Proposing an amendment to the Constitution of the United States requiring a balanced budget for the Federal Government.

Limits on federal spending and taxes

Had it passed, the amendment would have required that total federal spending in any year not exceed the average annual receipts from the three prior years, adjusted for changes in the citizen population and for inflation. Debt payments would not have counted as spending and borrowing proceeds would not have counted as receipts. Congress could have approved specific spending above the cap only by a two‑thirds roll call vote in each House, while a declared war year could allow excess spending by a roll call vote. Any bill creating a new tax or raising a tax rate would not have become law unless two‑thirds of each House approved it by roll call. The article would have taken effect in the fifth year after ratification and it would have required Congress to pass laws to enforce and implement the rules.