The Pay-As-You-Go Act passed the House with a vote of 265-166.
“This is a good first step in returning our federal government to fiscal responsibility,” Kissell said. “Families must operate under the idea that you can’t spend money you don’t have, and our government must accept that same philosophy."
In 2002, the original legislation expired and was not renewed.
The bill requires all new polices reducing revenues or expanding entitlement spending be offset over five and 10 years. It forces serious examination of spending in the budget and tax loopholes which can be eliminated to offset more important programs.
"As we move forward and our economy begins to recovery, we need to make sure that fiscal responsibility and deficit reduction are part of our national economic strategy," Kissell said.
The legislation requires across-the-board cuts in certain mandatory programs if the net effect of all new tax and entitlement bills enacted during a Congressional session increases the deficit. Some mandatory programs would be exempt from the cuts including Social Security, Medicaid, Food Stamps, Veterans programs and other programs targeted toward low-income families.
The bill does not apply to emergency legislation and discretionary spending through the appropriations process.






