Lance Proposes Constitutional Amendment Limiting National Debt

Looking to continue his state work at a federal level, U.S. Rep. Leonard Lance (R-Hunterdon County) on Friday announced a desire to amend the U.S. constitution with regards to levels of federal debt.

During a question and answer session with western Union County business leaders Friday morning in Summit, Lance said he is working with other members of Congress to craft a constitutional amendment to limit the level of the national debt going forward. The amendment is similar to one he authored for the state constitution while he was a state senator.

Lance said the amendment is needed in order to control the level of federal debt and reduce the budget deficit, which he said would help the overall economy by ending what he sees as an uncertainty in the business community over issues relating to taxes, the debt and the impact of health care reform. He also told the group of business leaders that he is concerned the rising level of federal debt would harm the country's place in the world.

"The 20th century was an American century where we rose to a level of prominence in the world," Lance said. "In the 21st century will we lost that to China, India or a place I cannot name."

In an interview with Patch following the meeting, Lance said the amendment is in the process of being drafted and will likely not be introduced in Congress until the new year. He said he and legislative partners are currently working on the specifics of the proposed amendment, but would likely tie the level of debt to a percentage of the nation's gross domestic product. He said the amendment would also likely include a provision to for Congress to override the limit by a super majority vote in the case of a war or national emergency.

"I believe the new Congress will be more sympathetic to my point of view than in the current Congress," Lance said to the business leaders.

The proposed amendment is similar to the one Lance wrote for the state constitution which requires voter permission for state borrowing. The amendment, which Lance advocated for a decade, was passed by the legislature and a statewide referendum in 2008, the same year Lance was first elected to Congress. The amendment passed in each of the state's 566 municipalities. Lance, a former state senate minority leader, is considered an expert on state finances and has been a long time advocate for deficit reduction.

Lance and his allies face an uphill climb to amend the constitution, needing to garner a two-thirds majority vote in the House and Senate and then passage by three-fourths of the states. Of the over 10,000 amendments proposed in Congress sinc the constitution was written in 1788 only 27 have passed. The last amendment to pass, preventing congressional pay raises from taking effect until a new Congress has convened, received congressional approval in 1789 but did not receive approval from the states until 1992.

Lance has been locked in a debate with his Democratic opponent Ed Potosnak over federal spending in New Jersey, with the incumbent calling for tax cuts to increase the state's place on the list of federal spending in terms of the state's tax contributions to the federal government. Potosnak has called for increased federal spending in the state.

Lance delivered the remarks during a speech to the Suburban Chambers of Commerce, an advocacy organization representing businesses in Berkeley Heights, New Providence and Summit. The congressman used his remarks and the question and answer period to stress many of his previously stated positions on the economy and business policy. 

Outside of the debt amendment, Lance stressed his belief that uncertainty in the business community has hindered economic growth, calling for the extension of the Bush tax cuts and a look at changing the recently passed health care reform law. Lance touted recent comments from former Obama administration budget director, Peter Orszag, in endorsing a two-year extension of the Bush tax cuts, a position also supported by House Minority Leader John Boehner (R-Ohio).

"I want to extend all of the tax cuts for at least the next two years and that is the position of Mr. Boehner, who would be speaker if we are in the majority," Lance said to the business group.

Lance said that while he does not support the president's recently announced $50 billion infrastructure spending program, he does support Obama's proposed spending on research and development and equipment purchasing for businesses. The proposal, which will likely be voted on by Congress this year, would likely assist the state's pharmaceutical industry, which is one of the largest industries in Lance's district. 

Lance said he would likely not support the bill if the research and development proposal were joined with the infrastructure-spending plan in a final congressional vote. 

"We are sympathetic to the research and development proposal that the president announced in Cleveland," Lance said.