Democrats Create Another PAYGO Loophole
Last week, the House considered the supplemental and approved an amendment to increase direct spending by more than $66 billion. A portion of this higher spending was offset with $55 billion in tax increases. The net effect of the legislation approved by the House, when considering the impact on both direct spending and revenue, was to increase the deficit by $11 billion. This violates the Majority’s PAYGO rule and Representative Paul Ryan raised a point of order to that effect. The Chair ruled otherwise however, and in the process, created yet another loophole to the PAYGO rule. The Chair ruled that it could not determine that the legislation impacts direct spending—even though it plainly does and CBO scores $66 billion in entitlement spending in the bill—since this direct spending is attached to an appropriations bill. In other words, PAYGO imposes no limitation on direct spending that increases the deficit as long as it is attached to an appropriations bill. The bill also included more than $180 billion in non-offset higher discretionary spending, but PAYGO imposes no limit at all on discretionary spending that increases the deficit.
Posted by Brad Watson (05-22-2008, 02:22 PM) filed under Budget