Gramm-Rudman-Hollings Deficit Reduction Act
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Template:Mergeto The Gramm-Hollings Deficit Reduction Act is a United States federal law passed in 1985. Its official name was the Balanced Budget and Emergency Deficit Control Act of 1985. Senators Ernest Hollings (D-South Carolina), Warren Rudman (R-New Hampshire) and Phil Gramm (R-Texas) were the chief sponsors. The Act was aimed at cutting the budget deficit, at the time the largest in history. It required Congress to compensate tax cuts or spending with other revenue, and also provided for automatic spending cuts if Congress and the President failed to do so. This provision was found unconstitutional in the case of Bowsher v. Synar, Template:Ussc and a reworked version of the bill passed; however, it failed to prevent large budget deficits.