Paygo


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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 ?
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 rules.
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.