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Democrats wanted to adhere to "pay as you go" rules that they adopted this year.
Unlike the "pay as you go" rules of the 1990's, Congress would not have to offset the costs of new tax cuts.
Democrats and Republicans alike want to prevent that increase, just as they have in the past, but the one-year cost has ballooned and Democratic "pay as you go" rules now require Congress to make up for the lost revenue.
But many economists believed that the agreement's tough "pay as you go" rules and a resulting infusion of revenue eased the recession of the early 1990s, and paved the way for the later budget surpluses and economic boom.
In the same way that Mr. Obama struck his deal to secure lower tax rates for the middle-class and win an extension of unemployment benefits, Mr. Bush gave on tax rates to get "pay as you go" rules — meaning that no further spending could be approved without compensating budget cuts or revenue increases.
But if Democrats pass a tax cut without trying to make up for the missing revenue, they would be undermining their signature tool for enforcing fiscal discipline: the "pay as you go" rules, which require that any new tax cut must be offset with tax increases or spending cuts in other areas.
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Congress's sensible pay-as-you-go rules sensibly do not apply to emergency spending.
It imposes real pay-as-you-go rules on future outlays.
It will probably get around the pay-go rules or whatever else might apply and it'll postpone the tax again.
But the pay-go rules have expired, and the new Republican-led Congress is unlikely to reinstate them.
It also abides by pay-go rules, since projects moved up to 2008 need not be done in 2009.
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