• July 22, 2009

    McIntyre Votes To Restore Fiscal Discipline: Statutory PAYGO Bill Passes the U.S. House of Representatives

    Washington, D.C. - Today, U.S. Representative Mike McIntyre voted to restore fiscal discipline by putting the “pay-as-you-go” principle into law. 

    “Every American knows that our nation needs to confront the enormous deficits and debt we are facing,” said Rep. McIntyre.  “By passing statutory PAYGO today, the U.S. House has taken a necessary step to put us back on the path of fiscal restraint.  While this will not solve the problem on its own, it will prevent the hole from getting deeper. “

    The PAYGO bill that passed the House today is similar to the statutory PAYGO law that was in place in the 1990s, which helped turn massive deficits into record surpluses.  Those rules expired in 2002.

    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.