Most Americans want Congress to balance the budget, but it must be balanced in a way that prevents a gross tax increase at the same time. And why can’t we balance it while eliminating the national debt as well?
Prior to Obama, the budget on average was around 19.5% of gross domestic product (GDP), so limiting spending to a maximum of 18% of the preceding year’s GDP should be part of any amendment.
By dedicating an additional amount not to exceed 2% of GDP to paying down the debt, the period required to pay off the debt would be about 50 years. The GDP in 2009 was $14.1 trillion, so 2% would be $282 billion. However, with economic recovery the GDP will increase, so payments will increase; therefore, a 50-year payment period is estimated.
A total of 20% of GDP annually will be the maximum federal budget for fifty years (about what the average budget was during the Bush 43 years), then, when the national debt is paid off, the budget will be 18% of GDP.
So what would this amendment look like? Here it is:
Amendment 28 – Balanced Budget and Pay Down of Debt.
1. The United States shall not in any fiscal year appropriate nor spend money in excess of revenues; nor shall it take in revenue more than twenty percent of the gross domestic product of the preceding year, two percent of which shall be used to pay down the national debt. After the national debt is extinguished, theUnited States shall not take in revenue more than eighteen percent of the gross domestic product of the preceding year. In the case of an emergency, the government may exceed such spending and revenue upon the concurrence of three-fourths of the Representatives and Senators.
2. Within fifty years following adoption of this amendment, the United States shall extinguish its current debt; thereafter, the debt of the United States shall not exceed ten percent of the gross domestic product of the preceding fiscal year. In the case of an emergency, the debt of the United States may exceed the amount prescribed upon the concurrence of three-fourths of the Representatives and Senators.