pay-as-you-go rule
E894163
The pay-as-you-go rule is a U.S. fiscal policy requirement that new spending or tax cuts be offset by savings or revenue increases so they do not add to the federal deficit.
Statements (46)
| Predicate | Object |
|---|---|
| instanceOf |
budget enforcement mechanism
ⓘ
fiscal policy rule ⓘ |
| alsoKnownAs |
PAYGO
NERFINISHED
ⓘ
paygo rule NERFINISHED ⓘ |
| appliesTo |
United States federal government
NERFINISHED
ⓘ
mandatory spending ⓘ revenue legislation ⓘ |
| appliesWhen | Congress enacts new mandatory spending or revenue laws ⓘ |
| contrastsWith |
cut-as-you-go approaches
ⓘ
policies that allow deficit-financed tax cuts ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| criticizedFor | encouraging budget gimmicks to create apparent offsets ⓘ |
| doesNotPrimarilyApplyTo | discretionary appropriations ⓘ |
| domain |
federal budgeting
ⓘ
fiscal policy ⓘ |
| effect | limits deficit increases from new laws ⓘ |
| enforcedBy | sequestration procedures ⓘ |
| enforcementMechanism | automatic spending cuts if targets are not met ⓘ |
| goal |
deficit neutrality of new legislation
ⓘ
fiscal discipline ⓘ |
| implementedBy |
Congress
NERFINISHED
ⓘ
executive branch budget agencies ⓘ |
| influences |
design of entitlement programs
ⓘ
design of tax legislation ⓘ |
| introducedIn | 1990s ⓘ |
| legalForm |
congressional budget rule
ⓘ
statutory rule ⓘ |
| measurementAgency |
Congressional Budget Office
NERFINISHED
ⓘ
Office of Management and Budget NERFINISHED ⓘ |
| measurementBasis | projected budgetary effects ⓘ |
| origin | Budget Enforcement Act of 1990 NERFINISHED ⓘ |
| policyType | deficit control rule ⓘ |
| purpose | to prevent new legislation from increasing the federal deficit ⓘ |
| reinstatedBy | Statutory Pay-As-You-Go Act of 2010 NERFINISHED ⓘ |
| relatedTo |
Congressional budget process
ⓘ
balanced budget efforts ⓘ federal deficit ⓘ |
| requires |
budgetary offsets for new entitlement spending
ⓘ
budgetary offsets for new revenue reductions ⓘ new direct spending to be offset ⓘ new tax cuts to be offset ⓘ |
| scope | federal level ⓘ |
| status | periodically modified by Congress ⓘ |
| supportedFor | promoting responsible budgeting ⓘ |
| timeHorizon | multi-year budget windows ⓘ |
| usedIn | federal budget reconciliation debates ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.