In a largely symbolic gesture, the House of Representatives yesterday passed an updated “pay-as-you-go” bill (also known as PayGo) intended to constrain deficit spending. In a nutshell, PayGo requires that new government spending or tax cuts be offset by corresponding spending cuts or tax increases. In theory, as long as the PayGo rules are followed, the deficit would not get any worse.
There are two problems, however, with this new PayGo bill. Read the rest of this entry »