Rep. Miller, an Early Champion of PAYGO Budgeting, Lauds Obama’s Call for Fiscally Responsible Budget Law

WASHINGTON – Rep. George Miller (D-CA) today hailed President Obama’s proposal to reduce the federal budget deficit and make Washington more fiscally responsible. Miller joined the President at the White House where Mr. Obama announced he was sending to Congress a bill to require statutory Pay-as-You-Go budgeting for Congress.

Known as PAYGO, the rules prohibit Congress from increasing the deficit or decreasing a budget surplus to pay for new mandatory programs or tax cuts. Congress would be required to pay for the cost of tax cuts or mandatory spending increases only with other cuts or revenue increases. The rules would have the force of law.

“President Obama is not just talking the talk when it comes to being fiscally responsible; he is willing to hold himself and Congress accountable and I fully support his proposal,” said Miller, chairman of the House Education and Labor Committee and the Democratic Policy Committee.

Miller first introduced the idea of common-sense PAYGO budgeting in 1982, nearly 27 years ago. On November 16, 1983, Miller reintroduced a comprehensive PAYGO budget strategy which subsequently passed the House in April 1984.

“Pay-as-you-go budgeting means that we cannot simply pass off to future generations the costs of our decisions today,” Miller said. “It is a principle Americans understand and respect. Families across the country are struggling to make ends meet, to live within their means, and to invest in their children and in their own retirement. PAYGO focuses Congress’ attention and requires very difficult but important decisions about national priorities,” Miller added. “PAYGO is responsible, fair, and critical to meeting our goals of strengthening the economy, reforming health care, modernizing energy policy and making college more affordable.

“After eight years of Bush tax cuts we could not afford and that were never paid for, I applaud President Obama for introducing PAYGO legislation and I look forward to helping him enact it.”

In 1990, eight years after Miller’s bill was first introduced, a Democratically-controlled Congress and President George H.W. Bush enacted a legally binding pay-as-you-go budget plan. During President Clinton’s two terms, PAYGO budgeting is credited with reigning in record high budget deficits inherited from the Reagan-Bush presidencies and achieving a budget surplus for the first time in a quarter century. But in 2002, under a Republican Congress and Republican President, the rules were allowed to expire. While in office, President Bush turned a $5.6 trillion projected budget surplus he inherited into a $5.8 trillion projected budget shortfall – a staggering swing of $11.4 trillion.

House and Senate Democrats adopted PAYGO rules in 2007 after regaining control of Congress, but the rules can be waived by majority vote. President Obama’s proposal would make PAYGO the law, forcing both the House and the Senate to agree on offsets for additional mandatory dollars spent or taxes cut. The President would be obligated to reduce spending if Congress failed to meet PAYGO rules.

FOR THE RECORD: Excerpts from Rep. George Miller’s statement regarding the introduction of H. J. Res. 427, to require Pay-As-You-Go budgeting, November 16, 1983:

“So let us try a new approach, an honest approach, one that tells the American people how things really are, not how we think they would like them to be. The American people do not expect miracles from their elected leaders, but they do expect the truth, and we have been deceiving them…

“Pay-as-you-go is simple, but it is not easy. It will require that we in the Congress tell our constituents the real cost of running this Government. And it will require that our constituents be willing to pay for the quality of life that that we enjoy in this country. It will hopefully also expose the waste and the largesse which inflate our budget and swell our deficits…”

# # #

budget economy

Posted by Peake, Amy at 07:13PM | | Comments () | TrackBack (0)

Rep. Miller, an Early Champion of PAYGO Budgeting, Lauds Obama’s Call for Fiscally Responsible Budget Law

WASHINGTON – Rep. George Miller (D-CA) today hailed President Obama’s proposal to reduce the federal budget deficit and make Washington more fiscally responsible. Miller joined the President at the White House where Mr. Obama announced he was sending to Congress a bill to require statutory Pay-as-You-Go budgeting for Congress. Known as PAYGO, the rules prohibit Congress from increasing the deficit or decreasing a budget surplus to pay for new mandatory programs or tax cuts. Congress would be required to pay for the cost of tax cuts or mandatory spending increases only with other cuts or revenue increases. The rules would have the force of law. “President Obama is not just talking the talk when it comes to being fiscally responsible; he is willing to hold himself and Congress accountable and I fully support his proposal,” said Miller, chairman of the House Education and Labor Committee and the Democratic Policy Committee. Miller first introduced the idea of common-sense PAYGO budgeting in 1982, nearly 27 years ago. On November 16, 1983, Miller reintroduced a comprehensive PAYGO budget strategy which subsequently passed the House in April 1984. “Pay-as-you-go budgeting means that we cannot simply pass off to future generations the costs of our decisions today,” Miller said. “It is a principle Americans understand and respect. Families across the country are struggling to make ends meet, to live within their means, and to invest in their children and in their own retirement. PAYGO focuses Congress’ attention and requires very difficult but important decisions about national priorities,” Miller added. “PAYGO is responsible, fair, and critical to meeting our goals of strengthening the economy, reforming health care, modernizing energy policy and making college more affordable. “After eight years of Bush tax cuts we could not afford and that were never paid for, I applaud President Obama for introducing PAYGO legislation and I look forward to helping him enact it.” In 1990, eight years after Miller’s bill was first introduced, a Democratically-controlled Congress and President George H.W. Bush enacted a legally binding pay-as-you-go budget plan. During President Clinton’s two terms, PAYGO budgeting is credited with reigning in record high budget deficits inherited from the Reagan-Bush presidencies and achieving a budget surplus for the first time in a quarter century. But in 2002, under a Republican Congress and Republican President, the rules were allowed to expire. While in office, President Bush turned a $5.6 trillion projected budget surplus he inherited into a $5.8 trillion projected budget shortfall – a staggering swing of $11.4 trillion. House and Senate Democrats adopted PAYGO rules in 2007 after regaining control of Congress, but the rules can be waived by majority vote. President Obama’s proposal would make PAYGO the law, forcing both the House and the Senate to agree on offsets for additional mandatory dollars spent or taxes cut. The President would be obligated to reduce spending if Congress failed to meet PAYGO rules. FOR THE RECORD: Excerpts from Rep. George Miller’s statement regarding the introduction of H. J. Res. 427, to require Pay-As-You-Go budgeting, November 16, 1983: “So let us try a new approach, an honest approach, one that tells the American people how things really are, not how we think they would like them to be. The American people do not expect miracles from their elected leaders, but they do expect the truth, and we have been deceiving them… “The resolution which I am introducing today commits the Congress and the President to a budget process which is fair and honest, a process which requires us to choose our spending priorities and accept the responsibility of paying for them, instead of passing the cost along to our children. “That process is the pay-as-you-go budget plan, a plan which would control spending and reduce our deficits by tearing up the national credit card. “A year and a half ago, when we were debating the 1983 budget resolution, I offered the pay-as-you-go budget proposal to the House. According to the Congressional Budget Office, had we adopted my proposal in May of 1982 we could have balanced the Federal budget by 1985. Instead, according to this year’s budget resolution, we will in all likelihood find ourselves with a budget deficit in excess of $175 billion by that date… “Pay-as-you-go is simple, but it is not easy. It will require that we in the Congress tell our constituents the real cost of running this Government. And it will require that our constituents be willing to pay for the quality of life that that we enjoy in this country. It will hopefully also expose the waste and the largesse which inflate our budget and swell our deficits…” # # #

« Miller to Join Obama at PAYGO announcement | Main | PAYGO Legislation introduced in House »