Fiscal Foolery: Addressing Misconceptions, Pt. I

Suspending the 18.4 Cents/Gallon Tax This Summer Sounds like a good idea, on the face of it. Cut the 18.4 cents-per-gallon Federal gas tax and customers will save roughly $2-3 each visit to the pump during the summer, right? What's not to like? Well, don't ask whether it makes sense to encourage burning more fossil fuel or whether we should raid the highway trust fund when bridges are collapsing. Think about how to lower gas prices to boost the economy.

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OMB Watch Statement on FY 2009 Budget

OMB Watch released a statement on April 22 on the FY 2009 budget resolution negotiations. The statement urges both House and Senate negotiators to uphold the fiscally responsible principles promised by Democrats when they took over the majority in 2006. A key aspect of the ongoing budget negotiations is whether to offset the $70 billion cost of a one-year fix to the creep of the Alternative Minimum Tax (AMT). The House version of the resolution offsets the costs while the Senate does not.

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DAILY FISCAL POLICY REPORT -- April 23, 2008

Supplemental -- Hoyer Expects Bill Late Next Week: Amid reports that congressional Democrats haven't settled on a strategy yet regarding the president's $108 billion war spending supplemental request, House Majority Leader Steny Hoyer (D-MD) told reporters yesterday that the House and Senate could take it up on the floor by the end of next week. "Democratic leaders have repeatedly said that, in the end, US troops in the field will be funded. But expectations are high that finally Congress will be able to extract a significant policy concession for that money." Story.

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Contractor Accountability Heats Up

Scott Amey over at the Project on Government Oversight reminded us on Monday that there has been a lot of long overdue action in Washington this month to hold federal contractors more accountable. Scott has a nice summary of some of the bills garnering attention in the House and a few other snipits from the past few weeks related to federal contracting. (Read Scott's summary). Two of the bills Scott mentions (H.R. 5712 and H.R. 3033 will be considered on the House floor this week. Another one, H.R.

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Times: Clouding the Housing Debate with "Facts"

For the second time in as many weeks, the New York Times tries to make sense of the nation's housing crisis and editorializes in favor of expanded bankruptcy protection and against "voluntary" efforts to forestall further foreclosures and foster re-financings, but it flies in the face of the facts: Most important, Congress must not continue with efforts that have not worked to date, namely, appeals to the mortgage industry to act voluntarily to help distressed borrowers. Instead, lawmakers should allow bankrupt homeowners to have their mortgages modified under court protection.

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DAILY FISCAL POLICY REPORT -- April 22, 2008

Earmarks -- Pelosi OKs DOJ Probe of Rep. Young Conduct: In a reverse case of separation of powers, House Speaker Nancy Pelosi (D-CA) said yesterday that she concurs with last week's Senate vote referring the Rep. Don Young (R-AK) Coconut Grove improper earmark allegations to the Department of Justice. "The Speaker believes this a matter for the House ethics committee to look into, but she has no intention of standing in the way of the [Senate] bill as it moves forward to the president's desk," said Pelosi spokesman Nadeam Elshami.

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Supersized Supplemental Spending?

Saturday's New York Times reported on an emerging if-you-can't-beat-them-join-them strategy congressional Democrats are weighing as Congress takes up the Bush administration's request for a $108 billion supplemental war spending package for FY08:

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DAILY FISCAL POLICY REPORT -- April 21, 2008

In Congress This Week -- Farm Bill, Contracting Reform:
  • Farm Bill -- Following a one-week extension of the farm bill signed at the end of last week, Senate and House conferees plan to resume negotiations Tuesday, April 22 to reach a compromise on the five-year package which would renew U.S. agricultural programs. The sticking point remains finding $10 billion in new revenues to offset new spending in the bill.

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SCHIP Rules Imposed in 2007 Violated Law

The Government Accountability Office and the Congressional Research Service have concluded that rule changes imposed by the Bush administration on the State Children's Health Insurance Program (SCHIP) in 2007 violated federal law: BNA reports: In legal opinions released April 18, the Government Accountability Office and the Congressional Research Service said the SCHIP guidance is a rule for purposes of the Congressional Review Act (CRA) and so violates statutory requirements for congressional notice and review.

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Earmarks for Me, But Not for Thee

Hurling invective at earmarks and deriding them all as wasteful "bridges to nowhere," is a popular theme these days. However, as Sen. John McCain (R-AZ) has recently demonstrated, adopting a pox-on-all-earmarks position can quickly dissolve into a cafeteria-style earmark policy: "I like this earmark and this earmark, but not that one over there."

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