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Jamie Dupree's Washington Insider

Posted: 10:06 p.m. Tuesday, March 2, 2010

PAYGO Exemptions 

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By Jamie Dupree

As Republicans squirmed a bit over the budget battle involving Sen. Jim Bunning (R-KY), they also said Bunning's main goal is one that they share, ensuring that when the Congress spends money, something must be cut in order to pay for it.

That's the central point of the recently enacted Pay-As-You-Go law, known in the halls of Congress simply by the abbreviation, PAYGO.

But since it was signed by President Obama in mid February, Democrats have tried their best to get around it.

The first jobs bill unveiled in the Senate had a specific PAYGO exemption for certain portions of the bill.

The slimmed down $15 billion jobs bill that was approved last week by the Senate had no offsetting budget cuts, so the Senate voted to waive the PAYGO law on that spending.

That same jobs bill is now waiting for action in the House, where Democratic leaders have been trying to stop Blue Dog Democrats from insisting that the spending be offset by budget cuts in other programs.

And the latest "tax extenders" bill in the Senate, as detailed on this blog, specifically exempts from the PAYGO law an extra ten months of jobless and COBRA health benefits, along with extra money to help states deal with increased Medicaid costs.

Add in last night's short term jobless benefits extension, and that's five times that Democrats have tried to make an end run on the brand new PAYGO law, and it isn't even three weeks old.

Republicans weren't shocked in the least.

"I just think it's complete hypocrisy to say we support PAYGO, and then come in with one deficit spending bill after another," said Sen. John Cornyn (R-TX).

Cornyn and others made clear they wished Sen. Bunning had picked a different target to make this clear, but they understood his frustration.

"It's good that people make a point around here that we are spending money we don't have," said Sen. George LeMieux (R-FL).

"If we are going to spend money, I think we ought to pay for it," said Sen. Saxby Chambliss (R-GA), who shrugged his shoulders when asked if the Bunning controversy would hurt the GOP.

"I don't think anybody on our side of the aisle has changed their mind on that fundamental issue," he added.

Democrats meanwhile took every shot they could think of, and more against Bunning, trying to link every sitting Republican Senator and candidate to the irascible Kentucky Republican.

Who won this fight?  It depends which side is answering the question.

 
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