Keeping Government out of the Boardroom

This week, the White House issued a statement asserting its opposition to the right of shareholders to voice an opinion about the way the companies they own should be run. The president takes issue with Rep. Barney Frank's (D-MA) Shareholder Vote on Executive Compensation Act (H.R. 1257), which "would require that public companies ensure that shareholders have an annual nonbinding advisory vote on their company's executive compensation plans."

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OMB's Portman Still Drinking the Kool-Aid

Rob Portman is in the Hill today, doing his best to spin the Congressional budget resolutions. One of his comments stands out: I'm disappointed that the budget pays for all that new spending with taxes, which I think will put at risk the very economic growth that has given us the increased revenues over the last few years to be able to reduce the deficit.

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Baucus Confirms $5 Bn. Min Wage Tax Cut 'Ballpark'

Senate Finance chair Max Baucus (D-MT) has indicated that he and House Ways and Means chair Charles Rangel (D-NY) are looking at a minimum wage small business tax package "in the ballpark" of $5 billion over 10 years, confirming our report earlier this week. Similarly, Baucus and other leading Democrats have decided that the war spending supplemental is the best vehicle for passing the minimum wage and its attendant tax breaks. "More often than not, the rider needs a strong horse. The supplemental is strong, the minimum wage is strong," Baucus said.

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Breaking - Doolittle Steps Down from Approps Committee

Rep. John Doolittle (R-CA), whose home was recently raided as part of an FBI investigation to his ties to convicted lobbyist Jack Abramoff, has resigned his seat on the House Appropriations Committee. AP: Rep. John Doolittle, whose house was searched by the FBI in an influence-peddling investigation, said Thursday he will step down temporarily from the House Appropriations Committee.

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Requiem for Departing IRS Commissioner Mark Everson

While at his new job with the Red Cross, may he find redemption for the following:
  • Implementing a program to privatize tax debt collection
  • Privatizing regulations
  • Offering early retirement to estate tax auditors
  • Potentially politicizing tax collection (see OMB Watch's

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Records for the Record

Tuesday was Tax Day, and if anything it' a reminder that, as Americans, we're all united by at least one thing: a four-digit number, "1040." That's right - even the president and vice president are just like everybody else on Tax Day.

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Question of the Day

What remains now on the war funding front is to await the promised Bush veto of the record-sized supplemental appropriation bill Congress is expected to send to the president in the next week or so. Meanwhile, echoing the sentiment we expressed last week: Since the funding conditions may well, for all we know, end up as ignorable timetable "goals," it seems that the president is jumping the gun in issuing veto threats... Rep. James Moran (D-VA) asked this question yesterday:

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Paulson's Paultry Portfolio: the Tax Reform Gap

In addition to his demurrer on the tax gap, as Matt notes below, Treasury Secretary Henry Paulson also begged off yesterday on another matter of tax policy that had been a major Bush administration priority, telling the Senate Finance Committee: There isn't a major tax reform proposal being put forward now, and I don't see that on the dockets in the near future. So much for all that brave talk out of Congress about fundamental tax reform that we noted earlier this year, and the (now-languishing) recommendations offered in November 2005 by the president's own tax reform advisory commission.

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Tax Gap Fever

Treasury Secretary Henry Paulson thinks we have no choice but to let people evade taxes, apparently. Having just paid my taxes, I find that a little annoying. In testimony before Congress yesterday, Paulson made a case for restraint in closing the the tax gap, which is a sanitized way of putting the annual total of tax evasion, avoidance and errors (noncompliance, in tax speak). IRS estimates the tax gap to be at $353 billion a year, or about 16 percent of total taxes owed. So why can't we go after this money? Here's Paulson:

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Withdrawal Date Debate: View from the Ground, Gates

More than anything else, the sticking point in today's discussion about the war spending supplemental appropriations bill at the White House involved the timetable for the withdrawal of U.S. soldiers on the ground. President Bush and House Minority Leader Boehner (R-OH) argued con and Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV) pressed the pro line, but those on the ground spoke loudest of all. As Bloomberg reported today:

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