Obama’s Pay As You Go (PAYGO) Law..What?!
President Barack Obama, during his address this morning, says that he is backing the PAYGO law or the Pay As You Go Law.
This law compels new spending or tax changes to not add to the federal deficit. New proposals must either be “budget neutral” or offset with savings derived from existing funds. The goal of this is to require those in control of the budget to engage in the diligence of prioritizing expenses and exercising fiscal restraint.
“If we do not take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery,” Obama said in his annual State of the Union address to the U.S. Congress and American people.
RECORD DEFICIT IN 2009
The United States had a record deficit of $1.4 trillion in 2009, or almost 10 percent of gross domestic product, and the nonpartisan Congressional Budget Office forecasts that this will edge down to a still-lofty $1.35 trillion in 2010.
Proposing a three-year freeze on some domestic spending programs to save $20 billion in fiscal 2011, Obama also said he would end tax cuts for oil companies, investment fund managers and wealthier Americans making more than $250,000 a year.
“…In the 1990s, statutory paygo encouraged the tough choices that helped to move the government from large deficits to surpluses, and the President believes it can do the same today. Statutory paygo would hold the government to a simple but bedrock principle: Congress can only spend a dollar if it saves a dollar elsewhere….
..What Do You Think?
Tags: idaho credit repair, bad credit repair report, credit repair advice
