Smoking Grassley

In a memo to reporters and editors , Senate Finance Committee chair Charles Grassley (R-IA) hailed last week’s CBO report, The Budget and Economic Outlook: An Update — which projected an FY2006 federal deficit of $260 billion -- thusly:

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Katrina and Welfare Links

The Coalition for Human Needs just put up an excellent database of links to resources on Katrina and welfare reform issues. Take a look if you're interested in learning the latest about these milestones in the fight against poverty.

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Watcher: August 22, 2006

Strange Happenings at the IRS Could Affect Enforcement Despite Short-Term Gains, CBO Forecasts Grim Long-Term Fiscal Outlook

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Secret Hold in Senate Blocks Transparency Effort

While the inner-workings of Congress can often be full of illogical, ironic, and bizarre happenings, the latest behind the scenes buzz on Capitol Hill (and in the blogosphere) certainly takes the cake. OMB Watch has been supporting S. 2590 (see here and here for some of the BudgetBlog's coverage), a bill to create a free, searchable, downloadable database of all federal grants and contracts information. This effort is supported by progressives and conservatives, and nearly everyone in between, and has the support of a varied and eclectic mix of Senators.

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More on Marron

As reported here, last week’s description of this year’s federal deficit by CBO Acting Director Donald Marron’s as “sustainable” provoked the ire of Kent Conrad (D-ND), the ranking Senate Budget Committee member, and John M. Spratt Jr. (D-SC), the ranking House Budget Committee member. Maron became Acting director when Douglas J. Holtz-Eakin left at the end of 2005, roughly halfway through his term. Amid the stir raised last week by Marron’s comments, the question was raised regarding the tenure of a CBO acting director.

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Senate Budget Democratic Staff Analysis of CBO Report

The Senate Budget Committee's Democratic Staff has released an analysis of the Congressional Budget Office's August Budget and Economic Update.

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Everson Presses Forward With Privatization

IRS Commissioner Mark Everson is moving forward with his plan to privatize debt collection despite Congressional opposition. BNA (sub. req'd) reports that Everson rejected a request from Rep. Steve Rothman (D-NJ) to cancel the privatization project that's slated to begin in late August or early September. See here for more information about the program. In his response to Rothman, Everson admitted that the program won't be cost-efficient, but contended that Congress and the President have left him no other options.

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Backdoor Medicaid Cuts Possible

The Bush administration is trying to take health insurance away from poor people again, this time by creating regulations that would force states to lower taxes on health care providers. The taxes help states pay for health care services covered under Medicaid, and result in higher matching grants from the federal government. The states effectively offset the cost of the tax with higher reimbursement rates for the taxed health care providers, which are made possible by the federal matching grants. The move is opposed by all the relavant stakeholders, including:

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    OMB Watch in TomPaine.Com

    Our very own Adam Hughes and Craig Jennings have an article on Congress's deficit addiction in today's TomPaine.com. Check it out!

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    CBO's Marron says deficit "sustainable," sparks spat with Spratt & Conrad

    This week, CBO released its initially cheery-sounding report that the federal deficit for 2006 would shrink to $260 billion, from $318 billion last year, the lowest level since 2001. Of course, the gloomier long-term fact is that extending President Bush’s tax cuts beyond 2010 and accounting for war and other hidden costs would add $1.75 trillion in debt over the next 10 years and widen annual deficits by about $250 billion from 2011 through 2016.

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