-
May 6: "In its first year, the deficit
University's Kennedy School of Gov-
ment by June 5. (Vote 107, p. 1300)
was $221.2 billion; and in the last year
ernment on May 4 that he expected
Though Gephardt has long op-
[that Gramm-Rudman would have al-
debate on a balanced-budget amend-
posed using the Constitution to limit
lowed a shortfall], the deficit was
ment to begin in both chambers
deficit spending, he has not decried
around June 1; he predicted that the
the current rush to act. Participants in
No one wants the same thing to
measure would be adopted by both.
a recent meeting of House Democratic
happen again. Nor do members want
On Capitol Hill, populist Bob
whips said he lamented the failure to
to so hamstring Congress that it can-
Wise, D-W.Va., is one of several mem-
bring the deficit under "Now
not effectively meet the country's
bers who have approached Charles W.
we
have
to
do
d
needs or to tie its hands on fiscal pol-
Stenholm, D-Texas, a leading propo-
his colleagues.
icy in times of economic strife.
nent, in recent days to say they have
Senate Minority Leader Dole - a
gotten religion. "I think I'm at the
longtime amendment booster - agrees
Sudden Rush of Support
altar," Wise told Stenholm at a House
that Congress will send an amendment
Proposed balanced-budget amend-
Budget Committee hearing April 29.
to the states this year. The Kansas Re-
ments have been kicked around for
"Amen," Stenholm replied.
publican says he would "like to have a
years in conservative circles, but they
And on May 6, in a test vote of
few word changes," however, starting
have come to the floor of either chamber
sorts, the House voted 322-66 in favor
with the name of the prime Senate
for a vote only four times. The high-
of language in the Senate version of
sponsor, Paul Simon, D-III.
water mark was 1982, when the Senate
the fiscal 1993 budget resolution (H
That quip - vintage Dole -
adopted an amendment, only to see it
masks a growing concern among some
die in the House. The last time the
By John R. Cranford
supporters, as well as some who op-
Senate went on record, in 1986, the
CQ
MAY 9, 1992 - 1233
Harry Truman
Dwight Eisenhower
John Kennedy
Lyndon Johnson
1946-1953
1954-1961
1962-1963
1964-1969
$4.0
$11.8
$6.1
$0.6
$3.9
$3.4
$0.3
$3.2
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962 1963
1964 1965 1966 1967 1968 1969
$3.1
$1.5
$1.2
$3.0
$2.8
$3.3
$7.1
$4.8
$1.4
$6.5
$5.9
$3.7
$12.8
$8.6
$15.9
Periodic sur-
$25.2
A Cascade of Red Ink
pluses and
relatively small
deficits were
commonplace
In billions of dollars;
until the
adapted from the National Taxpayers Union
Vietnam War.
amendment failed by one vote; in
anced budget amendment was 1983.
What Would an Amendment Do?
1990, the House fell seven votes short.
(Story, p. 1236)
Two slightly different versions of a
(1990 Almanac, p. 174)
Congressional committees have
balanced-budget amendment are get-
But suddenly this year, the amend-
paid only a smattering of attention to
ting the most attention on Capitol
ment has new life in Congress and is
the issue, and there is little up-to-date
Hill. Both closely track amendments
attracting support from unexpected,
analysis of how an amendment would
that were defeated in prior Con-
read liberal, quarters.
work - if it would work at all.
gresses. Both seem to enjoy broad sup-
Why now? The answer seems to be
The House Budget Committee has
port. And both are criticized by some
a combination of lawmakers' deep-
now launched a series of hearings.
Republicans as not going far enough.
seated despair over their inability to
Chairman Leon E. Panetta, D-Calif.,
Simon's amendment (S J Res 18)
control the deficit and election-year
an amendment foe, promises to air
was approved on an 11-3 vote in the
anxiety over the public's low regard for
thoroughly all questions about the
Senate Judiciary Committee on May
Congress. (Weekly Report, p. 1140)
need for amending the Constitution.
23, 1991. It has 27 cosponsors, half of
"In principle, I'm against it," says
"This is a serious step, and we need to
whom are Democrats. (1991 Weekly
Sen. Warren B. Rudman, R-N.H.,
evaluate its implications for the Con-
Report, p. 1363)
whose frustration over the deficit
stitution, as well as for this body," he
In the House, Stenholm introduced
prompted his decision in March not to
told the House on May 6.
