Additionally, the legislation waives
pay-go requirements, which have never been enforced, to ensure that tax reform does not lead to program cuts.
Debt levels are anticipated to remain low, as medium-term capital needs are expected to be met largely by
pay-go financing.
Early in this Congress, members agreed to adopt so-called
Pay-Go budget provisions that require any new spending to be offset, either with cuts in spending for other programs, or by new tax revenue.
There is strong opposition to this provision in the Senate because the House's version of
pay-go exempts four big ticket items.
Pay-go rules, which require tax cuts be offset with tax increases or program cuts, have been approved by the House but have not been enacted into law.
Pay-go will constrain Congress's ability to adopt new spending for affordable housing and other national priorities.
11 military campaigns in Afghanistan and Iraq, is partly a reflection of the removal of the
pay-go spending rule.
Pay-go rules were adopted with the support of the first President Bush and a Democratic Congress and renewed in 1997 under a Republican Congress and President Clinton.
In light of the
pay-go environment, even if the deferred compensation provision is dropped from this legislation, it is likely to come up again," Stertzer said.
Pay-go means that new tax cuts and additional or new spending must be paid for by tax increases or spending cuts elsewhere in the budget.
Management has no near-term debt plans and capital needs appear moderate, assisted by
pay-go spending.
Pay-go rules require new spending or new tax cuts to be offset with savings elsewhere in the budget.
