Congressional "Pay-As-You-Go" budgeting translates to perpetually bigger government
Originally published on December 21st by Human Events.
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| The New Seal of the Federal Government |
Want to ensure the growth of government? Forever?
The media does, and they have with Liberals devised the perfect way to do it. It is the "pay-as-you-go" Congressional budgeting rule -- Pay-Go. It requires every move that Congress makes be "budget neutral"; every new spending initiative must be paid for - no more deficit spending.
How could anyone, Conservatives especially, not be enraptured with such a concept?
It certainly intrigued everyone in Congress in 1990, for it was then that Pay-Go became law as a part of that year's Omnibus Budget Reconciliation Act. (It went away in 2002, only to be reinstated in January of this year.)
The problems with Pay-Go, however, became apparent immediately. It did nothing to reduce spending, and everything to prevent tax cuts. This went unreported by the press because it did not fit into their government growth is good narrative.
| Only in this press-induced haze can the federal government spend 1/5th of everything the nation creates and there be anyone calling it miserly. |
Before Pay-Go, "fiscal responsibility" meant limiting federal expenditure to what the government could reasonably afford. And in these good old days there were "spending hawks" in Congress, elected officials who actually kept a keen eye focused on ensuring that government never grew too big for its fiscal britches. One, the late Harry Byrd, Sr. of Virginia, was often seen on the Senate floor in objection to some expenditure, asking, "How shall we pay for this?"
Under Pay-Go, spending hawks slowly went the way of the dodo, to be replaced by "deficit hawks", a breed of bird the media prefers. These creatures are first and foremost concerned with the Congressional bottom line, and are far more willing to raise taxes than reduce spending to maintain it.
The press in unison praised these new "hawks", and lauded their spendthrift ways as the new definition of "fiscal responsibility."
Responsibility used to mean frugality; it now means tax hikes to pay for as much government as possible. Accordingly, you can be an Ear-Marxist and still be a "deficit hawk", so long as you raise taxes enough to foot the bills.
And despite replete examples throughout our history that reducing taxes actually increases the revenue Washington collects, under Pay-Go Congress can not decrease taxes a dollar here without raising taxes a dollar there or cutting spending a dollar somewhere -- "budget neutrality", remember?
Once caught in this media-laid trap, is it any wonder that from a $14 trillion economy, fueled by over 300 million Americans, 536 elected officials in the District of Columbia are able to take and spend $2.7 trillion (over 19%)? And those with any thought of reining this in are upbraided for it by the press?
For this is merely the tip of the Washington ice berg the media wishes to see. Only in this press-induced haze can the federal government spend 1/5th of everything the nation creates and there be anyone calling it miserly.
Yet the media are doing exactly that. They are never ones to see any government program go without ever more, each and every year. Only they can call a program's increase of a lesser percentage than that it had grown the previous year a "cut."
And so Pay-Go goes. Were it rightly defined by the press, the mess in Washington would by now be a great deal less.
—Seton Motley is Director of Communications for the Media Research Center and Contributing Editor for NewsBusters.org.





















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Comments Policy
Once again, the media
December 27, 2007 - 11:40 ET by Chris NormanOnce again, the media functions as the enabler of big government. They always ask how the GOP is going "to pay for tax cuts", but never ask the same regarding new government programs.
You're right, Chris. I
December 27, 2007 - 12:21 ET by motherbeltYou're right, Chris. I never understood what was meant by "paying for" tax cuts. They don't even wait to see what happens to revenues with the cut (they usually increase). They just assume lower taxes mean less revenue, and vice versa. They fail to realize that taxes cause people to change their behavior.
mb, I don't know if the
December 27, 2007 - 12:30 ET by Chris Normanmb, I don't know if the media is ignorant or disingenuous when it comes to how tax cuts work.
You keep your money, I'll keep mine...
December 27, 2007 - 12:55 ET by SyriusMB,
Explain why each time the feds cut, my costs go up? My State taxes have increased significantly with more increases on the way by the turn of the year. Gas prices have increased, cutting into my bottom line. You're correct in realizing taxes and hidden costs do cause people to change their behavior and not necessarily for the better or maybe something else is at play...
Possibly this "Pay as you go" proposal would have a huge effect on the war. or maybe...
Don't get me wrong...I think I'm getting it...by having the feds stop spending my taxes on a "bridge to nowhere" and letting my State keep its riches I'll be better off than some schmoe living in the backwaters of some other State. Cool, I'm with you on cutting more fed taxes and letting my State improve my quality of life. Thanks.
Syrius
state and federal taxes
December 27, 2007 - 13:25 ET by mvfreemanThe federal government doesn't take anything from the state governments.
http://www.ustreas.gov/education/fact-sheets/taxes/economics.shtml
http://www.ustreas.gov/education/fact-sheets/taxes/state-local.html
MV,
December 27, 2007 - 13:56 ET by SyriusMV,
You're correct. Remember, though, the feds move the taxes around by way of earmarks & pet projects for the lawmakers. If there is less money to spend through tax cuts, a reduction occurs in the amount given to a State for an earmark. A State may rely on a particular federal program to help defray some costs. If the federal program is cut, the State must raise taxes to meet the offset or reduce services to its residents. So, again, to reiterate- reduce my fed taxes so I can give more money to my State for a better quality of life for me. It's my money and I should be able to keep it in my State instead of yours.
Syrius
“Instead of building newer and larger weapons of mass
destruction, I think mankind should try to get more use out of the ones
we have”
I get your point.
December 27, 2007 - 15:00 ET by mvfreemanThe bottom line is that you and I are paying for the services one way or the other.
And sadly the reason a lot of pols of any stripe keep getting reelected is that they keep bringing home the federal bacon for their state or district.
I'm all for banning earmarks but I doubt it'll happen. The pols in washington are too busy greasing each others palms.
That's because what the fed
December 28, 2007 - 10:43 ET by misterbee241That's because what the fed govt does not take, the state and local govt want.
When Bush cut taxes, our illustrious governor of Virginia, Mark Warner, tried to get a tax increase through the General Assembly. He in so many words said the state could use what Bush gave back. The local governments did the same thing.
There is none so blind as they that won’t see. Jonathan Swift 1667-1745
The point you are making is...
December 28, 2007 - 11:27 ET by SyriusMBee,
Are you for it or against it? It wasn't too clear from
your post. Your community begins to prosper when the funds are kept in
your community. What happens when you start losing services you think
you deserve?
Syrius
“Instead of building newer and larger weapons of mass
destruction, I think mankind should try to get more use out of the ones
we have”
The media loves to redefine conservatism.
December 27, 2007 - 12:00 ET by Missouri ConservativeThey used to call Howard Dean a "fiscal hawk" because he balanced budgets in Vermont. Morons in the drive-by media: You can have a massive socialist government that is revenue neutral and has balanced budgets.
I am a proponent of balanced budgets, for sure, but true conservatives are not so much concerned with budget deficits as they are about limiting the size, scope, and role of government.
"women and minorities hardest hit"
Pay As You Go
December 27, 2007 - 12:16 ET by Lame CherryVoila, wonderful post Mr. Motley as you prove my point in Pay As You Go is PERFECT TO FIX THE LIBERAL MEDICAL PROBLEM IN AMERICA.
If one pays as one can afford, then prices will not rise, the profiteers will be forced out the money business and government will get out of it as votes will not be cast for it.
As you point out Congress is frozen in place, this policy should be used in the medical and schooling. If things stagnate too much then the next generation can work a solution, but at least they will be alive and have money to fix it instead of it being flushed now.
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