Following is the text of the balanced budget-tax limitation proposed constitutional amendment as reported to the Senate by the Judiciary Committee:
Section 1. Prior to each fiscal year, the Congress shall adopt a statement of receipts and outlays for that year in which total outlays are no greater than total receipts. The Congress may amend such statement provided revised outlays are no greater than revised receipts. Whenever three-fifths of the whole number of both Houses shall deem it necessary, Congress in such statement may provide for a specific excess of outlays over receipts by a vote directed solely to that subject. The Congress and the president shall ensure that actual outlays do not exceed the outlays set forth in such statement.
Section 2. Total receipts for any fiscal year set forth in the statement adopted pursuant to this article shall not increase by a rate greater than the rate of increase in national income in the last calendar year ending before such fiscal year, unless a majority of the whole number of both houses of Congress shall have passed a bill directed solely to approving specific additional receipts and such bill has become law.
Section 3. The Congress may waive the provisions of this article for any fiscal year in which a declaration of war is in effect.
Section 4. The Congress may not require that the States engage in additional activities without compensation equal to the additional costs.
Section 5. Total receipts shall include all receipts of the United States except those derived from borrowing and total outlays shall include all outlays of the United States except those for repayment of debt principal.
Section 6. This article shall take effect for the second fiscal year beginning after its ratification.