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Those tax cuts are supposed to be paid for by equal cuts to tax deductions and credits, a prescription some tax writers think will be impossible.
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Budget rules will be passed to require that any new spending or tax cuts will have to be offset by equal spending cuts or tax increases, he said.
Republican leaders have said they might support the payroll tax cut's extension if its cost is offset by equal spending cuts, a condition they did not apply for extending the Bush-era tax cuts on high incomes.
And despite their party's longstanding support of tax cuts, Republican leaders say they are opposed to any revenue-losing proposals unless they are offset by equal spending cuts — a condition they did not make for extending the Bush-era tax cuts.
The House majority leader, Representative Eric Cantor of Virginia, and other Republicans have suggested that additional aid money must first be offset by equal spending cuts, a prospect that Mr. Obama rejected.
No, Mr. Boehner wants to do it all over again: he announced on Tuesday that the House will not agree to raise the debt ceiling when it is reached later this year or early next, unless the increase is matched by equal spending cuts.
It might well equal cuts.
For example, tax cuts are supposed to be offset by equal amounts of spending cuts.
All else being equal, tax cuts tend to give the economy a boost by putting more money into the hands of consumers.
In a speech Tuesday to a fiscal summit meeting in Washington sponsored by the Peter G. Peterson Foundation, Mr. Boehner planned to double down on what has become known as the Boehner Rule: Any increase in the statutory borrowing limit must be accompanied by spending cuts of equal value.
In the extreme case where none of the tax cut can be reversed, satisfying the government budget constraint requires a spending cut equal to the tax cut (or by even more if there is a delay between the tax cut and the spending reduction, so that the amount of debt increases before the spending reduction).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com