A Green Light for Pay-Go?

Having fallen short in the Senate last year by only one vote and this year on a tie vote, and given a new Democratic majority in both houses of the 110th Congress, with budget hawks poised to take over as chairs of the House and Senate Budget Committees, Pay-Go’s time may finally have arrived. Quoted in BNA, OMB Watch’s Director of Federal Fiscal Policy, Adam Hughes, said, "A one-vote difference" in the Senate could be enough to get it through in that body.” Whether incoming Budget chairs Sen. Kent Conrad (D-ND) and Rep. John Spratt (D-SC) would propose a statutory or rules version of Pay-Go remains to be seen. The former would most likely require the President to offset an increase in the expected deficit due from tax cuts or entitlement spending increases with an across-the-board sequestration in a number of federal mandatory outlays. The latter would impose a budget process point of order requiring 60 votes in the Senate to waive the requirement for budgetary offsets; the House would need to adopt a version applicable to the rules of that chamber. The appetite for Pay-Go may be tested before the 110th Congress is sworn in, if the tax credit extenders package is brought up during the lame-duck session of Congress.
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