H J Res 290, which has 275 cospon-
seek re-election. "But this situation has
"The devil is in the details," wor-
sors, 116 of them Democrats. Sten-
me petrified
A lot of very reasonable
ries Stephen Bell, former Republican
holm hopes the Judiciary Committee
people have come to this conclusion."
staff director of the Senate Budget
will consider the amendment soon.
Many liberal Democrats, who tradi-
Committee and now a managing direc-
But even without committee action,
tionally have opposed such a restraint
tor in the Washington office of Salo-
there would plainly be more than the
on government spending, share his con-
mon Brothers.
required 218 members willing to sign a
cerns. Some - Reps. Joseph P. Ken-
"It's a hell of a lot harder to change
discharge petition to bring the amend-
nedy II of Massachusetts and Patricia
a constitutional amendment than a
ment straight to the House floor.
Schroeder of Colorado, for example -
law. They have to be very careful that
Simon's is the simpler of the two.
support the balanced-budget drive.
any
amendment
gets done what
It would require that total federal gov-
"Deficit spending is a transfer
they want to get done," he says.
ernment outlays (actual spending) not
from ordinary taxpayers to the
"What you want to do is make sure it
exceed the government's total receipts
wealthy holders of the paper," Ken-
isn't a hoax."
for a given year. It would take three-
nedy argues, adding, "It's gotten to
Even some deficit hawks have
fifths of the total membership (not
the point where nterest [on the fed-
raised voices of caution.
just those present and voting) of each
eral debt] exceeds all social spending."
"Adherence to a balanced-budget
chamber to override this requirement.
Howard M. Metzenbaum, D-
rule would severely limit the govern-
Even then, the deficit could not rise
Ohio, who has opposed a balanced-
ment's ability to stabilize the econ-
freely: Congress would have to ap-
budget amendment, also complains of
omy," warns Robert D. Reischauer, di-
prove a specific deficit amount.
frustration about the deficit. "For the
rector of the Congressional Budget
Simon's amendment would also re-
first time, I'm re-evaluating. But I'm
Office (CBO). In particular, he told
quire the president to submit a bal-
not there yet."
House Budget on May 6, a balanced
anced budget for each fiscal year. A bill
The growing support is all the
budget amendment could neutralize
to increase revenue could be enacted
more surprising because there has
the economy's automatic stabilizers,
only if it were approved by a majority of
been little in recent years of the grass-
such as unemployment insurance,
the entire membership of the House
roots clamor for a balanced budget
which cause spending to rise to offset
and Senate. Congress could waive the
that was a hallmark of the early 1980s.
the effects of slow growth.
requirements in the event of a declared
The last time a state legislature
But such concerns appear second-
war or when an enacted law declared
passed a resolution calling for a con-
ary to the broader worry about the
that an ongoing military conflict threat-
stitutional convention to write a bal-
size of the deficit.
ened national security.
1234 - MAY 9, 1992
CQ
Richard Nixon
Gerald Ford
Jimmy Carter
Ronald Reagan
George Bush
1970-1974
1975-1976
1977-1980
1981-1988
1989-
1970 1971 1972 1973 1974
1975 1976
1977 1978 1979 1980
1981 1982 1983 1984 1985 1986 1987 1988
1989 1990 1991 1992
$2.8
$6.1
$14.9
$23.0 $23.4
$40.2
$53.2
$53.7
$59.2
$73.7
$73.8
$79.0
Stenholm's amendment differs in
two significant respects.
First, it would require Congress and
the president to "agree on an estimate
By the mid-1970s,
of
total
receipts
by enactment of a
$128.0
deficits were
law devoted solely to that subject." Ac-
enormous by
tual outlays for a particular year could
peacetime stand-
$149.8
$153.5
not exceed that revenue estimate, un-
ards-in excess
$155.2
less three-fifths of both chambers voted
of 3 percent of
to permit a specific deficit.
the gross domestic-
Second, Stenholm would require a
product (GDP).
three-fifths majority in both chambers
$185.4
to pass any bill that increased the
limit on federal debt. The debt limit
$207.8
- a statutory ceiling on the govern-
$212.3
$221.2
$220.5
ment's total accumulated deficits -
must be increased periodically to ac-
opponent who nevertheless advocates
commodate additional borrowing. Un-
attacking the deficit. "It will be just
der current law, raising the debt limit
another excuse to do nothing to re-
requires only a simple majority.
duce the deficit for five more years."
