KAGEN CO-SPONSORS PAY-AS-YOU-GO ACT ; URGES U.S. SENATE TO MAKE FISCAL RESPONSIBILITY A PRIORITY
Congressman Steve Kagen, M.D. was a co-sponsor of the Statutory Pay-As-You-Go Act in 2009, which requires Congress to find a way to pay for legislation - by either raising revenues or cutting back on other federal programs.
Dr. Kagen is calling on his Senate colleagues to act swiftly to pass this common-sense measure.
“Congress must live within its means just as we do in our own homes in Wisconsin,” Dr. Kagen said. “Passage of this legislation is long overdue and it is a critical step to prevent deficits from growing any larger.”
Statutory Pay-As-You-Go Act requires Congress to offset the costs of tax cuts or increases in entitlement spending with savings elsewhere in the budget. The bill that has been passed by the House, and the bill currently before the Senate are similar to the statutory PAYGO law that was in place in the 1990’s. The PAYGO law helped turn massive deficits into record surpluses. These rules were let expire by Congress in 2002. This marked the beginning of the dramatic turnaround from a projected surplus of $5.6 trillion to projected deficits of more than $11 trillion.
“I am pleased to see the Senate is moving forward with this essential investment in our future. It is impossible for us to invest in priorities such as health care, education and energy independence unless we also reduce the deficit. As we take bold actions to rebuild our economy, we must also remain fiscally responsible as we build a stronger, better future for us all.”
Under the PAYGO bill, Congress must pay for the costs of tax cuts or increases in entitlement spending with savings elsewhere in the budget. There is an exceptions clause for situations deemed an emergency.
If the net effect of all legislation enacted during a session of Congress increased the deficit, there would be a required, 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.
