Americans for Prosperity applauded Sen. Mike Braun (Indiana) and Rep. Jodey Arrington (Texas) for a constitutional amendment proposal aimed at putting an end to Washington’s wasteful and irresponsible spending.
The Business Cycle Balanced Budget Amendment (BCBBA) would limit federal spending to a rolling average of the three prior years’ revenues, adjusted for inflation and population, with a 10-year transition to balance. The amendment would require two-thirds of both houses of Congress to approve emergency spending.
The pandemic has kept budget reform on the back burner, but the fact is, the federal debt has ballooned to more than $30 trillion – about $92,000 for every American. This ocean of red ink boosts inflation, increases interest rates, threatens national security, and makes Americans poorer.
“The Business Cycle Balanced Budget Amendment is one of the smartest, most innovative solutions yet to getting our exploding debt under control,” said Kurt Couchman, senior fellow for fiscal policy at Americans for Prosperity. “Congress’ addiction to runaway spending has jeopardized Americans’ financial security. This legislation would restore our country’s fiscal sanity and help end Washington waste.”
Rep. Arrington and Sen. Braun’s new effort should attract broad, bipartisan support. 46 House Republicans and 14 House Democrats – conservatives, moderates, and progressives, alike – supported an earlier version of this legislation.
This practical solution draws on Rep. Arrington’s years of bipartisan fiscal leadership, including his service as a member of the House Ways and Means Committee. The BCBBA adds to Sen. Braun’s long list of creative solutions to fix the federal budget.
Other countries have had success with this same approach, most notably the “debt brake” of Switzerland’s Constitution and laws, first applied in 2003.