The Significance of Pay-Go and how it
Affects Members (September 1, 2007)
Lately we've been hearing more and more about something called "Pay-Go." The Pay-Go or pay-as-you-go rule compels new spending or tax changes to not add to the federal deficit. New proposals in Congress must either be "budget neutral" or offset with savings derived from existing funds. Most members of Congress agree that Pay-Go as a principle is good for the country, but it is proving very difficult to live up to. Given Congress’s collective reluctance to cut overall spending, it seems quite likely that Congress will continue to scour the tax code looking for loopholes it can close in order to redirect tax incentives elsewhere.
In September's podcast, Michael Kerley, NAIFA senior vice president of federal government relations, addresses the Pay-Go situation and how it could impact the NAIFA member. Because Pay-Go will affect most of the major policy decisions made over the next few years, it is important to understand exactly what Pay-Go is and how it impacts enacting new policies in Congress and how they could affect your bottom line.