Republicans’ Tax Cuts and Jobs Act would add $1.5 trillion to the federal deficit over 10 years.
According to the Statutory Pay-As-You-Go Act, or Paygo, the new debt must be offset or the Paygo requirement must be waived.
If Paygo is not waived it would trigger automatic cuts to programs like Medicare and farm subsides.
The Republican tax plan would force the government to slash billions of dollars worth of core services unless Democrats relent, according to a new report.
A letter from the Congressional Budget Office (CBO) to Democratic Rep. Steny Hoyer said that due to a congressional rule, essential programs like Medicare and Border Patrol could face deep cuts unless some Democrats agree with the GOP to waive the provision.
In question is the Statutory Pay-As-You-Go Act, or Paygo, that requires tax cuts and other types of legislation to pay for themselves or else triggers automatic spending cuts to offset any new debt added because of the legislation.
According to the CBO, since the GOP’s Tax Cuts and Jobs Act (TCJA) adds roughly $1.5 trillion in new debt over the next 10 years, Paygo would force immediate cuts in spending of $150 billion a year on average to offset the reduced …read more
Source:: Businessinsider – Politics