Other provisions of Stenholm's
"Frankly, it's not magic. It's
Except for a
$268.7
amendment are identical or nearly so
hard to enforce," Domenici concedes.
three-year,
to Simon's.
Analyses by CBO and the Congres-
Gramm-Rudman
It is expected that the states would
sional Research Service (CRS) raise a
induced retreat,
have seven years to ratify the constitu-
multitude of potential problems:
entirlements
tional change; each would take effect in
An amendment barring outlays in
pushed deficits
the second fiscal year after ratification.
excess of revenues - the approach used
above 5 percent
by both Simon and Stenholm - sounds
of GDP in the 1980s.
Would It Really Work?
simple enough. But, as CBO pointed out
Not surprisingly, neither Simon
in a 1982 study (the last time the agency
nor Stenholm see particular problems
looked closely at the subject), "Congress
with their proposals.
does not directly control the level of
Simon says that he believes Con-
either." Both are estimates that are sub-
gress and the president would willingly
ject to mistake and mahipulation.
comply with a constitutional mandate.
Although Congress appropriates
$399.7
He adds that he sees no problem in the
every dollar, the rate at which the
(est.)
Supreme Court declaring an enacted
money is spent is determined by many
appropriations bill unconstitutional, if
factors - the number of people quali-
rates of taxation, it can only guess at
that were to be necessary. "The judi-
fying for a program, the progress of a
how much taxpayers will earn and
ciary obviously enforces the laws and
defense contractor in fulfilling an or-
therefore how much tax will be col-
Constitution," he says.
der, and the level of unemployment,
lected.
Others, however, some of whom are
for example. Moreover, some spending
A more recent study, by CRS,
just turning their attention to the sub-
- interest on the federal debt and
raised dozens of questions of legal in-
ject, see plenty of problems.
Social Security benefits, for instance
terpretation.
"It won't do the job. There are too
- is paid out without Congress appro-
CRS analyst James V. Saturno ex-
many loopholes in it," says Sen. Carl
priating a specific amount.
amined a 1990 balanced-budget
Levin, D-Mich., a staunch amendment
And while Congress establishes
amendment that closely resembles
CQ
MAY 9, 1992 - 1235
The Drive To Convene a Convention
A
ctivists have been trying for nearly 20 years to build
support for a balanced-budget amendment - not
in Congress but in the state legislatures. Taking the
alternate route for amending the Constitution, they
have campaigned to get two-thirds of the states to call a
national convention.
The effort peaked in the early 1980s, with 32 of the
necessary 34 states approving a convention call. Since
then, there has been little action, but, as the issue of a
balanced budget picks up steam on Capitol Hill, there are
signs of new life on the state level. Legislatures in Wiscon-
sin, New Jersey, Minnesota and Ohio are all considering
resolutions this year. And organizers hope that if Congress
does not act in 1992, pressure from the states will grow.
The Constitution provides that amendments can
U.S. CAPITOL HISTORICAL SOCIETY
originate either in Congress or in a state-initiated con-
The signing of the Constitution in 1787.
stitutional convention. But all past efforts to call such
conventions have died for lack of sufficient state sup-
tion procedures bill ensuring an orderly process, and
port. As a result, it is not entirely clear how a meeting
nothing could be added to the Constitution without the
would be convened or how the drafting would be carried
approval of 38 states.
out. However, three-fourths of the states would have to
The critics prevailed, however, and the effort stalled.
ratify the results, just as they would a congressionally
In 1983, Missouri became the 32nd and last state to
approved amendment.
approve a resolution. The National Taxpayers Union tried
In 1975 the National Taxpayers Union, a Washing-
to keep the drive alive through the 1980s, but the cause,
ton-based lobbying group, began the grass-roots cam-
often championed by conservative Republicans, found an
paign to get state legislatures to call for a convention to
unsympathetic audience in the 18 remaining state legisla-
deal with the growing federal deficit. (The shortfall at
tures, 17 of which were controlled by Democrats.
the time was $53.2 billion. A near record high then, it
As the decade came to a close, the movement seemed to
looks decidedly modest compared with the $300 billion
slip backward. Florida, Alabama and Louisiana rescinded
to $400 billion deficit expected in fiscal 1992.) By 1980,
their resolutions; it is not clear whether the rescissions are
30 states had passed resolutions. But as the campaign
technically legal, but organizers assume that they need five
moved closer to forcing a convention, the political oppo-
more states.
sition stiffened.
