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“Adding $1.5 trillion in new deficits over a decade would be bad enough, but CBO shows how, under current law, statutory PAYGO will result in the complete elimination of all funding to dozens of mandatory programs next year, from assistance to farmers to border enforcement to student loans, as well as a roughly $25 billion in cut to Medicare.” (US Congressman Hoyer)

“Given that the required reduction in spending exceeds the estimated amount of available resources in each year over the next 10 years, in the absence of further legislation, OMB would be unable to implement the full extent of outlay reductions required by the PAYGO law.” (US Congressional Budget Office, Nov. 14, 2017)

“Hoyer Statement on the Joint Committee on Taxation Dynamic Score of the Senate GOP Tax Scam
For Immediate Release: 
November 30, 2017
Contact Info: 
Mariel Saez 202-225-3130
WASHINGTON, DC – House Democratic Whip Steny H. Hoyer (MD) released the following statement today on the dynamic score of the Senate GOP tax bill released by the Joint Committee on Taxation, which confirms that the GOP tax scam will add over a trillion dollars to the deficit:

“Even when applying Republicans’ favored analytical tool of ‘dynamic scoring,’ their tax cuts would not come close to paying for themselves.  Instead, they would add more than $1 trillion to deficits over the next ten years, according to a report released this afternoon by the Joint Committee on Taxation (JCT).  

The JCT analysis found that economic output – which Republicans have claimed would be massive and more than make up for deficit losses through added revenues – would be insufficient to cover more than two thirds of the bill’s $1.5 trillion cost.
 
“Now that Republicans’ tax proposal has been shown to balloon deficits and yield far less economic growth than they have promised, it is time to abandon this legislative disaster. 

The American people do not want to raise taxes on 82 million middle-class households in order to provide massive tax cuts to the wealthy. 

Instead, they want us to work together to craft bipartisan, permanent tax reform that is revenue-neutral and doesn’t simply transfer wealth from those struggling to get by to those at the very top.”. https://www.democraticwhip.gov/content/hoyer-statement-joint-committee-taxation-dynamic-score-senate-gop-tax-scam

“Today’s analysis from the Congressional Budget Office shows the full fiscal impact of the Republican tax bill’s massive deficit increases.  Adding $1.5 trillion in new deficits over a decade would be bad enough, but CBO shows how, under current law, statutory PAYGO will result in the complete elimination of all funding to dozens of mandatory programs next year, from assistance to farmers to border enforcement to student loans, as well as a roughly $25 billion in cut to Medicare.  This further illustrates the consequences of Republicans’ desire to provide huge tax breaks to the wealthiest while raising taxes on 36 million middle-class taxpayers.” (US Congressman Hoyer, Nov. 14, 2017)

“Effects of legislation that would raise deficits by an estimated $1.5 trillion over the 2018-2027 period
November 14, 2017
Cost Estimate
Letter to the Honorable Steny H. Hoyer
hr1hoyerletter.pdf
https://www.cbo.gov/files/hr1hoyerletterpdf
Summary
Information about the effects of legislation that would raise deficits by an estimated $1.5 trillion over the 2018-2027 period, specifically with respect to a sequestration—or cancellation of budgetary resources—in accordance with the Statutory Pay-As-You-Go Act of 2010 (PAYGO; Public Law 111-139).

The PAYGO law requires that new legislation enacted during a term of Congress does not collectively increase estimated deficits. The Office of Management and Budget (OMB) is required to maintain two so-called PAYGO scorecards to report the cumulative changes generated by new legislation in estimated revenues and outlays over the next five years and ten years. If either scorecard indicates a net increase in the deficit, OMB is required to order a sequestration to eliminate the overage. The authority to determine whether a sequestration is required (and if so, exactly how to make the necessary cuts in budget authority) rests solely with OMB.

CBO has analyzed the implications of enacting a bill that would increase deficits by $1.5 trillion over a 10-year window, without enacting any further legislation to offset that increase. In accordance with the PAYGO law, OMB would record the average annual deficit on its PAYGO scorecard, showing deficit increases of, in the example provided, $150 billion per year. If the bill were enacted before the end of the calendar year, that amount would be added to the current balances on the PAYGO scorecard, which for 2018, show a positive balance of $14 billion. (For years after 2018, the balances range from a $14 billion credit to a $1 billion debit.)

