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News Reports Ridicule Obama Paygo Talk

The office of the House Republican Leader John Boehner has rounded up a handy compendium of some of the media’s reaction to Mr. Obama’s preposterous ‘Paygo Speech’:

News Reports Ridicule Democrats’ Promises of Paygo "Fiscal Discipline"

GOP Offers Spending Caps to Impose Real Fiscal Discipline, While Even Democrats Admit White House Plan Undercut by Loopholes

Washington, Jun 10 – The day after it promised to spend “stimulus” taxpayer dollars more quickly the White House made a big show of its promises on “fiscal discipline” – but news reports rightly noted that the Administration has shown a bigger commitment to massive spending and borrowing than fiscal austerity…  

    * Associated Press: “President Barack Obama on Tuesday proposed budget rules that would allow Congress to borrow tens of billions of dollars and put the nation deeper in debt to jump-start the administration’s emerging health care overhaul. The “pay-as-you-go” budget formula plan is significantly weaker than a proposal Obama issued with little fanfare last month.  It would carve out about $2.5 trillion worth of exemptions for Obama’s priorities over the next decade. His health care reform plan also would get a green light to run big deficits in its early years. But over a decade, Congress would have to come up with money to cover those early year deficits.” – (“Obama: It’s OK to Borrow to Pay for Health Care,” June 9, 2009)

    * Wall Street Journal: “President Barack Obama on Tuesday called for legally binding measures to enforce government spending restraint, but his congressional allies—and his own actions—threatened to undermine his message of fiscal discipline. Mr. Obama proposed to give "pay-as-you-go" budgeting rules the force of law, which would require Congress to offset entitlement-spending increases and tax cuts, either with spending cuts or tax increases. But critics say the proposed rules are riddled with loopholes and would have little impact. House appropriators on Tuesday unveiled spending numbers for the coming fiscal year that push up domestic outlays by 10.4%, after lawmakers used gimmicks to get around the pay-as-you-go rules Mr. Obama is embracing.  ‘This is like quitting drinking, but making an exception for beer and hard liquor,’ said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a nonpartisan watchdog group.” – (“Democrats Mix Signals on Deficit,” June 10, 2009)

    * Washington Post: President Obama called on Congress yesterday to enact pay-as-you-go budget rules to help tame a deficit forecast to top $1.8 trillion this year. But even as some Democrats applauded the plan, others complained that it would give a free pass to expensive policies that would sink the nation trillions of dollars deeper into the red over the next 10 years. … Coming one day after Obama vowed to shovel money from the economic stimulus package out the door even more quickly, yesterday’s call for fiscal rectitude also drew catcalls from Republicans.  ‘The president continues to display a frightening ability to say one thing, yet do the exact opposite,” said Rep. Tom Price (R-Ga.). ‘It’s frankly insulting that a president who is on a path to bankrupting our government would try to play the role of fiscal hawk.’” – (“Some Democrats Warn of Loophole in Obama’s Pay-As-You-Go Rules,” June 10, 2009)

    * New York Times: “During the first four months of his administration, President Obama has committed roughly $1 trillion in federal spending – a $787 billion economic recovery package, and $350 billion in money to bail out the nation’s banks. But on Tuesday, Mr. Obama was talking about saving money, not spending it. … But critics of Paygo say it is not simple at all. Brian Riedl, a budget analyst at the conservative-leaning Heritage Foundation, said the Paygo law required Congress to make across-the-board cuts in entitlement spending at the end of any year in which the Congressional Budget Office found that Paygo requirements had not been met. He said lawmakers responded each time by passing another bill, waiving the Paygo requirements.  ‘Paygo is a gimmick,’ Mr. Riedl said.” – (“One Day, Obama Pitches Stimulus Spending. The Next, He Urges Saving Money,” June 9, 2009)

    * ABC News: “But on Capitol Hill, Senate Budget Committee Chairman Ken Conrad, D-ND, cautioned that he has “serious concerns” about aspects of the administration’s proposal, which he found wanting.  PAYGO, he said, ‘can only do so much.  It can prevent the passage of new legislation that would worsen the deficit, but it does not address the deficits and debt projected under existing policy.  To truly solve our long-term budget crisis, I believe we need a special bipartisan process, where everything is on the table and where Congress is required to vote on a legislative solution.’  Conrad said that he’s concerned about the PAYGO exemptions, and highlighted that the administration’s PAYGO proposal differs from the House and Senate rules covering differing time periods and differ rules. Conrad said this would mean that Congressional committees would have to comply with two sets of estimates and procedures.” – (“President Obama, PAYGO, and the Deficit Hole,” June 9, 2009)

    * CBS News: “But briefing reporters, White House Budget Director Peter Orszag conceded some of PAYGO’s limitations. It doesn’t cover discretionary spending.  In addition, about 40 percent of the federal budget, programs for education, energy, the military, etc., would not be covered by PAYGO …  As for existing deficits and the National Debt, which today stands at an all-time high of $11.39 trillion, PAYGO has no effect, other than to slow its growth by restraining some government spending.” – (“Would PAYGO Really Limit Spending [sic],” June 9, 2009)

House Republicans have proposed a better solution. Boehner and GOP Whip Eric Cantor (R-VA) last week sent a proposal to President Obama outlining $375 billion in taxpayer savings over the next five years, including a plan to impose spending limits on non-defense discretionary spending.  A similar proposal was included in the House GOP budget alternative, which Budget Committee Ranking Republican Paul Ryan (R-WI) highlighted on CNBC this morning when he said “Spending caps is what works.  PAYGO is a charade”

Think how bad ‘Pay-Go’ must be for our one party media to feel obliged to note that it may have some er… flaws.

This article was posted by Steve on Wednesday, June 10th, 2009. Comments are currently closed.

5 Responses to “News Reports Ridicule Obama Paygo Talk”

  1. Liberals Demise says:

    Seems our wonderful watchdogs don’t want to die before seeing a Veterinarian of choice.

    “Here Fido ….Here boy!!”
    “Good boy …..Roll over!!”

  2. proreason says:

    defn: Paygo.

    Cynical lies proposed by evil and corrupt political con-men who pretend they will be fiscally responsible with taxpayer’s money when in fact they are scheming to do exactly the opposite and enrich themselves and their criminal cronies while the taxpayers descend into poverty.

  3. MinnesotaRush says:

    Amazing how a group of adults can become so dillusional and out of touch with reality for so long .. the MSM fools, the Congressional dingies, and this sickened batch of ineptness called o-blah-blah (and his gang).

    Their combined fantasy’s has doomed us.

  4. tranquil.night says:

    We’ve had Paygo from 1991-2002 and 2007- (the stimulus was under it) and it’s never been enforced. It’s just a cop-out Presidents turn to when they need unlimited spending without major public scrutiny. It’s nice to see this called out by an otherwise supportive media but it’s still all just smoke and mirrors. Either Babbles has a really big budget problem on his hands with China getting bullyish and he’s buying himself time for a revenue miracle, or he threw this out there because he wanted people to see how stupid it was and support him in whatever new ill-contrived ponzi he’s got concocting.

    Heritage with everything you need on Paygo.

  5. David says:

    Wow, this Obama sure is clever. I think I will start employing Obamanomics with my creditors. Let’s say I owe 11 trillion to a certain credit card company, as long as I promise to only buy what I can pay for from now on everything will be fine, right?

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