Hatch, who has been the lead sponsor or co-sponsor of 17 balanced budget amendments since his tenure in the upper chamber began in 1977, said beyond having a bill called a “balanced budget amendment,” it is important the amendment be written specifically to prevent budget tricks that would allow more spending or higher taxes.
“We need to be careful how we do that. President Obama would love to balance the budget by allowing spending to continue to skyrocket, and then taxing our way to balance,” he said.
“It caps spending at 18 percent of gross domestic product, and it establishes a supermajority requirement for tax increases. This amendment will restore constitutional limits on the size of government,” he said. GDP is the total of the country’s economic activity, absent government spending.