Fiscal Responsibility

Democrats have led the fight to restore fiscal responsibility after President Bush and Congressional Republicans left behind deep deficits.  The Republican record of fiscal recklessness turned surpluses into massive deficits by borrowing trillions of dollars to finance two wars, huge tax cuts for the wealthy, and major increases in spending.  The deficits and debt facing our nation are a serious "structural" problem, meaning they are built into our budget and will require tough choices in the years ahead. As Democrats work first to help the economy recover and create jobs, we are also working to put our country back on a path to a balanced budget over the long-term. 

Under Democratic leadership, “pay-as-you-go” – a proven tool used to bring down the debt and create surpluses in the 1990s – has been restored into law.  This law works to prevent deficits by ensuring Congress pays for what it buys, with any new spending increase or revenue reduction offset by spending cuts elsewhere or increased revenues.  Just like every family across this country has to balance their checkbook, Congress must make the tough choices necessary and set priorities.

As we work to restore balance, every part of our budget must be scrutinized for savings. As part of that effort, we have passed bipartisan legislation to reform defense spending to eliminate waste without compromising the military’s effectiveness.  This will ensure our troops have the support they need while saving taxpayers billions of dollars.  Democrats will continue to examine the defense budget for additional savings.

Democrats also supported the establishment of the bipartisan National Commission on Fiscal Responsibility and Reform, which has been asked to put forward bipartisan solutions to balance the budget by 2015 and set a long-term path for a sustainable fiscal outlook.