Since the contributions are kept in virtual accounts earning a state-determined rate of return, while actual payments are made from current contributions and Republican government transfers, in effect the NDC system is a defined-contribution PAYGO
To view the implicit tax in the PAYGO
system--which today lies between 50 percent and 60 percent of contributions--as an indication of fundamental inefficiency is completely misguided since it is nothing but the result of an intergenerational redistribution.
In the case of the cancellation of direct spending items and limited tax benefits, the law requires that the savings be excluded from PAYGO
balances; therefore, they would not be available for other direct spending initiatives or tax cuts.
The statutory PAYGO
rule is intended to discourage or prevent Congress from taking certain legislative action that would increase the on-budget deficit.
Such changes came close to passing in the last two years; moderate Republican Senators Olympia Snowe, Susan Collins, and John McCain managed to prevent the passage of a budget resolution last year specifically over opposition to one-sided PAYGO
China's rapidly aging population, strong economic growth, and high return on capital mean that a funded pension system would be more efficient than a PAYGO
system (Li and XU 1996).
it also occurred despite the success of the BEA on its own terms - the caps have held and the PAYGO
process has discouraged new mandatory spending or tax cuts that are not paid for.
For statutory PAYGO
purposes, the Statutory PAYGO
Act (Title I of P.
The pre-reform system existed only in the state and urban collective sectors and was a pure PAYGO
system within each enterprise.
2) We recognize that the problems with the process were exacerbated by the "fast track" procedures the Administration invoked in referring the GATT accord to Congress, but submit that the fast track is no better excuse for bad legislation than the PAYGO
From a PAYGO
waiver for the tax reconciliation bill, which means no cuts to Medicaid or resource receipts, to $2.
Sequestration can also occur under the Statutory Pay-As-You-Go Act of 2010 (Statutory PAYGO
, Title I of P.