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PAYGO

Jan 28, 2010:  The pay-as-you-go (PAYGO) measure requires that new Congressional spending measures be offset in the budget by other funds, typically raised through tax increases or spending cuts. 

This measure comes within the context of a broader effort toward deficit reduction, in addition to a three-year freeze on non-defense discretionary spending, and a commission on deficit reduction established by executive order. 

Republicans prefer to raise the deficit rather than taxes.

60 Democratic senators voted to adopt, all 40 Republicans voted against it.
The House adopted such a rule in a 265-166 vote last July. 

There have been five instances in which some of the GOP senators who opposed PAYGO this time had voted in favor of its restoration in the past. 

In September 2002, former Senator Pete V. Domenici (R-NM), then the top Republican on the Budget Committee, said, “Of all the issues you will vote on, the most significant opportunity to save taxpayers money over the next year is this little resolution.”

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