Entry in progress—B.P.
CBS News - Political Hotsheet
September 30, 2010 3:27 PM
Boehner Proposes “CutGo” to Counter Dems’ “Pay Go”
Posted by Stephanie Condon
House Republican Leader John Boehner today suggested a series of congressional reforms, including a “CutGo” rule to match the Democrats’ “pay go” rule.
So while Democrats have instituted “pay go” rules to ensure that every new spending measure is paid for, Boehner call for “cut as you go” rules.
“Under this ‘CutGO’ rule, if it is your intention to create a new government program, you must also terminate or reduce spending on an existing government program of equal or greater size - in the very same bill,” he said.
‘CutGo?’ Where Were You?
September 30th, 2010 by Speaker’s Press Shop
Today, in the name of fiscal responsibility, House Republican Leader John Boehner offer a proposal he called “CutGo”—a rule to end existing government programs and spending items when creating new ones.
By Steve Benen
December 28, 2010
GET TO KNOW ‘CUTGO’.... The “pay as you go” budget policy—aka “Paygo”—was a basic and effective approach. In a nutshell, if policymakers want to increase spending or cut taxes, they have to figure out a way to pay for it. The point is to prevent increases to the deficit by telling officials to “pay as you go.” It helped Clinton eliminate the deficit altogether and deliver some of the largest surpluses ever.
Under Paygo, new spending had to be paid for. Under Cutgo, new spending necessarily has to be offset by cuts to existing spending. That may not sound especially outrageous, but it clears the way for Republicans to keep cutting taxes—which would fall outside Cutgo restrictions—to their hearts’ content, raising the deficit in the process.
It also deliberately shifts the focus. New spending can’t be offset by, say, closing tax loopholes or creating new sources of revenue. Congress would have to offset the costs by cutting spending.
New York City • Government/Law/Politics/Military • (0) Comments • Wednesday, December 29, 2010 • Permalink