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Tax Limitation Amendment
Every year around April since
1995, the U.S. House of Representatives has voted on a constitutional
amendment requiring a "supermajority" of two-thirds for all tax increases.
The U.S. Senate has conducted several votes on the issue, including
a "sense of the Senate" resolution.
The Tax Limitation Amendment
is a vital protection for taxpayers against future tax increases. A
simple majority vote to raise taxes is an invitation for politicians
to do what they are too often prone to do: raise taxes. Four of the
last five major tax increases passed Congress by less than a two-thirds
supermajority.
Americans for Tax Reform
rates the vote on the Tax Limitation Amendment as one of the most important
of any Congress.
13 states currently
have some form of supermajority requirement to raise taxes. Of those
13, one requires a supermajority to increase the expenditure limit (beyond
a designated dollar amount) and another requires voter approval for
an increased expenditure limit beyond the rate of population growth
and the rate of inflation.
As many states face budget shortfalls, revenue and expenditure limits
have been under attack and often are blamed for these shortfalls. However,
the contrary is what is true. During the times of surpluses, many states
spent the extra money on permanent programs. With the surpluses drying
up, states are now faced with shortfalls that could have been avoided
had a revenue and/or expenditure limit be enacted. Revenue and expenditure
limits paired with supermajority requirements restrain the growth of
government and limits the probability of budget shortfalls like we see
today and keeps money in the pockets of taxpayers - allowing them to
invest in (and therefore stimulate) the economy.
This area is under construction. Watch for updates over the next several weeks.
Legislative Issues
In the States
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