Americans for Tax Reform urges all Senators to vote YES for S.J. Res 10, introduced by Senators Orrin Hatch and Mike Lee. S.J. Res 10 includes the critical components for a successful Balanced Budget Amendment: both significant spending restraint and, most importantly, a super-majority requirement to raise taxes. This will ensure lawmakers will rein in spending rather than force taxpayers to foot the bill for their foolhardy budgeting.
Washington has an overspending problem, not an under-taxing problem. Historically, outlays have averaged about 21 percent of Gross Domestic Product (GDP) while revenues have amounted to about 18 percent of GDP. Due to the Obama Administration and Congressional Democrats’ spending binge, outlays now average almost 25 percent of GDP, and are projected to stay around 23 percent in perpetuity.
The Senate Consensus BBA not only limits spending, but caps it at 18 percent, bringing outlays in line with historical revenue averages.
The alternate Democrat BBA, introduced by Senator Mark Udall, has many fatal flaws. It would prohibit tax relief for employers and would guarantee tax increases every year Congress fails to restrain spending, allowing tax hikes by a simple majority vote.
Any lawmaker concerned about restoring American solvency cannot seriously vote for a BBA that does not include a super-majority requirement for tax increases. To pass a BBA that allows a tax hike by simple majority is to distract from the real problem of government spending, and leaves taxpayers to foot the bill for feckless federal budgeting.
THE INTERNET TAX MORATORIUM EXPIRATION
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