PAYGO Legislation introduced in House
Rep. Miller, House Colleagues Introduce PAYGO Legislation for President Obama and All Americans
Miller Joins Majority Leader Hoyer and OMB Director Osrzag at Capitol Hill News Conference
WASHINGTON – Rep. George Miller (D-CA) today joined House Majority Leader Steny Hoyer and OMB Director Peter Orszag to introduce President Obama’s proposal to enact Pay-As-You-Go budgeting, a central part of the President’s plan for fiscal responsibility.
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. Once passed by Congress and signed by the President, the rules would have the force of law.
“I am proud to join my colleagues today to introduce legislation on behalf of President Obama and all hard working Americans to help bring our fiscal house in order,” said Miller, who first proposed PAYGO rules 27 years ago. “Pay-As-You-Go budgeting will force the Congress and the President, whether Democratic or Republican, to make tough choices about our nation’s priorities and how we will afford them. Liberal and conservatives alike are embracing this plan because it will make our nation stronger.”
Miller, who chairs the House Education and Labor Committee and the Democratic Policy Committee, joined the President at the White House last week when Mr. Obama first announced he was sending Congress a bill to require statutory PAYGO budgeting.
“We cannot pass off to future generations the costs of our decisions today – including the decisions we make about reforming our health care system or other top priorities,” added Miller. “Fixing the current health care system that bankrupts families and leaves too many uninsured is critical. Using PAYGO rules will help us prioritize and make smart decisions about creating a health care system that works for our families today and in the future.”
Miller introduced the idea of common-sense PAYGO budgeting in 1982, nearly 27 years ago. In 1983, Miller reintroduced a comprehensive PAYGO budget strategy that was approved by the House in April 1984.
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 reining in the record high Reagan budget deficits 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 George W. 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.
The statuary PAYGO legislation introduced today has already gained the support of a wide cross section of the Democratic Caucus including Majority Leader Hoyer, Budget Committee Chair Rep. John Spratt, Blue Dog Policy Chair Rep. Baron Hill, Rep. Peter Welch, Rep. Allen Boyd, and Rep. Bobby Scott. The bill being introduced today has more 152 co-sponsors.
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