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Word of the Day: PAYGO

by Countable | 12.1.17

Why this word? Why today?

A short version of "pay-as-you-go", PAYGO is on many minds in light of the likely passage of the GOP tax reform bill. The tax cuts dictated by the bill are massive, and though they are based on the idea that tax cuts will spur economic growth, there are no guarantees.

PAYGO originates in the Budget Enforcement Act of 1990, and was updated in 2010.

If Congress does not act to waive the mandated cuts, a step that they have taken 16 times since the law was enacted, then Congress may be forced into sequestration. Sequestration applies across the board spending cuts throughout the federal government.

Given the projected increase to the deficit under the GOP plan ($1 trillion over 10 years), there would be as much as $100 billion in cuts required annually from Medicare, farm subsidies, student loans, support services for crime victims, and more.

If Congress waives the mandated cuts then the deficit will climb even higher. It topped $20 trillion for the first time this fall.

For more on the details and implications of PAYGO currently.

Tell us in the comments what you think, then use the Take Action button to tell your reps!

— Asha Sanaker

Countable

Written by Countable

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(22)
  • Donna
    12/01/2017
    ···

    The passage of this obscene bill will already cut services (healthcare, Medicaid, Medicare). Every credible economist agrees these cuts will NOT pay for themselves, so we can expect these social programs in the future. Besides the obvious issue I have with the government codifying this massive transfer of wealth from those who can least afford it to those who don't freaking need it, I want to know where all the money I have paid in payroll taxes for the last forty years has gone. Congress has not managed their resources effectively - through bigger staffs, higher wages, no oversight on military spending, etc. That does not give you the right - morally or legally - to penalize the working class of this country that has contributed to these funds. The wealthy should pay more taxes - they make more money. If you want to create a tax code that is simple and fair, I have a thought. All corporations should pay a flat 25% of gross profit, no deductions, no write-offs, no burying money offshore. Individuals should pay a flat 15% of income after payroll taxes (Medicare and Social Security) - no deductions, no write-offs. Now THAT is a tax return that will fit on a postcard. Your lobbyists and donors would hate it, but your constituents might actually respect you for the first time in decades.

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  • Sue
    12/01/2017
    ···

    You can not be that stupid Burr, Tillis, and Hudson to let this happen to the American people especially children who will be In Deep poop. You have sold us out and for what...$$. This ain’t going to get you in Heaven, but will get you out of office in 2018. Hope it makes you happy...

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  • BeStrong
    12/01/2017
    ···

    A couple of things...Stop calling Social Security an “Entitlement”! Those of us who have worked for our entire lives, and have had every paycheck decremented towards future social security benefits, wish to remind DC that this is our money, not yours! And as importantly, Medicare and CHIP is what we do to ensure access points for life saving and quality of life care. This type of legislation smacks of bias and partisan pandering. #Vote2018 #Vote2020. Vote

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  • Ticktock
    12/01/2017
    ···

    We have seen every Republican Administration since Reagan, including the Reagan Administration, provide tax cuts to the wealthiest tax payers under with the claim that the cuts would pay for themselves and improve the economy. When these same Republicans weren’t in power they claim to be deficit hawks pointing at the opposing party to be irresponsible spend thrifts. Yet here we are again with massive tax cuts for corporations and the wealthiest 1% while raising taxes on the rest of the citizens and cutting federal support to the most needy and unable to defend themselves. We continue to elect these people who have continue to serve themselves and pay their campaign fees while betraying those that elect them. What does this say about the US electorate? We can no longer claim to object to the Republican arrogance, we are part of this pattern.

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  • Gerald
    12/01/2017
    ···

    I guess the republicans can have a good laugh over Christmas complimenting themselves on being unified and strong. They robbed all of us to feed their donors and corporate pigs, and will now feel emboldened to take on domestic spending after the holidays. The deficit increase from this bill will be used to pretend we need to reform social security (70 years old, means testing), Medicare, etc. But for now, they can count their coins over Christmas in orgasmic delight and lecture us on the war on Christmas while obviously not understanding the first thing about the values of the person the holiday is about. May they one day try to go through the eye of the needle clutching their coins.

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  • gailnabity
    12/01/2017
    ···

    I am furious!! You cut out or reduced funding for every safety net program for the least of these. Now you want every additional funding to require an offsetting cut in another spending program. You might as well cut off our water, oxygen and food. Your place in history will be declared heinous for all but your wealthy buddies that populate the 1% who do not create jobs when their taxes are low nor trickle down anything to the 99% of us. Sick!! You’re place in hell is being prepared. Karma. I can’t wait to watch. The first consequence will be that you ( Burr, Tillis and Meadows) can’t get elected to any public office. Not local, statewide or in Congress. Not even dog catcher! Just desserts. We remember your names.

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  • RadicalModerate
    12/01/2017
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    John Katko,Tax cuts for businesses when the economy is already growing at an acceptable and safe rate will not grow the economy. But if us regular people who know what a paycheck is, had more money, that would grow the economy. So raise the minimum wage.

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  • Gus
    12/01/2017
    ···

    This is all part of their big plan. First they cut taxes and when that adds a trillion dollars to the deficit they then say the deficit is too big. We need to cut Medicare, social security and Medicaid. They will never be stop trying and succeeding at reducing and limiting benefits to people that paid for them. They won’t raise taxes once they’ve been cut because of the pledge to Grover Norquist to never raise taxes. This Republicans are playing a zero sum game and we the people will be the ones who will have zero when it’s all said and done.

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  • Surender
    12/01/2017
    ···

    If this tax legislation is passed the republicans would have proved beyond any measure how bankrupt and hypocritical they have become. They need to be booted out of office!

