Balanced Budget Amendment

[Denny Crane]

My proposal for a BBA would be something like this:

1) Government will run on two budgets; operating budget and capital budget.
2) Government must pay its recurring expenses from its operating budget
3) Government may borrow money for projects like infrastructure investments, which is spent from the capital budget.
4) Government may not borrow to fund its operations.
5) Any surpluses will be used to pay down the debt and then will be returned to the taxpayer.

Ideally, I'd like to see:
Any tax increase or proposed borrowing will be put to a public ballot initiative.

 

[maxiep]

I would add that a BBA can be suspended in a time of war at the amount it costs to prosceute that war (and no more).

 

[maxiep]

If we can't get our affairs in order, this is our future: http://finance.yahoo.com/blogs/dail...rope-no-way-debt-restructuring-171536164.html