DAILY FISCAL POLICY REPORT -- April 4, 2008

Economy -- 240,000 jobs lost 1st Qtr. of 2008: The Labor Department announced today that the economy shed 80,000 jobs in March, the biggest monthly decline in five years; the total job-loss figure for the first quarter of the year was about 240,000. Unemployment jumped from 4.8 percent last month to 5.1 percent. Story.

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Don't Judge Pig Book by its Cover

On the one hand, the Citizens Against Government Waste (CAGW) Pig Book is a useful service providing a full accounting of earmarks adopted by Congress and stuck in the FY 2008 budget. Among the leading fun facts, the FY2008 budget includes :
  • 11,610 earmark projects worth $17.2 billion
  • 337% increase over the 2,658 projects in fiscal year 2007
  • 30% increase over the $13.2 billion in fiscal year 2007

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Quotation of the Day

Classic Senate... Easy to reach compromises when you agree to everyone's tax cut without paying for them. There is no need to make choices or decide whether the tax cut is worthwhile if we don't have to pay for it. -- Anonymous House Democratic leadership aide, regarding Senate housing stimulus package

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DAILY FISCAL POLICY REPORT -- April 3, 2008

Housing/Stimulus -- Senate Readies Its Package: Senate leadership announced late yesterday that a compromise had been reached between Sens. Chris Dodd (D-CT) and Richard Shelby (R-AL) on a stimulus package nominally targeted to the nation's slumping housing sector. Banking, Housing & Urban Affairs Committee chief Sen. Max Baucus unveiled a tax title to the housing bill. Cost: $10.8 bill. Offsets: none.

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Tax Title of the Senate Housing Stimulus Bill

Help me out with this one... This is pretty peculiar. The Senate Finance Committee announced today a set of tax relief provisions "for homeowners, homebuyers, and homebuilders," to accompany the Senate housing stimulus package. A vote on the title and the bill could come as early as tomorrow. The provisions are described, with estimated costs, here, and summarized below:

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    The Executive Casino: Risk-Free Gaming

    This Tom the Dancing Bug cartoon is a great illustration of the incentives that motivate executives. (The image below is one panel of the full, four-panel comic.) (Click to see the full comic)

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    DAILY FISCAL POLICY REPORT -- April 2, 2008

    Housing Stimulus -- Possible Senate Vote on Dodd-Shelby: A Senate vote on the Dodd-Shelby housing stimulus bill may come as early this afternoon, pending negotiations by Sens. Chris Dodd (D-CT) and Richard Shelby (R-AL), chair and ranking member of the Senate Banking, Housing, and Urban Affairs Committee. New York Times: Regarding the bipartisan support for the bill, Senator Majority Leader Harry Reid : "This is not April Fool's," he said. "This is serious business."

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    Taking Aim at Foreclosures: Is Senate Bill on Target?

    If Banking, Housing, and Urban Affairs Committee Chair and Ranking Member, Sens. Chris Dodd (D-CT) and Richard Shelby (R-AL), respectively, can hammer out a compromise by tomorrow morning, the Senate may vote as early as tomorrow afternoon on a housing stimulus package that purports to address the alarming increase in the number of foreclosures in the U.S. "[F]oreclosures of this magnitude are on par with the severity of foreclosures during the Great Depression," said Dodd in a Senate floor statement today.

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    GSA Suspends IBM from Federal Contracting

    Reuters: SAN FRANCISCO (Reuters) - IBM is under investigation by the U.S. Environmental Protection Agency over an $80 million bid it made in 2006 to modernize EPA financial systems and has been suspended from seeking new contracts with all U.S. agencies, the company said on Monday. ... International Business Machines Corp, the world's largest provider of computer services, said it only learned on Friday of the temporary suspension from the Environmental Protection Agency (EPA) tied to possible violations of ethical bidding provisions on an EPA contract IBM had submitted in March 2006. ...

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    The Paulson Plan: Multiple Choice, Missing the Mark

    The response to the financial institution regulatory reform proposal introduced yesterday by Treasury Secretary Hank Paulson has been striking. The U.S. Chamber of Commerce and the American Bankers Association, small banks and state attorneys general, left-leaning economists and analysists, and members of Congress, even the man with the max Street cred, Jim "I reiterate -- I am embarrassed by these guys. Thank heavens, no matter who wins the White House, they will soon be gone" Cramer, have trashed the plan unceremoniously.

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