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How’s that PAYGO Rule Working Out?

Washington, Feb 1 -

In an attempt to give themselves political cover for raising the debt limit by $1.9 trillion, Democrats cut a deal to attach statutory PAYGO to the debt limit increase. PAYGO, of course, has been part of the rules of the House of Representatives since Nancy Pelosi became Speaker in January 2007. Ostensibly, this was going to rein in deficit spending. So, how’s that working out?



Great…if you like bigger deficits. The FY 2007 budget deficit (the last one under a Republican Congress) was $161 billion. The FY 2008 budget deficit (the first under the Democrats’ PAYGO rule) was $459 billion. And it gets worse from there – a $1.4 trillion deficit in FY 2009 and a projected FY 2010 deficit of between $1.4 and $1.6 trillion depending on who you listen to.



That’s right folks. PAYGO, the budget rule that was supposed to give Democrats credibility on the deficit issue, hasn’t done a thing to stop them from enacting the three largest budget deficits in history. Democrats just waive their hallowed PAYGO requirements every time they want to pass something expensive.



But statutory PAYGO will be different, right? Wrong. It’s absolutely riddled with loopholes and exemptions. Discretionary spending? Not included. That’s 40 percent of the budget right there. Exploding existing entitlements? Not included. The list goes on and on…



PAYGO isn’t the answer to the serious problem of skyrocketing deficits and debt. It’s just a sham. If Democrats were truly serious about responsible budgeting, they would make the tough choice and vote for a balanced budget. At this point, it really is that simple.