Statutory PAYGO
President Obama has signed into law legislation to increase the federal debt limit by $1.9 trillion to $14.3 trillion. The legislation includes statutory pay-as-you-go (PAYGO) budgeting requirements mandating that most new spending increases or tax cuts must be paid for with separate spending cuts or tax increases. The newly reinstated PAYGO rules include a few notable exemptions:

• Two-year exemption of the estate-tax at 2009 levels ($3.5 million individual exemption, 45% rate)
• Middle class tax cuts
• Five-year exemption for Medicare doctor payments
• Five-year exemption for a patch for the alternative minimum tax (AMT)

Extension of other expired tax provisions, like the IRA charitable rollover, would have to be paid for.