Without enacting subsequent legislation to either offset that deficit increase, waive the recordation of the bill’s impact on the scorecard, or otherwise mitigate or eliminate the requirements of the PAYGO 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.

However, the PAYGO law limits reductions to Medicare to four percentage points (or roughly $25 billion for that year), leaving about $111 billion to be sequestered from the remaining mandatory accounts.

Because the law entirely exempts many large accounts including low-income programs and social security, the annual resources available from which OMB must draw is, in CBO’s estimation, only between $85 billion to $90 billion, significantly less than the amount that would be required to be sequestered. (For a full list of accounts subject to automatic reductions, see OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2018 (See link at CBO web site)
Given that the required reduction in spending exceeds the estimated amount of available resources in each year over the next 10 years, in the absence of further legislation, OMB would be unable to implement the full extent of outlay reductions required by the PAYGO law.” https://www.cbo.gov/publication/53319

“PRESS RELEASE ● GOP TAX PLAN
Hoyer Statement on the CBO’s Analysis that the GOP Tax Bill Will Trigger Statutory PAYGO Sequester Cuts
For Immediate Release: 
November 14, 2017

WASHINGTON, DC – House Democratic Whip Steny H. Hoyer (MD) released the following statement today after the Congressional Budget Office (CBO) released their analysis of the Republican tax scam bill in response to a letter Whip Hoyer sent inquiring about the automatic sequester cuts to vital programs that will be required under statutory PAYGO:

“Today’s analysis from the Congressional Budget Office shows the full fiscal impact of the Republican tax bill’s massive deficit increases.  Adding $1.5 trillion in new deficits over a decade would be bad enough, but CBO shows how, under current law, statutory PAYGO will result in the complete elimination of all funding to dozens of mandatory programs next year, from assistance to farmers to border enforcement to student loans, as well as a roughly $25 billion in cut to Medicare.  This further illustrates the consequences of Republicans’ desire to provide huge tax breaks to the wealthiest while raising taxes on 36 million middle-class taxpayers. 
 
“I wrote the statutory PAYGO law when Democrats were in the Majority because I believe that Congress has a responsibility not to load the next generation with a massive amount of debt.  With this tax bill, Republicans are irresponsibly planning to do just that.
 
“While it is possible to avoid the PAYGO enforcement cuts triggered by their added deficits, Republicans would need Democratic votes to do it, requiring them to abandon their go-it-alone partisan strategy, which is only leading them on a path to failure and to putting our country in danger. 

I urge them to abandon their disastrous tax bill and instead work with Democrats on real, bipartisan, permanent tax reform that won’t balloon our debt or trigger cuts under PAYGO.”

Links to documents:
Whip Hoyer’s Letter to CBO” https://www.democraticwhip.gov/sites/democraticwhip.house.gov/files/TAX%20PAYGO%20LETTER%2011-13-17.pdf
https://www.democraticwhip.gov/content/hoyer-statement-cbo’s-analysis-gop-tax-bill-will-trigger-statutory-paygo-sequester-cuts

Click to access hr1hoyerletter.pdf

“The GOP Tax Plan Breaks All the Rules
No, really, it does not comply with the rules. Here’s how Republicans will get around that“., By Jim Newell, NOV. 10 2017 6:13 PM http://www.slate.com/articles/news_and_politics/politics/2017/11/the_cynical_trick_that_could_save_the_gop_tax_plan.html

“Factor In Deductions And Other Expenditures, And The U.S. Corporate Tax Rate Isn’t So High“. See: “FACT CHECK: Does The U.S. Have The Highest Corporate Tax Rate In The World?” August 7, 2017 10:09 AM ET by DANIELLE KURTZLEBEN
https://www.npr.org/2017/08/07/541797699/fact-check-does-the-u-s-have-the-highest-corporate-tax-rate-in-the-world

Waiving PAYGO will not be easy, explains this article:
“Waiving the Statutory PAYGO Act for the Tax Cuts and Jobs Act”
By Alan Cohen Posted on November 30, 2017, 6:45 pm
https://www.americanprogress.org/issues/economy/news/2017/11/30/443602/waiving-statutory-paygo-act-tax-cuts-jobs-act/

Emphasis our own throughout.