Paygo


Also found in: Acronyms, Wikipedia.

Paygo

In the United States, the practice of the federal government not to authorize increased spending or tax cuts without offsetting it by decreasing spending or raising taxes in some other place. That is, under paygo, all legislation and spending must be revenue neutral. The intent behind paygo is to encourage responsible spending by the federal government. It was in place between 1990 and 2002, and in 2007 and 2008 and was again implemented in 2010. See also: Statutory Pay-As-You-Go Act of 2010.
References in periodicals archive ?
Categories: Natural Resources, Administrative applications, Agricultural programs, Budget obligations, Crop insurance, Federal aid programs, Federal Crop Insurance Program, Food relief programs, International food programs, PAYGO, Presidential budgets, Program management, Spending legislation, USDA Conservation Reserve Program
Saying that a PAYGO system is a feasible way to provide retirement benefits is not the same as saying it is desirable.
Now, Congress is proposing to suspend PAYGO again to pass a $13 billion extension of unemployment benefits and to double education benefits for returning war veterans.
GASB believes that the reporting for the current PAYGO financing practice fails to:
Judith Feder: Even in the absence of PAYGO legislation, legislative proposals are sometimes generated with a predetermined sum in mind.
Significantly, the House voted to exempt tax cut extensions from the PAYGO rules, and included language instructing the Ways and Means Committee to make tax cuts enacted in 2001 and 2003 permanent, which would cost another $138 billion (not included in the CBO projected budget deficits above) over the next five years.
But regrettably they seem to believe that changing some key parameters of the PAYGO pension system will solve the crisis.
PAYGO returns also tend to be lower than financial market returns.
One important contribution of this book is to clarify that the debate is not merely about funding and PAYGO, but about a surprising number of alternative funding methods, with full funding and PAYGO as opposite ends of a spectrum of possibilities.
Options can be divided into three categories: strengthening PAYGO (known as the "Solidarity system"), adopting a system of notional accounts, and shifting to a funded system.
Congress recently enacted a return to statutory PAYGO and, in February, the President established a commission to identify policies to change the fiscal path and stabilize the debt-to-GDP ratio.
The PAYGO requirement would not apply to big-ticket items, such as making individual tax relief enacted during the previous administration permanent (see below), but it would require Congress to find politically acceptable offsets for other legislative priorities.