President Closes Contractor Loophole

When President Bush signed into law the Heroes Earnings Assistance and Relief Tax Act (HR 6081) on Tuesday, he forced domestic firms employing workers through off-shore shell companies to pay payroll taxes when performing work on federal contracts. The provision in the bill uses language from the Fair Share Act (HR 5602). Writing on Womenstake, the National Women's Law Center blog, Joan Entmacher notes that Bush signed the bill despite its inclusion of the Fair Share Act language.

read in full

War Supp: What's Up with That?

Hoyer eyeing Thursday for House vote; GI Bill offset included (Updated below) By cancelling approps markups this week, House Majority Leader Steny Hoyer (D-MD) has cleared the deck for floor consideration of that chamber's latest revision of the war supplemental spending package. With the exception of additional funds for midwest region's recent flooding disaster (speculation is $2 billion-ish), the House bill is shaping up to look pretty much like the original sent to the Senate oh-so-long ago:
  • Fulfillment of the remaining war funding request for FY 2008 and part of FY 2009

read in full

GAO Upholds Boeing Protest over Tanker Contract

Breaking news from the Government Accountability Office related to the much-hyped $35 billion refueling tanker contract that the Air Force awarded to a Northrop Grumman/EADS partnership earlier this year (see BudgetBlog coverage here, here, and

read in full

House Approps Subcommittee Boosts IRS Funding, Takes Aim at Private Debt Collection

The House Appropriations Financial Services Subcommittee approved, by voice vote, a $22.4 billion bill that would provide funds for the Treasury Department and the District of Columbia. Included in the measure is $11.4 billion for the IRS, a slight increase over the president's request and over $300 million more than the current budget. And while the IRS' enforcement budget allotment matches the president's request -- a respectable 7 percent increase over current levels --, the committee saw fit to raise Bush's $2.15 billion request for taxpayer services funding by $60 million.

read in full

Plus Ca Change All Over Again on Extenders

McConnell, Kyl, & Grassley Browbeat Biz-Boys The Senate again today defeated a cloture motion (to permit voting) on the bill to extend a raft of popular tax breaks, by a vote of 52-44.

read in full

Pentagon Removes Impediments to Flushing Cash Away

Writing in The New York Times, James Risen brings us an astonishing article on the circumstances surrounding the firing of the Army official in charge of overseeing the KBR contract in Iraq. It's not only galling to read that the chief of the Field Support Contracting Division of the Army Field Support Command Charles M. Smith was sacked because he refused to approve payment for unsubstantiated work by KBR, but it's a sharp reminder of how the current level of Iraq contracting has lead to billions and billions of wasted federal funds. Army auditors had determined that KBR lacked credible data or records for more than $1 billion in spending, so Mr. Smith refused to sign off on the payments to the company. "They had a gigantic amount of costs they couldn't justify," he said in an interview. "Ultimately, the money that was going to KBR was money being taken away from the troops, and I wasn't going to do that." But he was suddenly replaced, he said, and his successors — after taking the unusual step of hiring an outside contractor to consider KBR's claims — approved most of the payments he had tried to block. That's awful. But, the Army's rationale for making sure the cash spigot flows unabated signals even deeper problems with Pentagon procurement.

read in full

DAILY FISCAL POLICY REPORT -- June 17, 2008

Unemployment -- House To Keep UI in Supp.; Senate in Limbo: House Democratic leaders will include a provision extending unemployment insurance in the pending war supplemental appropriations bill, scrapping an idea to drop the provision that came from an effort to reduce the domestic funding portion of the package and avoid a veto from President Bush. This morning, Senate Republican blocked Majority Leader Reid's request that the Senate consider a free standing UI Extension. AP Story.

read in full

Senate Extenders Cloture Re-Vote Imminent

If at First You Don't Succeed... Last week, a bid by Senate Majority Leader Harry Reid to invoke cloture (to stop debate and allow voting) on the Senate tax break extender bill fell short by ten votes (see background squib). But it appears that the Senate will vote on the cloture motion again later this afternoon.

read in full

DAILY FISCAL POLICY REPORT -- June 16, 2008

Supplemental -- House Aims to Pass Bill by July 4: The House floor may see key action this week toward passage of the war spending supplemental package covering the costs of the Iraq and Afghanistan wars for the rest of FY08 and into FY09. The bill has been delayed as Democrats have sought consensus on whether expanded veterans benefits, extended unemployment benefits and other domestic spending provisions will be attached and offset. Speaker Nancy Pelosi (D-CA) said last week that Congress will have the bill ready for the president's signature by July 4.

read in full

Approps Update

House Approps Committee Releases 302(b)s; Byrd Announces Markup Schedule The House Appropriations Committee has released its 302(b) allocations. House FY 2009 302(b) Allocations (discretionary budget authority; excluding emergency funding unless otherwise noted; in billions of dollars) FY 2009 Proposed Allocations Defense $487.737 Homeland Security 39.900 Homeland Advance Appropriations: BioShield 2.175 Military Construction & Veterans Affairs 72.729 Subtotal, Security-Related 602.541 State & Foreign Operations 36.620 Agriculture 20.623

read in full

Pages

Subscribe to The Fine Print: blog posts from Center for Effective Government