Joint Statement on the Need for Pay-As-You-Go Discipline
Publication Date: March 2007
Special Collection: John D. and Catherine T. MacArthur Foundation
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.