While the state effort seems to be receiving little
"By the time you get around 32 or 33 [states], the
attention at the moment on Capitol Hill, organizers hope it
stakes are rising," said Frank Sorauf, a political science
will push federal lawmakers forward. "Most state legisla-
professor at the University of Minnesota at Minneapo-
tures are willing to give Congress the chance to get it done.
lis. "[The] politics become more serious and more real."
Next year will really up the pressure," said Al Cors, director
Powerful politicians, including President Jimmy Car-
of government relations for the National Taxpayers Union.
ter and Senate Budget Committee Chairman Edmund S.
Supporters see precedents in past convention drives.
Muskie, D-Maine, began speaking out against tampering
In 1911, 30 states, one shy of the two-thirds necessary,
with the Constitution, according to Sorauf. The AFL-CIO
called for the popular election of U.S. senators. Congress
also began a state-by-state drive to defeat the initiative.
responded. An amendment was approved and made part
Critics argued that interest groups, including the Na-
of the Constitution within two years.
tional Taxpayers Union, could use the convention to
"If they get the requisite number of states, it puts
radically rewrite the Constitution, proposing anything
enormous pressure on the Congress to propose and ap-
from a line-item veto to a return to the gold standard.
prove an amendment," said Sorauf. "[It's] an expression
Supporters insisted that there are safeguards to pre-
of popular will."
vent a runaway convention: Congress could pass a conven-
-Paul Nyhan
Stenholm's and identified enforcement
there will be sufficient revenue?
adjusting economic assumptions that
problems, starting with the opening re-
He also suggested that a simple ma-
underlie revenue estimates.
quirement that Congress and the presi-
jority could "evade the intent of the
And he speculated that Congress
dent "agree" - something not required
requirements for a supermajority vote
would be put in the awkward position of
anywhere in existing law.
to permit excess outlays," by taking the
regularly trying to rescind previously
Saturno wondered about the timing
step of changing the revenue estimate.
enacted appropriations, because the
of a revenue estimate bill: Could it be
Saturno found other opportunities
amendment would likely be triggered
enacted after the appropriations bills,
for Congress or the president to circum-
only by information that actual outlays
for instance, enabling Congress to spend
vent the intention of the amendment by
were about to breach the revenue target.
what it wants and then "estimate" that
changing the dates of the fiscal year or
He concluded: "The lack of an en-
1236 - MAY 9, 1992
CQ
forcement clause in this proposal
makes it unclear whether any action
could be taken to ensure that balance
was achieved, and even if it could, who
Step 2: Ratification
would be required to take it, when
would it take place or even who would
Getting a constitutional amendment through Congress is only the first
have standing to compel compliance."
step. The measure must then be ratified by three-fourths (38) of the states
within a period set by Congress; in recent times that has been seven years.
GOP Concern About Taxes
Since 1960, Congress has approved six amendments; four of them were
Beyond those enforcement con-
ratified and became part of the Constitution. An amendment giving the
cerns, many Republicans are unhappy
vote to 18-year-olds set the record for quick ratification, winning approval
that Democrats are driving the pro-
just 100 days after it was cleared by Congress. By contrast, the Equal
cess and that the amendments under
Rights Amendment (ERA), which would have outlawed discrimination
discussion would erect only the small-
based on gender, never got sufficient state support, despite the fact that
est of barriers to using tax increases to
Congress granted a 39-month extension.
offset the deficit.
"A lot of Democratic members
Amendment
Passed Congress
Ratified
Time Elapsed
think it will compel a bipartisan tax
D.C vote in presi-
increase," Bell says. The Wall Street
June 16, 1960
March 29, 1961
286 days
dential election
Journal agreed in an April 29 editorial
headlined, "Simon's Tax Increase,"
Ban poll taxes
Sept. 14, 1962
Jan. 23, 1964
1 year, 131 days
denouncing liberal support for a bal-
Presidential
July 6, 1965
Feb. 10, 1967
1 year, 219 days
anced-budget amendment as "politi-
disability
cal camouflage."
