Most Senators I talked to yesterday in both parties had no idea CBO said the tax bill would trigger ~$100B/year in automatic entitlement cuts, including $25B from Medicare, because of the Paygo law.
bloomberg.com/news/articles/…
bloomberg.com/news/articles/…
There may a magic asterisk way out of this, but for now, Republicans need Democrats to agree to waive Paygo cuts triggered by their tax cut bill.
You need 60 votes to waive Paygo.
You need 60 votes to waive Paygo.
Dilemma for Democrats: Vote for an amendment helping clear the way for the tax bill without cutting Medicare, or risk automatic cuts to many programs they - and voters - care about in an election year. 10 Trump state Democrats have a tough decision to make and soon.
The potential way out could come from Mick Mulvaney, who would be the one in charge of implementing Sequestration II.
Mulvaney has long advocated entitlement cuts. Trump vowed not to cut Medicare.
Dilemma.
Would Mulvaney simply declare the bill doesn't increase the deficit?
Mulvaney has long advocated entitlement cuts. Trump vowed not to cut Medicare.
Dilemma.
Would Mulvaney simply declare the bill doesn't increase the deficit?
If tax bill becomes law, Paygo 🍍 could become wrapped up in the many year-end cliffs requiring bipartisan deals:
*Omnibus to keep the government open, with increased spending (and deficits) expected.
*Disaster $$$ for P. Rico/TX/FL (more deficits)
*SCHIP
*DACA/CSRs?
*Omnibus to keep the government open, with increased spending (and deficits) expected.
*Disaster $$$ for P. Rico/TX/FL (more deficits)
*SCHIP
*DACA/CSRs?
Obama signed Paygo law in 2010, championed by Steny Hoyer. Came after Bush tax cuts, wars, Medicare Part D, Obama stimulus all charged to national credit card & with great recession swelling deficit to record.
Premise: If you want to eat donut, gotta eat your spinach.
Premise: If you want to eat donut, gotta eat your spinach.
