Joint Statement on the Need for Pay-As-You-Go Discipline


Publication Date: March 2007

Publisher: Concord Coalition (Washington, D.C.); Committee for a Responsible Federal Budget (U.S.); Committee for Economic Development; Center on Budget and Policy Priorities (Washington, D.C.)

Author(s):

Research Area: Banking and finance; Economics

Type: Report

Abstract:

The four organizations joining in this statement have warned that large, chronic budget deficits pose a threat to the economic health of our nation.  For that reason, we strongly support current efforts to reestablish and comply with pay-as-you-go discipline in the Congressional budget process, which would establish hurdles that make it more difficult to enact fiscally irresponsible policies.  This week the Senate is considering a budget resolution that would reinstate a pay-as-you-go rule in the Senate that would require any expansion  in mandatory programs  or any tax cut — including initiatives assumed in reserve funds — to be paid for with reductions in other mandatory spending or increases in other taxes.  Next week the House — which adopted a pay-as-you-go rule in January — will consider a budget resolution that also assumes all proposed initiatives will be paid for as required by the pay-as-you-go rule.  We urge support for these measures and opposition to efforts to amend the resolutions and undermine pay-as-you-go by allowing certain initiatives — popular program expansions or tax cuts — to be enacted without being offset.