Bishop, Blue Dogs Laud PAYGO Passage
Washington, D.C. – Congressman Sanford D. Bishop, Jr. (GA-02) voted today with fellow Members of the fiscally conservative Democratic Blue Dog Coalition to send statutory “pay-as-you-go” (PAYGO) legislation to the president’s desk, a major step in the Blue Dog’s efforts to strengthen fiscal responsibility and bring the federal budget under control.
“With the Blue Dogs leading the way, the Congress is committed to addressing the country’s long-term fiscal challenges,” Bishop said. “The Blue Dogs have worked tirelessly over the years to require the federal government to spend within its means. Today our goal is nearly a reality. With the president’s signature, we will put an end to the out-of-control deficit spending that has led our country down such a fiscally disastrous path.”
The bill requires Congress to offset all new policies that reduce revenues or expand spending. If the net effect of all new tax and spending legislation enacted during a session of Congress increased the deficit, there would be an across-the-board spending cut to bring the budget back into balance.
In the 1990s, PAYGO laws turned deficits into record surpluses and created an economic boom. However, in 2002, PAYGO was waived and allowed to expire, clearing the way for policies that wiped out those surpluses.