18-year-old vote
And President Bush has insisted
March 23, 1971
July 1, 1971
100 days
that a balanced-budget amendment
ERA*
March 22, 1972
Failed
10 years, 100 days
include "safeguards against a resort to
D.C. representation
Aug. 22, 1978
Failed
7 years
higher taxes as the means of comply-
in Congress **
ing with the constitutional mandate."
Sen. Bob Kasten, R-Wis., is pro-
Approved by 35 of the 38 states necessary; died June 30, 1982.
moting a change in Simon's amend-
Approved by 16 of the 38 states necessary; died Aug. 22, 1985.
ment that would require a three-fifths
majority vote in each chamber to en-
act a revenue increase larger than the
Panetta and Gephardt say they
Rudman says. "Maybe this is a way to
growth rate of the economy. Rep. Joe
want to bring the constitutional
get the American people to recognize
L. Barton, R-Texas, is sponsoring a
amendment to the House floor in tan-
what we're doing down here."
similar idea in the House.
dem with a bill that would shrink enti-
Sending an amendment to the
Simon and Stenholm reject the
tlement programs, cut defense and do-
states "would raise the level of public
idea of requiring more than a simple
mestic discretionary spending -
debate," Levin agrees. But he wants to
majority to approve tax increases.
including outright elimination of en-
do that sooner than, say, 1993, when
Most Democrats - and some Repub-
tire programs and departments - and
state legislatures may convene and
licans - appear to believe that the
increase taxes.
find the proposed amendment on
best course would be to allow Congress
The details of such a bill remain to
members' desks. "We ought to find a
and the president to choose from
be fleshed out, but it is certain that
way to pressure the presidential can-
among a combination of tax increases
Congress cannot eliminate a $400 bil-
didates to address the issue," he says.
and spending cuts.
lion deficit overnight, and even a
For an amendment opponent such as
There may be a battle on this
piecemeal approach would entail big
Foley, showing members and the states
point, especially in the Senate. But
changes.
just how deep the cuts might go could be
even Republican advocates of the
Many Republicans are opposed to
invaluable in preventing ratification.
Kasten-Barton approach don't hold
this approach, and Stenholm says it
"I think it would probably demon-
out a lot of hope that they will prevail.
would be impossible to do this year.
strate right away something that has
So Panetta is not sanguine that
to be demonstrated that this is not
Raising Consciousness
such a bill stands a chance of passage.
a painless exercise," Foley said. "It is
If a balanced-budget amendment
"Members will probably vote for the
going to affect every aspect of govern-
is submitted to the states, House
amendment and then vote against do-
ment activity and all reaches of the
Democratic leaders in particular think
ing anything," he says.
federal budget."
that would also be an appropriate
However, many members of both
But Foley holds out little hope that
time for Congress to begin debating
parties - including supporters and
the amendment will die. "Everything I
seriously just how to cut the deficit.
opponents of a constitutional amend-
have seen from the state legislatures
"We ought to set ourselves a goal
ment - see an educational advantage
on this question indicates to me that it
of reducing the deficit systematically
to the process. Regardless of the
would be rapidly ratified and with
on a year-by-year basis until we reach
amendment's success or failure, they
probably less consideration, debate
the year in which it becomes effec-
think it is healthy to raise the level of
and judgment than perhaps any
tive," Speaker Thomas S. Foley, D-
public debate about spending and tax-
amendment ever submitted to the
Wash., told reporters May 7. "It would
ing choices.
states in this century at least," he
be disastrous to wait."
"We're making no choices now,"
said.
