Rep. Ed Whitfield (R-KY) has proposed a novel way to strengthen the House Pay-As-You-Go (PAYGO) rule. PAYGO – which requires that all legislation expanding entitlements or cutting taxes be fully offset – has been exposed an ineffective gimmick. PAYGO exempts discretionary spending increases (which comprise 40 percent of the budget) as well as the automatic 6 to 8 percent annual baseline increases in entitlement spending. PAYGO merely says that if Congress wants to grow total entitlement spending faster than the baseline rate, they must raise taxes accordingly. Or, if they …
