U.S. House Passes Pay As You Go Legislation

The United States House Of Representatives has approved legislation that would require pay as you go budgeting for future federal budgets. The "paygo" approach had been used in the 1990's. The paygo legislation needs approval in the Senate before it can be signed into law by the President. The paygo legislation would allow for instances of increased spending in emergencies such as devastating natural disasters.

Critics of the legislation believe that enacting the paygo approach after approving stimulus funding is hypocritical but supporters argue that it is needed now more than ever and the stimulus funding was a result of a once in a century economic downturn. The bill passed the House by a vote of 265-166.

Critics also point out the exemptions in the bill. Most notably, there is no cap on appropriations spending, an exemption for some Bush era tax cuts, an exemption for the estate tax, a fix for the alternative minimum tax and increased reimbursement for medicare doctors.