Rep. Paul Tonko (NY-21) voted today in favor of the statutory PAYGO bill, which passed the House of Representatives by a vote of 265-166.
“This legislation is very simple: Congress can only spend a dollar in one place if it saves it in another,” said Rep. Tonko. “Just as families cut back on eating at a restaurant to pay for a new amenity, Congress must make difficult balancing decisions. We need to confront the enormous deficits we’re facing, bring an end to years of fiscal irresponsibility, and put this country back on a fiscally sustainable path.”
The PAYGO bill that passed the House today is similar to the statutory PAYGO law that was put in place in the 1990’s, which helped turn massive deficits into record surpluses. The Republican-controlled Congress let these rules expire in 2002, and the result was projected deficits of more than $11 trillion.
Rep. Tonko added: “We must balance short-term deficit spending for the economic recovery with a commitment to restoring fiscal discipline in the long-term. The large deficits that we inherited from the previous administration as a result of the reckless borrow-and-spend policies have put pressure on funding for our important priorities, such as health care reform, clean energy and education. PAYGO will be a powerful impediment to reckless tax cuts financed by debt.”
The statutory PAYGO bill requires Congress to pay for the costs of tax cuts or increases in entitlement spending with savings elsewhere in the budget. Exceptions can be made if a situation is deemed an emergency, so that Congress is always able to respond quickly if necessary. There are consequences for not paying for legislation, which will ensure that this new law is adhered to: 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, known as a sequester. Programs that assist low-income Americans would be protected, as would Social Security, and the effect on Medicare would be limited.
Rep. Tonko spoke on the House floor Tuesday in support of the PAYGO bill.
