In a largely symbolic gesture, the House of Representatives yesterday passed an updated “pay-as-you-go” bill (also known as PayGo) intended to constrain deficit spending. In a nutshell, PayGo requires that new government spending or tax cuts be offset by corresponding spending cuts or tax increases. In theory, as long as the PayGo rules are followed, the deficit would not get any worse.
There are two problems, however, with this new PayGo bill. First, it ignores the fact that we already have a $1.8 trillion budget deficit. We don’t need a system that keeps us at that level. We need a way to eliminate the massive deficit that already exists, and this bill does nothing toward that end.
The second problem with the PayGo bill passed by the House is that it contains so many exceptions, it is ineffective at even keeping the deficit where it is now. For example, the new PayGo rules don’t apply to the appropriations bills that Congress passes each year. In fact, this new PayGo bill comes at a time when the House is wrapping up action on at least 12 incredibly expensive appropriations bills that will further balloon the deficit. And even if the PayGo rules happen to apply to a spending bill Congress wants to pass, all they have to do “waive” the rules, and pass the spending measure anyway.
At the end of the day, the bill gives House members the opportunity to claim fiscal responsibility while continuing their “borrowing-and-spending” ways. They really do think we’re idiots!
It’s imperative that we let the President and Congressional leaders know how we feel about the federal government’s reckless borrowing and spending that is destroying the very foundation of our economy and our nation. Please add your name to The National Debt Petition and encourage your friends to do the same.