CQ
MAY 9, 1992 - 1237
Mary of air
195103
State Balanced Budgets and Deficit Limitations:
Constitutional and Statutory Provisions
X-6697
Governor
Governor
May Carry
May Not
May Not
Constitutional
Must
Legislature
Must
Over Deficit
Carry Over
Carry Over
Limit on
Submit a
Must Pass
Sign a
For One
Deficit
Deficit
General
Balanced
a Balanced
Balanced
Year
Into Next
into Next
Obligation
State
Budget
(Budget
Budget
Maximum
Biennium
Fiscal Year
Debt'
Alabama
C,S
YR
YR
NP
NP
YR
YR
Alaska²
Arizona
S
$
S
NP
NP
YR
$350,000
Arkansas
S
NP
NP
NP
YR
YR
NP
California
YR
NP
YR
YRS
NP
YR3
300,000
Colorado
$
C
C
C
C
C
YR
Connecticut
YR
YR
YR
NP
NP
NP
NP
Delaware
C
C
C
NP
YR
YR
NP
Florida
$
C
NP
NP
NP
YR
NP
NP
NP
4
Georgia
YR
YR
YR
NP
Hawaii
CS
NP
C.S
NP
NP
NP
$
Idaho
C
C
NP
NP
NP
YR
2,000.000
Illinois
C
C
NP
NP
NP
NP
NP
Indiana
C
c
C
NP
YR
YR
O
towa
C
C
NP
NP
NP
NP
250,000
Kansas
$
S
NP
NP
YR
YR
1,000,000
Kentucky
C
c
C
NP
YR
YR
500,000
Louisiana
YR
YR
YR
NP
NP
NP
6
Maine
YR
NP
NP
NP
NP
NP
2,000,000
Maryland
c
c
NP
YR'
YR'
YR'
NP
-
Massachusettes
NP
NP
NP
NP
NP
NP
Michigan
C
c
C
NP
YR
YR
0
Minnesota
CS
CS
S
CS
NP
NP
Mississippi
S
NP
NP
NP
NP
NP
8
Missouri
C
c
C
NP
NP
YR
0
Montana
C
c
NP
YR
YR
YR
NP
Nebraska
c
C
C
NP
NP
NP
100,000
Nevada
S
C
NP
NP
NP
NP
AV
New Hampshire
S
NP
YR
NP
YR
YR
NP
New Jersey
c
c
C
NP
YR
YR
1
New Mexico
NP
NP
YR
NP
NP
YR
AV
New York
C
NP
c
C
NP
NP
V
North Carolina
c
C
C
NP
YR
YR
YR
North Dakota
YR
YR
YR
NP
YR
NP
NP
Ohio
YR
YR
YR
NP
YR
YR
10
Oklahoma
$
NP
NP
NP
YR
YR
V
Oragon
CS
C.S
NP
NP
NP
50,000
Pennsylvania
c
c
S
c
NP
NP
YR
Rhode Island
C.S
CS
NP
NP
YR
V
South Carolina
C
c
c
NP
YR
YR
11
South Dakota
C
C
c
NP
NP
YR
100.000
Tennessee
C
c
c
NP
NP
YR
NP
Texas
C
c
C
NP
NP
NP
200,000
Utah
$
c
NP
NP
YR
YR
AV
Vermont
NP
NP
NP
NP
NP
NP
NP
Virginia
$
NP
NP
NP
S
$
V,T
Washington
$
NP
NP
NP
YR
NP
T
West Virginia2
Wisconsin
NP
NP
NP
NP
NP
NP
AV
Wyoming
YR
YR
YR
NP
YR
YR
AV
There are 34 states corrently, which have som provision
Callingfor a batanced State budget
6 Advisory Commission on Intergovernmental Relations
State Balanced Budgets and Deficit Limitations:
Constitutional and Statutory Provisions
Key
AV-Percentage of property value
NP-No provision
T-Percentage of taxes
YR-Yes/restriction applies
C-Constitutional provision
S-Statutory provision
V-Popular vote required for any debt
1 Different provisions may apply to other long- and short-term debts.
2 Information not available.
3 May carry over only with legislative concurrence.
4 Not more than 10% of prior year's net general revenues.
5 Not to exceed 20% of average of General Fund revenues for 3 fiscal years preceding: may not be exceeded by popular vote.
6 Limited to 10% of 3-year average of Bond Security and Redemption Fund.
7 General Fund must have positive balance at end of fiscal year of proposed budget
05% of General Fund
*5% of General Fund.
10 Highway, $500 million; coal, $100 million.
11 Limited to 5% of last completed fiscal year revenue for capital improvement bonds.
Source: National Association of State Budget Officers, Budgetary Processes in the States, 1987.
