General Leave Statement on H.R. 2920 -- Considered 7/22/2009 The Statutory Pay-As-You-Go Act of 2009
GENERAL LEAVE STATEMENT ON H.R. 2920--CONSIDERED 7/22/2009 THE STATUTORY PAY-AS-YOU-GO ACT OF 2009 -- (Extensions of Remarks - July 28, 2009)
BREAK IN TRANSCRIPT
Mr. PETERS. Mr. Speaker, I rise today as a proud co-sponsor of H.R. 2920, the Statutory Pay-As-You-Go Act of 2009. This important legislation will establish mandatory ``pay-as-you-go'' budget discipline, rein in deficit spending, and reduce the national debt.
This bill requires Congress to offset the cost of increases in most mandatory spending or tax cuts with savings elsewhere in the budget to avoid increasing the national budget deficit. If the net effect of legislation enacted during a session of Congress increases the deficit, there would be an across-the-board reduction in certain mandatory programs. This fiscally responsible legislation includes carefully crafted, necessary provisions allowing Congress to take emergency action exempt from PAYGO rules in response to extreme circumstances such as war, economic crises, or other emergencies.
Establishing a pay-as-you-go law is critical to restoring fiscal responsibility and balanced budgets to Washington. We need targeted, responsible investments to get our economy back on track, but Congress must be required to determine how it will pay for new proposals. Pay-as-you-go legislation will ensure that Congress determines how to pay for new initiatives by searching out and cutting waste throughout the budget.
In the 1990s, pay-as-you-go budget discipline was enshrined in law and it led to record budget surpluses. After PAYGO was originally codified in 1990, total federal spending as a percentage of GDP decreased each year from 1991 through 2000. After Congress let PAYGO expire in 2002, projected surpluses of $5.6 trillion were transformed into record deficits. Passing the Statutory Pay-As-You-Go Act of 2009 will require Congress to make the tough choices necessary to get unacceptably high budget deficits under control and avoid passing today's costs onto our children, grandchildren, and future generations.
I am proud to support the Statutory Pay-As-You-Go Act of 2009 because it is grounded in fiscal discipline and responsibility. Families make tough budget choices to live within their means, and the government should be forced to do the same thing. I urge passage of the Statutory Pay-As-You-Go Act of 2009.
BREAK IN TRANSCRIPT
Source