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  • Marylynn
    12/01/2017
    ···

    Are you kidding me a $100 billion in cuts to medicaid, medicare, farm subsidies, student loans, etc.? Why in the world do we continue to elect these fools? Once again, it's the middle/lower class that will be hurt by this. I'm fed up with the bozos in Washington D.C., it's time to drain the swamp.

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  • NoHedges
    12/01/2017
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    http://abcnews.go.com/Health/years-flu-season-bad-medical-experts-warn/story?id=51473025 Since healthcare is only an entitlement for the wealthy, and the middle class is rapidly dying, this tidbit seemed relevant. The flu vaccine used this year in Australia — which has the same composition as the vaccine used in the U.S. — was only 10 percent effective, according to a preliminary estimate, at preventing the strain of the virus that predominantly circulated during the country's flu season,an international team of medical experts wrote in a perspective published today in The New England Journal of Medicine.

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  • NoHedges
    12/04/2017
    ···

    Met an interesting Canadian, he happened to mention one of the easiest ways to pull the plug on this whole GOP tax nightmare is to pull out of the US market and move any money to an off-shore account. Apparently, even Canada is a possibility. There are branches here in the US. He stressed moving money wouldn't keep it out of the hands of the IRS, but it would keep it safe if faced with a banking collapse or a “domestic war” there are actually, according to him, many advantages to having a Canadian bank account. Not knowing much about the markets, outside my humble sharebuilder account, or much about international banking law; I have decided to simply pass the information along for you to decide. I will say, some of the “other bonuses” were inciting. Heck, if it helps pull the plug on the ludicrous tax reform, for me it is worth it just for the sake of all the grad students out there trying to make ends meet and save the Alaska wilderness from further travesties. Is there any truth to this man’s claim? He did seemed sincere, which is more than I can say about my congressional representative. He even took the time to explain to me how to go about it, what documents I might need, and how to locate Canadian branches in the US. Which is definitely more than my congressional OR senatorial rep has ever done. And let’s face it, lately, Canada has far more scruples than the US when it comes to the middle-class’ financial future. Not to mention, all the insane internal and external war mongering is disgusting. Every other day there is a new resolution “condemning” so and such. Indicating to me the GOP knows what is right and wrong, but simply doesn’t give a crap. Finally, it does seem logical: Corporate America loves their stock exchange and banking fees. So, maybe, taking my ball and refusing to play might not be such a bad idea.

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  • Christine
    12/02/2017
    ···

    I ask all 535 members of Congress plus the veep & djt to be honest about how you all will receive massive tax cuts. Stop LYING! This is UNCONSCIONABLE!

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  • Donelle
    12/01/2017
    ···

    Social security is not an entitlement, we the people have paid into and continue to pay into SS. If you want to cut entitlements let’s start on your doorstep: No Pension if served less then 20 years - Public service should not be your career, and limit the amount you can get just like the former presidents/ No salary raise - the average American worker has seen no larger then at most a 2% salary raise, you should be on the same level as your constituents (as we have seen that you don’t understand what an average makes and can buy - you remember that extra 1,000.00 to buy a new, car, take a vacation you spewed) / No government living expense while you are away from your home district - commute like the rest of us / plus I am sure there are other handouts you are getting from our tax dollars that could be better spent!!

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  • Deanna
    12/03/2017
    ···

    Let’s get one thing straight. My social security is NOT an entitlement. When I pay my taxes are broke down into categories. Federal tax,Medicare, social security. I have not paid into my social security all these years to have it stolen by a bunch of greedy thieves. I didn’t give it to the government to have it go to a budget I didn’t get to vote for, I didn’t give it to the government...period. It is my money. It is my BENEFIT. You will owe the American people a lot of money if you think you are going to steal from us...the money you force us to pay into for our own retirement. Everyone who votes for this scam should be arrested!!

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  • NoHedges
    12/04/2017
    ···

    Social Security is an entitlement that only the baby boomers will ever have access to. And we all pay into social security. However, most of us, below the age of 50, realize that we will never see a dime of that money, because it, like every safety net this GOP touches, won’t be around by the time it is our turn. If we aren’t all dead from the Global War the administration keeps trying to ignite. You want Social Security to stop being seen as an “entitlement”, then make sure it is there for ALL who are currently paying in. Otherwise, hop on the bandwagon and realize that you, like everyone else, is about to get screwed out of their dreams. But, at least you had a shot at the American Dream most of us, never did, and never will. We have been the fuel for these “generational entitlements” for 3 generations and we are done, Simply put we are tired of being treated like canon fodder.

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  • Ochoninja
    12/02/2017
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    No way paygo wants to take Social Security and Medicare to play with. They belong to us and are not supposed to be be used fir other things. We pay into medicare and social security. It is like a savings account. If wealthy want more they can cut out some of their right offs. How did President Obama leave our economy in the black?

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  • Ira
    12/03/2017
    ···

    Well I am glad that the Senate left the mortgage interest deduction that really does make this a middle class tax reform. I am on social security and I fear Congress will have to cut Medicare and Social Security just to keep the borrowing to an already unreasonable limit. If we keep it up the entire budget will go to pay just the interest and God forbid what happens if or when China calls the loans. News organizations seem to believe we are under Russian influence, but watch out for China!

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  • Brent
    12/01/2017
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    Liberals complaining about transfer of wealth has me laughing. That's what all these programs are.

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  • Dawn
    12/07/2017
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    One wonders why we even have laws, rules, codes, etc. This Congress and Administration just “suspend” them to get their sneaky way, They all seem to feel they are above the law. I sure hope they find out differently!

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