Politics

Paying As We Go

By Karina

Today, the House passed the Statutory Pay-As-You-Go Act 2009 (HR 2920) by a vote of 265-166. This bill requires Congress to offset the costs of tax cuts or increases in entitlement spending with savings elsewhere in the budget. If the net effect of all legislation enacted during a session of Congress increased the deficit, there would be an across-the-board reduction in certain mandatory programs. By restoring ?pay-as-you-go’ budget discipline as the law of the land, we are returning to the basic rule for every family budget: you don’t spend money you don’t have.

Speaker Pelosi:

Speaker Pelosi: “It?s a very important day for our country because it is a day when the Congress of the United States says to the American people: We will be accountable. We have said it, we have done it, and now we will make it a statute of the law of the land.”

Rep. George Miller (D-CA):

Rep. Miller: “President Bush and the Republican-controlled Congress eliminated PAYGO rules. As a result, interest payments on the long-term debt are crowding out national priorities. In 2007, Democrats made PAYGO part of our rules again. Our legislation today strengthens those rules by giving them the force of law. Our bill says Congress could neither cut taxes nor increase entitlement spending without first deciding how to afford those new costs. PAYGO requires difficult decisions about national priorities and how to afford them. If we can?t pay for new tax cuts or entitlement spending, we can?t have them. It is that simple.”

After years of fiscal recklessness by President Bush and Republicans, President Obama and Congress are committed to getting our budget under control. Other actions this year demonstrating a strong commitment to fiscal responsibility include passing a budget that cuts the deficit by two-thirds in four years, passing a clean energy bill that is fully paid for, and working on a fully paid for health care reform bill ? the single most important thing we can do to bring down long-term deficits.

Learn more about the Pay-As-You-Go Act>>

Full post as published by The Gavel on July 22, 2009 (boomark / email).