Proposing an amendment to the Constitution of the United States with respect to tax limitations and the balanced budget.

Constitutional Amendment - Requires the President to transmit to the Congress, before each fiscal year, a proposed statement of receipts and outlays for such fiscal year in which outlays (except those for repayment of debt principal) are not greater than receipts (except those derived from borrowing)(a proposed balanced budget). Requires the Congress to adopt, by law, a statement of receipts and outlays for such fiscal year in which outlays are not greater than receipts (a balanced budget). Authorizes the Congress to amend, by law, that balanced budget, provided revised outlays are not greater than revised receipts. Authorizes the Congress to provide in balanced budget for a specific excess of outlays over receipts by a vote directed solely to that subject in which two-thirds of the whole number of each House agree to such excess. Requires the Congress and the President to ensure that actual outlays do not exceed the outlays set forth in such balanced budget.

Prohibits any increase in the limit on the debt of the United States, unless two-thirds roll call vote of each House provides by law for such an increase.

Requires any bill that increases the internal revenue (except by a de minimis amount) to receive for final adoption the concurrence of two-thirds of each House.

Permits the Congress to waive the requirements of this article when: (1) a declaration of war is in effect; or (2) the United States is engaged in military conflict which causes an imminent and serious threat to national security and is so declared by a joint resolution, adopted by a majority of each House, which becomes law. Makes any increase in the internal revenue enacted under such a waiver effective for only two years.

Makes the internal revenue provisions of this Article effective upon ratification, and the remaining provisions effective on the later of FY 2002 or the second fiscal year beginning after ratification.