[Congressional Record Volume 155, Number 113 (Friday, July 24, 2009)]
[Extensions of Remarks]
[Page E1936]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  STATUTORY PAY-AS-YOU-GO ACT OF 2009

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                               speech of

                           HON. BOB ETHERIDGE

                           of north carolina

                    in the house of representatives

                        Wednesday, July 22, 2009

  Mr. ETHERIDGE. Thank, you Mr. Speaker, and thank you, Chairman 
Spratt, for introducing this critical bill. As a Member of the House 
Budget Committee, I rise in support of H.R. 2920, the Statutory Pay-As-
You-Go Act of 2009. This vote is one of the most important actions 
Congress can take towards ensuring fiscal discipline and restoring a 
balanced federal budget.
  Our nation faces great challenges in our efforts to get our economy 
back on track. As we take steps in Congress to address short-term 
economic problems, we need to do so with an eye on the long-term impact 
of our decisions. As a former business owner, I know the importance of 
keeping your books balanced and your budget in order. You can't run a 
successful business by spending more money than you have and running up 
huge deficits. Careful budgeting often means making tough choices. But 
oftentimes the tough choices are the necessary ones. I remember the 
1990s, when we turned large deficits into budget surpluses through a 
disciplined commitment to balancing the budget.
  H.R. 2920 requires Congress to pay for any new policy that reduces 
revenues or expands spending. Under this bill, if the net effect of all 
new tax and entitlement legislation enacted during a session of 
Congress resulted in an increase to the deficit, there would have to be 
a corresponding cut in Federal spending. However, this balanced 
proposal protects our most vulnerable citizens by preventing cuts in 
certain designated initiatives like Social Security, Medicaid, and 
school nutrition funding. H.R. 2920 also represents a realistic 
approach that would make an exception for emergency spending and 
several current policies including Medicare physician payments, the 
Alternative Minimum Tax, middle class tax cuts, and the current estate 
tax exemption.
  While we have heard a lot of rhetoric from our colleagues on the 
other side of the aisle about fiscal responsibility, all that they 
offer is ``more of the same.'' In 2002, the Republican-controlled 
Congress allowed PAYGO rules to expire, which took us from a projected 
surplus of $5.6 trillion to projected deficits of more than $11 
trillion. Their substitute amendment would have replaced PAYGO with 
discretionary spending limits and deficit targets. Targets are not 
enough, and have failed us in the past. We need statutory and automatic 
requirements to comply with PAYGO. The Republican proposal also 
exempted tax cuts from complying with PAYGO, which is part of how we 
ended up in the current economic crisis. More of the same will not 
solve our economic problems.
  I cosponsored the Statutory Pay-As-You-Go Act because it is a crucial 
step towards returning to fiscal discipline, just as I have worked on 
the budget committee to pass responsible, disciplined spending plans. 
This commitment goes back to my first term in Congress, when I crossed 
party lines to support the Balanced Budget Act of 1997. We need 
discipline now in order to make sure we can afford our most important 
priorities for future generations down the road. Mr. Speaker, I urge my 
colleagues on both sides of the aisle to commit to budget discipline 
and vote in favor of H.R. 2920.

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