Shots of Common Sense
The PAYGO Fraud
Battered by the reality that their policies are bankrupting the country, President Obama and Congressional Democrats are attempting to shield themselves from criticism behind a proposal to make “pay-as-you-go”, or PAYGO, the law of the land. The idea seems great on the surface, but the Democrat version of PAYGO is so riddled with loopholes and exemptions that it only continues the mockery of fiscal restraint this Congress has come to represent.
In fact, the Congressional Budget Office (CBO) recently analyzed this PAYGO sham, and reported that it could actually result in even higher deficits!
“…if the system envisioned in H.R. 2920 was used in place of the current Congressional rules or a more stringent statutory PAYGO system, the legislation’s enactment could lead to larger future deficits.” – CBO analysis, 7/14/09
Oops. That certainly doesn’t sound like the fiscally responsible measure the Democrats’ are trying to sell it as. How is such a thing possible? Loopholes, come get your loophopes.
For starters, the Democrats’ proposal excludes 40% of the federal budget by exempting all discretionary spending!
Many entitlement programs, such as Social Security and Medicaid benefits, are also exempt.
But that’s it, right? Nope.
Don’t forget veterans programs, low-income programs, interest on our debt, TARP spending,…
How far down did Democrat drill to protect programs from PAYGO? Exempted from PAYGO: Comptrollers general retirement system, Vaccine Injury Compensation Program Trust Fund, Tennessee Valley Authority Fund, Geothermal Resources Development Fund, National Credit Union Administration Emergency Fund, Western Area Power Administration, Bonneville Power Administration Fund, Canteen Service Revolving Fund, Compensation of the President, Host Nation Support Fund for Relocation, United Mine Workers of America 1992 Benefit Plan, Pensions for former Presidents, Voluntary Separation Incentive Fund, Check Forgery Insurance Fund, Natural Resource Damage Assessment Fund, and on, and on, and on, and on….
They are nothing if not thorough.
This isn’t about fiscal responsibility. It’s just a charade meant to distract Americans from the fact that deficit spending is off the charts, and the Democrats aren’t willing to make the tough choices required to fix it. If Democrats in Congress spent as much time on setting spending priorities as they do coming up with gimmicks, the nation’s finances would be in a much better place. Republicans are ready to offer real solutions to rein in spending. Only time will tell if Democrats will join us, or just snuggle up to their sham PAYGO comfort blanket once again.