Yesterday, the U.S. House of Representatives elected Nancy Pelosi (D-Calif.) as speaker, her second stint in the role (she was formerly speaker from 2007–2011). Barring a change in leadership, Pelosi will be speaker throughout the 116th Congress, which runs through January 2021. Pelosi's rules package, which sets out how Democrats intend to run the House, contains a measure that has drawn opposition from her left flank.
Paygo, congressional shorthand for “pay as you go,” is a measure designed to the keep the deficit from growing. It holds that any passing of tax cuts or increases in spending must be offset by a corresponding tax increase or spending cut in the same cycle. The way that this functions as a check on the deficit is simple: tax cuts (where the government brings in less) and spending increases (where the government spends more) both grow the deficit. Paygo, therefore, is offered as a nod to fiscal responsibility. (As far as congressional shorthand goes, however, paygo cannot compete with the JAWS Act, which wonderfully stands for Justice Attributed to Wounded Sharks.)
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