98-368 -- A Tax Limitation Constitutional Amendment: Issues and Options Concerning a Super-Majority Requirement
Updated July 15, 2003

	Introduction

In recent years, there have been a number of proposals to place limits on the federal government's authority to raise taxes. The term "tax limitation" is also used to describelegislativeproposals that would limit Congress's ability to consider revenue measures, regardless of their effect on the levelor growthof tax revenues, by requiring a super-majority (typically two-thirds or three-fifths) for their passage. This type oflimitationwould allow increases in taxes only under one of two circumstances. First, tax revenues could increase underexisting taxlaws as a result of economic upturns. Alternatively, they could increase because of a new law, but only if it werepassed bya super-majority. On June 12, 2002, the proposal was considered by the House under the terms of H.Res. 96 failed to achieve the necessary two-thirds, 227-178. H.J.Res. 111 failed to achieve thenecessary two-thirds, 238-186. (8)
Action in the104th Congress.
Proposals to limit the federal government's authority to raise taxes have been made several times in recent years. Most frequently, these proposals call for limits on Congress's ability to passrevenuemeasures. Typically, limitation proposals would allow increases in tax revenues only under one of twocircumstances. First, tax revenues could increase under existing tax laws as a result of economic upturns. Alternatively, they couldincreasebecause of a new law, but only if it were passed by a super-majority (typically two-thirds or three-fifths). Questionsabouthow such proposals might be applied in practice have not been clearly answered. Congress has previouslyconsidered suchproposals in 1996, 1997, 1998, 1999, 2000, and 2001. In each case the proposal has failed to achieve the two-thirdsmajority necessary for passage.
Most recently, the House considered H.J.Res. 96 on June 12, 2002. The measure failed to achieve thenecessary two-thirds, 227-178. This report will be updated to reflect any further legislative actions on suchproposals.