As part of the deal that gave President Barack Obama the increase in the federal debt ceiling he so desperately wanted, both houses of Congress are required to hold a vote on a Balanced Budget Amendment to the U.S. Constitution. The House of Representatives has already acted but failed to achieve the two-thirds support necessary for it to pass. Now it’s the Senate’s turn.
There are actually three different versions of the amendment under consideration. The good, or strong, version sponsored by Senators Orrin Hatch (R-Utah), Mike Lee (R-Utah), Rand Paul (R-Ky.), and Pat Toomey (R-Pa.) not only requires that federal outlays match revenues but also makes it harder to raise taxes by requiring a two-thirds super-majority of both houses to do so. It also pegs total federal spending to an historic proportion of the total U.S. economy and prevents the courts from being able to order a tax increase to achieve balance should the Congress pass a budget in which spending exceeds revenues. It is a balanced budget amendment with teeth. All 47 Republicans senators have co-sponsored this approach, and it will be voted on this week.
The bad version, the one the House voted on but failed to pass, simply requires that expenditures be equal to income. Critics of this approach say it is bad because it would be far less helpful in the effort to hold total federal spending down, and could actually be counter-productive, if the courts were to mandate a tax increase to achieve balance. Some call it the tax-increase balanced budget amendment.
The bogus version, which the Senate is also expected to take up this week, is being proposed by Sen. Mark Udall (D-Colo.) and is presumed to have the active support of Senate Majority Leader Harry Reid (D-Nev.). To say that it has so many holes in it that it resembles a piece of Swiss cheese is unfair to the Swiss. It is much worse than merely bad….
Read more from Colin A. Hanna at FloydReports.com.