The White House is making moves to address the growing concern over the budget deficit but the results may be lukewarm.  The details of the program have yet to be announced but in an effort to display fiscal discipline, the Administration is likely to announce a set of budget control initiatives, such as pay-as-you-go (PAYGO).  With the honeymoon effect fading, poll numbers indicate that the American public is beginning to express concern over who will eventually foot the bill for all of the recently proposed federal spending.

These initiatives would limit future mandatory spending proposals unless offset by spending cuts in mandatory programs or tax increases.  PAYGO could have far-reaching effects, particularly in the current health-care debate, as legislators would need to find new ways to finance any new programs.  It is unclear if these budget controls would be implemented before a vote on health-care and Congress may end up paying for health-care anyway.

However, it also appears that the Administration plans to create some loopholes.  Lawmakers would be able to continue “current policies” such as extending the Bush tax cuts or increasing payments to Medicare doctors without finding a way to pay for them.  Given how the Bush tax cuts primarily benefitted wealthy Americans, a true PAYGO policy needs to treat all fiscal policy proposals the same in order to be effective.  While PAYGO would be one piece in a more serious effort at fiscal discipline, it would be irresponsible to create exceptions for the purpose of preserving political capital.

Giving "current policy" a pass allows legislators to skip tough decisions that Congress has ducked for far too long.  In fact, it is an example of the type of policy that got us into the budget quagmire that we face today.  If the Administration is serious about pushing for PAYGO, it needs to be applied uniformly instead of creating PAYGO with a costly asterisk.

WP: Obama Seeks Spending Rules Amid Public Concern About Deficit 

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