PAYGO refers to a proposal by President Obama to make "pay-as-you-go" rules for federal spending into a law.
President Obama presented his proposal on June 9, 2009 and it now awaits Congressional approval. According to CNN, PAYGO would require Congress to "balance any increased spending by equal savings elsewhere."CNN: Obama proposes making 'pay-as-you-go' the law (June 9, 2009)
Exemptions-Loopholes in Proposal
- 2001/2003 President Bush tax cuts would be renewed
- The Alternative Minimum Tax (AMT)
- Updating doctors' Medicare payments
- Changing estate taxNewsweek: Obama's Pay-Go Flameout (June 10, 2009)
References
Fast Facts
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PAYGO
Pay-as-you-go
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Fact:
Would require Congress to "balance any increased spending by equal savings elsewhere"
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June 9, 2009
Proposed my President Barack Obama
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1990 - 2002
A law, known as "Paygo", that required "tax cuts or new entitlement spending be paid for through budget cuts or tax increases"
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President Obama described the principle behind his 2009 proposal as
“Congress can only spend a dollar if it saves a dollar elsewhere.”
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Fact:
Would not solve the federal deficit but might prevent it from increasing