Advisory Commission on Intergovernmental Relations 7
3/15/92
10:08
F-168 T-272 P-882/802 MAY 14 '52 12:87
+2825452696
NAT TAXPAYER'S UNION
pob
A NONFARTISANT NONPROFIT ORGANIZATION DEDICATED TO int PUBLIC INTEREST
WASHINGTON. DISTRICT of COLUMBIA 20002
TELEPHONE: AREA CODE (20th 545-1360
329 PENNSYLVANIA AVENUE, SOUTHEAST
543-1300
NASTONAL TAXPAYERS UNION CONTINNS CALLING 10 COUNT as 32 STATE LISISLATURES
CONVENTION
The 32 state legislatures which have passed balanced budget amendment resolu-
tions 1201
HJR 227, Act 302
1976
Alabama 1
1982
Alaska
HJR 17
SJR 1002, -ECH 2003
1979, 1977
Arisona
1979
Arkansas
HJR 1
1978
Colorado
SJM 1
1975
Delaware
HCR 36
Sen. Memorial #234, IN 2801
1976, 1976
Florida 2
Res. Act. #93, MR #469-1267
1976
Georgia
1979
Idaho
MCR 7
1979
Indiana
SJR 8
1979
SJR 1
Iewa
1978
SCR 1661
Kansas
Louisiana 3
SCR 4, SR 73, PCR 269
1979, 1978, 1975
Maryland
SJR 4 (Original), Md JR 77 (Enrolled) 1975 1975
Mississippi
HCR S1
1983
Missouri
SCR 3
1975
Nebraska
LR 106
SJR e, SJR 2
1979, 1977
Mevada
1979
New Hampshire
HCR a
1976
New Mexico
SJR 1
1979
North Carolina
Resulution 5
1975
North Dakota
SCR 4018
1976
Cklahoma
HJR 1049
1977
SJ Memorial #2
Oregon
1976
Pennsylvania
HR 236
SCR 1024, SCR 570
1978, 1976
South carolina
1979
South Dakota
SJR 1
1977
Tennessee
HJR 22
1978. 1977
Texas
MCR 13, HCR 31
1979
Utah
HJR 12
1976
Virginia
SJR 36
HJR 12 (Original) JR 1 (Enrolled)
1977
Wyoming
Certified copies of these resolutions are on file at the National Taxpayers
union.
1 Alabama voted to rescind 4/28/88.
2 Florida voted to rescind 5/25/88 (SM 302).
3 Louisiana voted to rescind 7/90.
DKII:67
Contact Al Cors
202/543-1303
THE AMERICAN TAXPAYES ACTS THROUGH PeTU
TSSN:
FROM
EXECUTIVE OFFICE OF THE PRESIDENT
01-Jun-1992 11:45am
TO:
Gary J. Gershowitz
FROM:
Elizabeth M. Hinchliffe
Office of Communications
SUBJECT: hi
Hi -- welcome back. Hope you had a good weekend.
I'm working away on the Balanced Budget thing (yuck...), and I
came up with some information I need. I'm working with Tom Scully
and with Calio's office on the substance of the address, so please
don't contact them for this information.
V1. Have other Presidents (especially the Founding Fathers)
written/said anything in support of balanced budgets?
J2. Can you find any old calls from Bush (as many years back as
possible) for balanced budget?
J3. Recent general statements the President has made on the need
for institutional change (particularly his "five pillars" speech
-- was it March 20th?).
V4. What is our current GNP? How much does the U.S. make in
federal taxes every year?
How many states have balanced budget amendments? Any
examples?
V6.debate Can you find some magazine articles about balanced budget
I'm looking for explanation and analysis, pros and cons.
Thanks. The speech is due tomorrow, so ASAP on these would be
great.
EXECUTIVE OFFICE OF THE PRESIDENT
01-Jun-1992 11:40am
TO:
Gary J. Gershowitz
FROM:
Elizabeth M. Hinchliffe
Office of Communications
SUBJECT: hi
Hi -- welcome back. Hope you had a good weekend.
I'm working away on the Balanced Budget thing (yuck...), and I
came up with some information I need. I'm working with Tom Scully
and with Calio's office on the substance of the address, so please
don't contact them for this information.
1. Have other Presidents (especially the Founding Fathers)
written/said anything in support of balanced budgets?
2. Can you find any old calls from Bush (as many years back as
possible) for balanced budget?
3. Recent general statements the President has made on the need
for institutional change (particularly his "five pillars" speech
-- was it March 20th?).
4. What is our current GNP? How much does the U.S. make in
federal taxes every year?
5. How many states have balanced budget amendments? Any
examples?
6. Can you find some magazine articles about balanced budget
debate I'm looking for explanation and analysis, pros and cons.
Thanks. The speech is due tomorrow, so ASAP on these would be
great.