Balanced Budget Amendment

The Facts About A

Since Our Nation’s Founding

Since Our Nation’s Founding

“I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government.”Thomas JeffersonLetter to John Taylor1798

Since Our Nation’s Founding

“Only a constitutional amendment will do the job. We’ve tried the carrot, and it failed. With the stick of a Balanced Budget Amendment, we can stop government squandering, overtaxing ways, and save our economy.” Ronald ReaganApril 29, 1982

And Now…

“We don’t need a constitutional amendment to do our jobs. The Constitution already tells us to do our jobs -- and to make sure that the government is living within its means and making responsible choices.”

President Barack ObamaJuly 15, 2011

And Now…

Senate Majority Leader Harry Reid said the balanced-budget amendment being considered in the House is “radical.”The HillJuly 19, 2011

And Now…

“[The] notion that we somehow have to change the Constitution to do what we were elected to do is just wrong.”Senate Majority Whip Dick Durbin

And Now…

“U.S. fiscal policy is on an unsustainable path to an extent that it cannot be solved by minor tinkering.”Doug ElmendorfDirector, Congressional Budget OfficeJanuary 27, 2010

Just Ask the Job Creators

“[T]his administration is the greatest wet blanket to business, and progress and job creation in my lifetime…[U]ntil we change the tempo and the conversation from Washington, it's not going to change. And those of us who have business opportunities and the capital to do it are going to sit in fear of the President.”Steve WynnCEO of Wynn ResortsJuly 18, 2011

Just Ask the Job Creators

“Home Depot would never have succeeded if we'd tried to start it today…If we don't lower spending and if we don't deal with paying down the debt, we are going to have to raise taxes. Even brain-dead economists understand that when you raise taxes, you cost jobs.”Bernie MarcusFounder of Home DepotJune 20, 2011

It Came Down To One Vote

Sixteen years ago, a Balanced Budget Amendment passed the House with bipartisan support, only to lose by one vote in the U.S. Senate.

HOUSE Vote: 300-132 (228 Republicans, 72 Democrats

voted yes)

SENATE Vote: 65-35 (51 Republicans, 14 Democrats voted

yes)

Since 1995,

Our Nation’s Debt Has

Nearly Tripled

Source: Office of Management and Budget

The National Debt Has SKYROCKETED Since the

1995 Defeat of a Balanced Budget Amendment

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

0

5

10

15

20

25

2011: $14.3 Trillion

1995: $4.9 Trillion

$26.3 Trillion by 2021

OBAMA BUDGET PROJECTIONS

How Fast Can You Rack Up $3.95 Trillion In New Debt?

U.S. Presidents, 1789-1992

It took 42 Presidents more than

200 Yearsto increase the debt by $3.95

trillion.

It took Barack Obama just

2.5 Yearsto increase the debt by $3.95

trillion.

What Does This Debt Mean For Our Children?

Photo: Associated Press

A Permanent Solution

The only permanent solution is to enshrine it in the Constitution and legally force future Congresses and Presidents to stop spending money they don’t have.

49 states currently abide by some form of a balanced budget requirement.

No Better Time Than Now

National polls prove the American public supports a Balanced Budget Amendment.

Where Do We Stand Now?

As a part of the August debt limit agreement, the House and Senate will have to vote between October 1, 2011, and December 31, 2011, on a Balanced Budget Amendment to the Constitution (BBA).

2/3 Passage Requirement in House & Senate

All Senate Republicans have supported a version of the BBA, and nearly all House Republicans supported Cut, Cap & Balance.

What Happens After Congress Passes A Balanced Budget

Amendment?

Sent to all 50 states for ratificationo States then move to ratify the

amendment in a statewide vote

o Timeline (deadline) for ratification may be implemented

o 3/4 of states must approve the amendment

Additional Slides

The Facts About Our Debt

1. We have a debt crisis facing our nation.

2. The debt crisis threatens our job growth, our national security and sovereignty, and our nation’s children.

3. We have a debt crisis because Washington spends too much, not because Washington taxes too little.

4. The spending is driven by retirement and health security programs.

5. The cost of doing nothing is unacceptable.

6. What we can do today.

Source: Congressional Budget Office, Office of Management and Budget

1941 1947 1953 1959 1965 1971 1977 1983 1989 1995 2001 2007 2013 2019 2025 2031 2037 2043 20490%

50%

100%

150%

200%

250%

300%

Crushing Burden of DebtDebt Held by Public as

Share of EconomyCURRENT POLICY

2011

Source: Office of Management and Budget, President’s Budget FY 2012

THE FEDERAL GOVERNMENT IS BORROWING MORE THAN 42 CENTS OF

EVERY DOLLAR IT SPENDS

“Debt Day”

Source: Office of Management and Budget, President’s Budget FY 2012

All spending after July 27 of

this year is borrowed spending.

Source: Office of Management and Budget Historic Tables, Congressional Budget Office; projections based on the CBO’s

Alternative Fiscal Scenario.

1947 1953 1959 1965 1971 1977 1983 1989 1995 2001 2007 2013 2019 2025 2031 2037 2043 2049 2055 2061 2067 2073 207910

20

30

40

50

60

70

80

We Are In A Spending-Driven Debt CrisisHistoric/Projected Spending & Revenue

As A Percentage Of The Economy

Spending Tax Revenue