The Democrat Establishment has passed “PAYGO”, a fiscal restraint hurdle, that will force any increase in government funding with additional tax raising. The Washington Examiner reports:
House Democrats passed new rules Thursday requiring that legislation creating new entitlement programs also include pay cuts or tax increases to prevent an increase in the federal deficit.
The rule’s imposition is a loss for some liberals, including Reps. Ro Khanna of California and Alexandria Ocasio-Cortez of New York, and activists on the Left who opposed it on the grounds that it could hinder efforts to introduce new programs, such as expanding Medicare coverage to all age groups or a federal jobs guarantee.
“I just think that it has a difference to do with how we actually pay for these things when you pair it with the fact that dynamic scoring is being removed as well, which I think is completely understandable. You’re not including the macroeconomic impact of ‘Medicare for all’ or tuition-free public colleges and universities,” said Ocasio-Cortez in a brief interview Thursday.
The new “pay-as-you-go” or “PAYGO” rule is not an impossible hurdle for progressives. House Democrats can elect to waive the rule on future votes. A similar rule is enshrined in federal law, and it too has proved surmountable in cases of major deficit-increasing legislation in past congresses.
PAYGO is essential for Democrats if they want to establish themselves as a fiscally responsible party and maintain support in the suburbs. Progressives will not easily be able to implement huge economic legislation without tackling PAYGO first.