Rep. Perlmutter Statement On Passage Of PAYGO Legislation

Statement

Today, the House passed and U.S. Rep. Ed Perlmutter supported H.J.Res. 45, the Statutory Pay-As-You-Go Act 2009, by a vote of 233 to187. This bill requires Congress to offset the costs of tax cuts or increases in entitlement spending with savings elsewhere in the budget, except for a few items extending current law and emergency spending. The bill now goes to President Obama to be signed into law.

"I'm proud the House is sending this important bill to the President's desk. Washington must begin to rein in spending and reduce the federal debt. Hard working families in my district are tightening their belts and Congress must do the same. This bill ensures we're not stealing money from our children's piggy bank to pay for tax cuts for the richest Americans. Without bringing down the debt, we won't be able to continue our long term investments in job creation, education, energy independence and vital infrastructure. I urge the President to quickly sign this bill into law," stated U.S. Rep. Ed Perlmutter.

The Statutory Pay-As-You-Go Act 2009 - requires Congress to offset all new policies that reduce revenues or expand entitlement spending over five and ten years. If the net effect of all new tax and entitlement legislation enacted during a session of Congress increased the deficit, there would be an automatic across-the-board cut in certain mandatory programs. Additionally, there is a history of bipartisan support for PAYGO: it was enacted by a Republican President and Democratic Congress in 1990, extended by a Democratic President and Republican Congress in 1998, and won 24 Republican votes when the House of Representatives passed it last July.

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