Sunday, April 26, 2009

Obama Calls for Return of 'PAYGO' Rule


From Foxnews.com

President Obama is looking to the past to help reduce growing federal budget deficits threatening the country's future.

In his weekly radio and Internet address Saturday, Obama called on Congress to pass a pay-as-you-go legislation, known as PAYGO, that would require new federal spending to be offset by budgetary cuts or tax hikes.

"We need to adhere to the basic principle that new tax or entitlement policies should be paid for," he said, asserting that PAYGO "helped transform large deficits into surpluses in the 1990s. Now we must restore that sense of fiscal discipline."

Fiscally conservative Democratic lawmakers, known as Blue Dogs, told Obama on Friday that they're working on a PAYGO plan and that they prefer to offset new spending with spending cuts elsewhere. Rep. Baron Hill of Indiana will introduce legislation next week, a Democratic aide told FOXNews.com

The federal deficit is projected to hit a record high of more than $1.8 trillion this year, due in large part to the government providing aid to Wall Street firms and other struggling companies, as well as Obama's $787 stimulus package. Pay-as-you-go legislation wouldn't affect that spending.

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