The Carried Interest Loophole-Closer is the Kitty and Congress is trying to put it in the Microwave

No kittens were harmed in the making of this blog post

Citizens for Tax Justice (CTJ) released an important call to action along with a report this afternoon about carried interest, the loophole that allows multimillionaire investment fund managers to subject their income to lower tax rates than the average citizen. The "extenders" tax package, which is currently before the Senate, includes a carried interest loophole-closer, but it seems that senators are listening to the fund managers' well-heeled lobbyists and their ridiculous claims against this commonsense policy change.

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Contracting Industry Verklempt Over Possibility of Contracts Going Public

A Stack of Contracts

The Federal Times had an interesting piece last week on the contracting industry's reaction to a recent notice in the Federal Register seeking input on "how best to amend the Federal Acquisition Regulation (FAR) to enable public posting of contract actions." Despite the FAR Councils' stated efforts to post contracts "without compromising contractors' proprietary and confidential commercial or financial information," industry executives are beside themselves over such a monumental change. Not surprisingly, their arguments against the idea don't hold much water.

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DOD IG Finds Private Security Contractors Performing Inherently Governmental Tasks

A U.S. Soldier Meets with Private Security Contractors

Jeremy Scahill, an investigative journalist and contributor to The Nation, blogged this morning about a discovery he made in a recent Department of Defense (DOD) Inspector General's (IG) report. The DOD IG found, in what Scahill mockingly referred to as "a not shocking revelation," that "private contractors working for U.S. Special Forces have been allowed to 'perform inherently governmental functions.'"

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Who Says We Need More C-17s...Oh Yeah, Congressional Missourians Do

A C-17 Globemaster III

As Congress gears up for its annual budget process, parochial-minded members are drawing their customary battle lines around administration-targeted programs. One of those is the C-17 transport plane, which the Pentagon has been trying to kill for several years because it deems the military to have ample airlift capacity. Last week, the St. Louis Post-Dispatch highlighted a press conference held by four congressional Missourians who, claiming to know better than the Pentagon, declared that they were going to fight the plane's proposed cancellation.

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OMB Watch Partners with CREDO Action to Stop Reckless Outsourcing

CREDO Action & OMB Watch

Last month, the Office of Management and Budget (OMB) proposed new "inherently governmental" guidelines, which determine how federal agencies outsource services to private contractors, and asked for feedback from the public on the proposed measures. OMB Watch has collaborated with CREDO Action to spur public participation in the comment process through a petition drive. In addition to advocating for a broader definition of inherently governmental, the comment we suggest for submission targets the outsourcing of certain functions to private security contractors.

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Obama to Ask for 'Enhanced Rescission Authority'

President Barack Obama

Over the weekend, rumors began trickling out of the administration that President Obama will soon send to Congress a proposal to grant the president greater authority to cut spending out of enacted appropriations bills, called enhanced recession authority. In a Congressional Quarterly article (subscription), which ran on Friday, and a Bureau of National Affairs piece (subscription), which appeared yesterday, an unnamed administration source states that the White House will send the proposal to Capitol Hill before Memorial Day.

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CBO Monthly Budget Review, April 2010

Congressional Budget Office

The Congressional Budget Office (CBO), which economist James Galbraith suggested in yesterday's Washington Post should be eliminated because its "projections are indefensible, internally inconsistent and economically impossible," released on Friday one of its more accurate pieces of work, the Monthly Budget Review (MBR) for April.

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Feingold Introduces Moderate Contracting Reform Bill

Sen. Russ Feingold (D-WI)

Yesterday afternoon, Sen. Russ Feingold (D-WI) introduced bi-partisan contracting reform legislation, titled the "Federal Contracting Oversight and Reform Act of 2010," that seeks to bring more transparency to the government contracting process. Although several of the bill's provisions could have been stronger, one hopes the legislation, if enacted, will lay the foundation for future reforms.

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You Can't Say Congress Isn't Listening to the American People...

'Merican Dollars Should Stay in Merica'

When an Economist/YouGov poll came out early last month, several economics and political bloggers re-highlighted the fact that Americans, by a large majority, favor lower government spending over increased taxes in order to balance the budget, but that when asked to make hard choices refuse to cut any specific programs except for low-hanging fruit like foreign aid. According to a recent Congressional Quarterly article (subscription), it seems that members of Congress may answer the average American's wish during this year's budget process.

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TPC Releases New Long-Term Federal Budget Projections

It's the Budget, Stupid!

The Tax Policy Center (TPC), a joint project of the Urban Institute and the Brookings Institution, released a new report yesterday examining the nation's budget outlook over, what TPC describes as, "10-year and long-term horizons." The paper, whose title recalls a famous Yogi Berra quote, examines these horizons under three sets of assumptions: the Congressional Budget Office (CBO) baseline, an extended policy scenario, and the administration's FY 2011 budget proposal.

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