Blue Dog Coalition
Madam Speaker, I rise this evening to discuss the importance of this pay-as-you-go system that my colleague from Arkansas, Congressman Ross, and my other colleagues have spoken on thus far. What you're going to hear this evening across the…
Madam Speaker, I rise this evening to discuss the importance of this pay-as-you-go system that my colleague from Arkansas, Congressman Ross, and my other colleagues have spoken on thus far.
What you're going to hear this evening across the breadth and width of Representatives from throughout the country is a common and reoccurring theme, and that is, as Blue Dogs, we believe that putting our fiscal House in order is among the highest of priorities that we are sent here back to Washington to do. And so, therefore, it is a very important discussion that we are having with you this evening, as many Americans sit at their home having dinner and wondering just really what's going on in Washington.
What's going on is really trying to draw a line in the sand. Are we about trying to establish and stay with fiscal responsibility or not?
Now, PAYGO is a tool, as was mentioned, to try to ensure that any additional expenditures of our Federal budget be paid for. That's not the only tool, but it is one of the few tools that we now have in place. Certainly as Blue Dog members, we are looking and trying to figure out how we can do other efforts to focus on budget cutting and reestablishing our priorities. But right now pay-as-you-go is the most important tool that we have available to us.
Now, let me give you a little history of how all this took place. In 1990, when the Budget Enforcement Act was passed, there was an attempt to reign in deficits that had occurred for over 30 years, Federal deficits that had been
experienced since 1970. This Act, passed by a Democratic Congress in 1990 and signed by a Republican President, President George Bush the First, sought to control the budgetary impact of legislation through the enforcement of the provisions that we now refer to as pay-as-you- go.
Now, that was law and that was enforced for 10 years, about. Then in 2001, with a new Republican majority in Congress, our current President, President George Bush the Second, abandoned the PAYGO provisions.
And that, I think, among other factors took our projected budget surplus, then at $5.6 trillion over a 10-year period, and created the current budget deficit that we have today, which is over $2 trillion over that same time period. Yes, I think it's disappointing for all Americans that a sensible tax policy, an investment in smart growth in our country that was achieved between 1990 and 2001 on a bipartisan basis, has been squandered in the last 6 years to the large unsustainable deficit that we have today.
Now, where are we? Well, at the beginning of this year, the new Democratic majority returned to Congress a path of fiscal responsibility. As Congressman Ross and others mentioned, PAYGO was one of the first provisions we enacted. Under these rules we have in every piece of legislation that we have acted on this year enforced the PAYGO principle. This promise we made to the American people we intend to keep true to our word. We have already made great strides in bringing our fiscal house in order; but if we want to continue that, we must include this with all legislation, which includes the alternative minimum tax. It needs to comply with PAYGO.
Currently, our national debt is over $9 trillion, with much of it being held by foreign governments. In 2007, China alone had increased the holdings of U.S. Treasury securities by nearly 500 percent in the last 6 years, from $74 billion in July, 2001, to $408 billion in July of this year. Overall, and it has been said before, this administration has borrowed more money from foreign sources throughout the world than the previous 42 Presidents combined. Let me repeat that: overall, this administration has borrowed more money from foreign sources than all the previous 42 Presidents combined.
As a proud member of the Blue Dog Caucus, I strongly believe that fiscal responsibility and balanced budgets are essential to make our economy and our country strong and prosperous. Government should not be allowed to spend more than it takes in. Common sense tells us that. Any strategy of our Nation's budget must include a strategy for reducing these record deficits so that we don't pass them on to our children. Without adequate controls, prolonged deficit spending will weaken our ability to fund worthwhile domestic spending programs and jeopardize our national security. That's at the heart of this discussion.
I further believe that it's fiscally and morally irresponsible, therefore, to place the burden of today's deficit on our children and grandchildren. And that's why PAYGO is so important, that we draw the line and make this fight this week.
The alternative minimum tax is important. We passed that relief on that over a week ago. But it's not worth borrowing from China to pay for the alternative minimum tax. We can do this in a commonsense way, and that's what the Blue Dogs are asking you to support our efforts in.