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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.