GOP tax bill could spur $25 billion in Medicare cuts: CBO [View all]
Source: The Hill
The GOP tax bill could trigger automatic cuts worth $136 billion from mandatory spending in 2018, including $25 billion in Medicare cuts, if Congress doesnt find another way to offset its deficit increases, according to the Congressional Budget Office (CBO).
The tax bill will add an estimated $1.5 trillion to the deficit over a decade. Congressional pay-as-you-go rules, called pay-go, require that the White House Office of Management and Budget (OMB) automatically cut mandatory spending if legislation increases the deficit beyond a certain point.
Without enacting subsequent legislation to either offset that deficit increase, waive the recordation of the bills impact on the scorecard, or otherwise mitigate or eliminate the requirements of the [pay-go] law, OMB would be required to issue a sequestration order within 15 days of the end of the session of Congress to reduce spending in fiscal year 2018 by the resultant total of $136 billion, CBO wrote on Tuesday.
Read more: http://thehill.com/policy/finance/budget/360300-tax-bill-could-spur-25-billion-in-medicare-cuts-cbo
House and Senate Switchboard phone information) (202) 224-3121