Social Security: It's Long-Term Outlook Is Still Just Peachy

In fact, it's getting better. The Social Security Trustees Report for 2008 was released by the Social Security Administration today (it's quite the page-turner). Here are the key facts:
  • Social Security's "insolvency" date remains the same as last year - 2041. This is the year in which the program's payments will exceed its income.
  • The year in which program's payments will exceed tax revenues remains unchanged - 2017. This is the year that the trust fund will first be used to make payments to beneficiaries

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New Site in Town: Capitalgainsandgames.com

A collaboration of Stan Collender, Pete Davis, Andrew Samwick and Troy K. Schneider, Capitalgainsandgames.com presents a bridge between the Washington and the Wall Street perspectives on federal fiscal policy, with a new and improved look.

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DAILY FISCAL POLICY REPORT -- Mar. 25, 2008

Housing -- Home Prices Down 10.7% in 12 Mos.: A glut of foreclosed homes of historic proportions is starting to drive down U.S. home prices faster as lenders put more properties on the market and buyers show signs of interest. The value of single-family homes plummeted 10.7 percent in January compared to a year previous, per a closely watched survey of 20 major metropolitan regions. Story.

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Defrauding the Government Is OK If the Offending Firm Is Large Enough

That's the objection coming from House Republicans to Rep. Carolyn Maloney's (D-NY) contracting bill (HR 3033) that would debar federal contractors if they are found to have violated federal contracting rules or laws. "Right now, there is nothing stopping a fraudulent contractor from bouncing from federal agency to federal agency, fleecing U.S. taxpayers the whole way," Maloney said. "Congress can and should do more to fortify the federal procurement system, and show the door to contractors lining their pockets at the expense of hardworking taxpayers."

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DAILY FISCAL POLICY REPORT -- Mar. 24, 2008

National Debt -- Might Reach Limit by Election Day: A new CBO estimate of the projected national debt shows that the statutory debt limit might be reached by election day, rather than in 2009, per the previous estimate -- mostly due to expected decreases in corporate tax revenues. Under the "Gephardt" rule in the House, the debt ceiling increase in the budget resolution boosting the limit to $10.2 trillion goes into effect without a stand-alone vote. A Senate vote would still be required for a House bill raising the debt ceiling to become law.

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Waxman Asks AG About Overseas Contracting Loophole

House Oversight and Government Reform Committee chair Henry Waxman (D-CA) has sent a letter* to Attorney General Michael Mukasey asking why federal contracting rules have been changed such that they would "exempt overseas contracts from a requirement that the contractor detect and prevent fraud and report it to the government." AP: The United States has spent more than $102 billion over the last five years to help rebuild Iraq and Afghanistan. In that time, the Justice Department has uncovered at least $14 million in contract bribes in those two nations alone.

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Bush Does Battle with Recession, Taking Aim at...

... earmarks ?! In Gail Collins, the New York Times has a first-rate writer and thinker who brings a fresh perspective to her op-ed pieces and seems to approach issues without any ideological bent, axe to grind, or hobby horse to flog. Less of a luminary perhaps in that stable of regular columnists than a Kristol, Krugman, or Kristof but Collins has a secret weapon the others don't: humor. Particularly commendable is last weekend's entry, George Speaks, Badly, a critique of President Bush's speech last Friday to the Economic Club of New York.

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Requiem for A Repeal

Following the flurry of the fourty-four budget resolution amendment roll call votes last week, this much is clear: repeal of the estate tax is now a non-starter in Congress. In years past, the budget resolution vote-a-rama has been an annual rite of repeal for the tax. But unless an amendment on it comes up when the resolution comes out of conference and hits the floor next month, 2008 may well be the first year since the current estate tax law was enacted in 2001 that full repeal of the tax has not even so much as come up for a vote in Congress. That's progress.

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DAILY FISCAL POLICY REVIEW -- Mar. 21, 2008

Economy -- The Metastasizing Recession: Policymakers in Washington face the growing challenge of tracking the shifting contours of the nation's economic slowdown as they attempt to design legislative and administrative responses to it. "The economic downturn is seeping into new parts of the country that seemed insulated only months ago." Times. Graphs.
  • Unemployment Claims at Four-Year High:The number of Americans filing first-time claims for unemployment insurance rose last week and the total number on benefit rolls reached the highest since August 2004. Bloomberg

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$1,000 More Reasons to File

About 1.3 million American are owed an average of $1,000 each by the IRS for unclaimed refunds on their 2004 federal income tax returns, the IRS announced yesterday. To get the refund, taxpayers need to file 2007 returns, giving them another eason to do so, even if they earned no taxable income in calendar 2007. Doing so also qualifies them for a stimulus package rebate check (see our blog on rebate resources).

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