PAYGO
Government & Politics abbreviation · US Law
| Stands for | Pay-as-you-go |
|---|---|
| Categories | Government & Politics |
PAYGO stands for Pay-as-you-go, a US law abbreviation.
Budget rule requiring that new tax cuts or increases in mandatory spending be offset so they do not add to the deficit. Under the Statutory Pay-As-You-Go Act of 2010, violations trigger automatic cuts to certain mandatory programs unless Congress waives the requirement.
Example: The bill's PAYGO effects were excluded from the scorecard by a provision in the final text.
Usage notes
PAYGO was first enacted in the Budget Enforcement Act of 1990, lapsed in 2002 and was restored in 2010. The House and Senate also have their own PAYGO rules. Congress routinely waives the statutory requirement, so sequestration under it has never actually been triggered. The term is pronounced "pay-go".
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