On the recordJanuary 5, 2007
two plus two does not equal six, but if I were to assume that it did, I could take care of the budget. Easy. PAYGO assumes that when you increase taxes, revenue goes up, and when you lower tax rates, revenue goes down. But history shows that that is not what happens, because there are economic factors, and people change behavior. Since the tax cut-rate cuts of 2003, revenue has been up every year, and in 2 of the last 3 years has been up by double digits. Two plus two does not equal six. PAYGO does not equal fiscal responsibility. What PAYGO does equal is tax increases that will hurt the economy and will not raise revenue and will not help the deficit.
Source
govinfo.gov
