Congressman Garamendi Supports PAYGO to Help Bring Clinton-Era Growth Back to America
WALNUT CREEK, CA – Congressman John Garamendi (D-Walnut Creek), who served as President Clinton’s Deputy Interior Secretary, today issued the following statement after voting for PAYGO yesterday, a principle that compels Congress to pay for investments made.
"When I served under President Clinton, we presided over a remarkable era of economic growth and job creation by paying for sound investments and important research. We turned huge deficits into a $5.6 trillion projected surplus," Congressman Garamendi said. "Unfortunately, President Bush decided we could have our cake, add layers of an unfunded war in Iraq and tax breaks for the rich, and eat it too."
"To fix an economy broken by one of the most reckless presidencies in American history, Congress adopted the lessons of the Great Depression and passed jobs bills that helped stabilize an economy in freefall. With PAYGO, we continue to use what has worked in our history and will lay the groundwork for a responsible growth-focused economy," Garamendi added.
In the 1990s, the Clinton Administration turned deficits into record surpluses due in part by adhering to PAYGO, a principle that compels Congress to pay for what we buy. However, under a Republican President and Congress, PAYGO was waived and allowed to expire, clearing the way for policies that wiped out those surpluses.
The following legislation added to the deficit when it was passed after Republicans allowed PAYGO to expire:
- The Jobs Growth and Tax Relief Reconciliation Act (2003) – added $306 billion to the deficit over the last decade.
- The Medicare Modernization Act (2003) – added $218 billion to the deficit over the last decade.
The following legislation was subject to PAYGO, but Republicans ignored the spirit of the law and effectively waived PAYGO by directing OMB to ignore the costs of the legislation in enforcing PAYGO:
- The Economic Growth and Tax Relief Reconciliation Act (2001) – added $1.219 trillion to the deficit over the last decade.
- The Defense Appropriations Act (2002) – cost $130.279 billion over two years.
- The Job Creation and Worker Assistance Act (2002) – cost $88.723 billion over five years.
- The Farm Security and Rural Investment Act (2002) – cost $12.579 billion over two years.
- The Spectrum Auction Reform Act (2002) – cost $2.150 billion over two years.
- The Trade Act (2002) – cost $1.635 billion for over two years.
- The Consolidated Appropriations Act (2001) – cost $49.463 billion over five years.