U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

79–011 2009

111th Congress, 1st Session – – – – – – – – – – – – – House Document 111–46 

THE ‘‘STATUTORY PAY-AS-YOU-GO ACT OF 2009’’ 

LEGISLATIVE PROPOSAL 

COMMUNICATION 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

THE LEGISLATIVE PROPOSAL ENTITLED, ‘‘STATUTORY PAY-AS-YOUGO ACT OF 2009,’’ OR ‘‘PAYGO,’’ TOGETHER WITH A SECTIONAL 

ANALYSIS 

JUNE 10, 2009.—Referred to the Committee on the Budget and ordered 

to be printed 


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To the Congress of the United States: 

Today I am pleased to submit to the Congress the enclosed legislative proposal, the ‘‘Statutory Pay-As-You-Go Act of 2009,’’ or 

‘‘PAYGO,’’ together with a sectional analysis. 

The deficits that my Administration inherited reflect not only a 

severe economic downturn but also years of failing to pay for new 

policies—including large tax cuts that disproportionately benefited 

the affluent. This failure of fiscal discipline contributed to transforming surpluses projected at the beginning of this decade into 

trillions of dollars in deficits. I am committed to returning our Government to a path of fiscal discipline, and PAYGO represents a key 

step back to the path of shared responsibility. 

PAYGO would hold us to a simple but important principle: we 

should pay for new tax or entitlement legislation. Creating a new 

non-emergency tax cut or entitlement expansion would require offsetting revenue increases or spending reductions. 

In the 1990s, statutory PAYGO encouraged the tough choices 

that helped to move the Government from large deficits to surpluses, and I believe it can do the same today. Both houses of Congress have already taken an important step toward righting our 

fiscal course by adopting congressional rules incorporating the 

PAYGO principle. But we can strengthen enforcement and redouble 

our commitment by enacting PAYGO into law. 

Both the Budget I have proposed and the Budget Resolution approved by the Congress would cut the deficit in half by the end of 

my first term, while laying a new foundation for sustained and 

widely shared economic growth through key investments in health, 

education, and clean energy. Enacting statutory PAYGO would 

complement these efforts and represent an important step toward 

strengthening our budget process, cutting deficits, and reducing national debt. Ultimately, however, we will have to do even more to 

restore fiscal sustainability. 

I urge the prompt and favorable consideration of this proposal. 

BARACK OBAMA. 

THE WHITE HOUSE, June 9, 2009. 


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