Issue # 2 Spending What We Can Afford

  Every year, the President and Congress decide on a budget for the federal government. They decide where money will go. The President develops a budget, and then Congress takes over. No federal agency or program is allowed to operate without approval and funding from Congress. In 2007, Congress passed a pay as you go budgeting measure that they call paygo.It requires that any increases in entitlement spending or tax cuts have to be offset with spending reductions somewhere else. This prompted a debate on whether paygo was the right approach to take. Proponents say that paygo is necessary so that Congress understands that defits do matter and need to be continued. It responds to the citizens' fears about profligate spending and the national debt. They say it will hold Congress to the same level and standard that most business and families are already following. (spending only what can be afforded) This way Congress can easily raise most of the money needed to pay for new initiates with out creating more debt. If a recession or crisis takes place, paygo can be suspended. People who criticize paygo say it is the wrong approach to take. They believe paygo would result in tax hikes to pay for new programs which would not help. They think budget deficits should be elimated by economic groth, not painful budget cuts or tax increases. Some believe paygo will prevent Congress from being able to reduce the reach of the Alternative Minimum Tax. Others worry that Congress would be further restricted and unable to respond to national emergencies. Others believe the public wants Congress to be responsible, and that paygo would anger voters.

I believe that paygo isn't the best route to take. It would result in a ridiculous amount of raised taxes. These raised taxes would pay for programs that wouldn't help the problem anyway. It would restrict Congress' ability to help with national emergencies such as recessions and crises. Even if paygo was suspended, it still would cause some problems. Also, the best way for the deficit to shrink is by economic growth. All 40 republicans voted against the bill saying it would be an excuse for huge tax cutts. Minority leader Boehner called paygo a sham, and said it was a political cover for lawmakers when they make huge tax hikes to "pay for" increased amount of spending.



Other sites to check out:
War Dollars:
http://daniellescurrenteventblog.blogspot.com/2010/10/issue-1-war-dollars.html
Social Insecurity:
http://theresasocial.blogspot.com/2010/10/issue-3-social-insecurity.html