BULLETIN: OMB Director Portman Resigns

OMB Director Rob Portman has resigned "for personal reasons," to be replaced by former House Budget Committee chair James Nussle (R-IA). See this wire service story. Details as they become available.

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Carried Interest

The New York Times has carried three stories of interest in the last week on ... carried interest. See here, here, and especially here. The issue of the tax rate applied to fee compensation for hedge fund managers has, hitherto, attracted little attention outside a small circle in the financial sector and tax policy makers, but that may be changing. Finance Committee chair and ranking member Sen. Max Baucus (D-MT) and Charles Grassley (R-IA) introduced a bill last week that seeks to reform corporate taxation practices. As the Times explains:

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New Earmarks Procedure Approved by House

Casey Stengel, once asked about an unorthodox baseball strategy, replied, "Well, they say it couldn't be done, but it don't always work." Yesterday, the House formally approved new earmarks rules, permitting points of order on appropriations conference reports if new earmarks have been added during conference. After only twenty mintues of debate following such a point of order, the House will vote on whether to consider the conference report.

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Fantasy Tax Policy: AMT Without Offsets

Some anti-tax groups and the Wall Street Journal are teaming up to promote a tantalizing tax policy: AMT repeal not subject to pay-as-you-go budgetary rules. Per The Hill, heavy hitters including the U.S. Chamber of Commerce, the National Association of Manufacturers, the Business Roundtable and Americans for Tax Reform, managed by activist Grover Norquist, are lobbying the Senate Finance Committee.

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Is Inequality Unfair?

A final note on the Hamilton Project paper. A little less doom and gloom, this time. Inequality, and the decoupling of productivity gains and growth in the median income, has not caused the Hamiltonians to reconsider their core beliefs about markets. They are generally concerned that living standards have not improved as much as one would expect, given productivity gains. But they do not draw from this well-known trend that there is anything either ineffective or unfair about how the market operates.

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Earmark Agreement Achieved: Earmarking Credit

Rep. David Obey and the bipartisan House leadership deserve credit for arriving at an agreement yesterday regarding earmark procedures for most of the FY 2008 spending bills to come before the House floor over the next several weeks and months, providing that members will have the opportunity to review and amend such earmarks as they deem fit.

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Approps Update: House Passes Homeland Security

CQ($) The [Homeland Security appropriations] legislation which passed 268-150 included Republican amendments adding funds for border fencing at the expense of the Homeland Security secretary's administrative budgets and a ban on funding implementation of new passport requirements for Western Hemisphere travelers. [...] Overall, the bill would provide $37.4 billion to the Homeland Security Department in fiscal 2008. Of that, $36.25 billion would be discretionary spending, $2.1 billion, or 6 percent, more than President Bush requested, and $4.3 billion, or 14 percent, more than in fiscal 2007.

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Sorry, More on Hamilton

Boy, this Hamilton Project paper is fascinating. Here's another paragraph to examine. It's a window into the values of the centrist economist. At some point inequality in outcomes becomes so great that the quintessential American promise of equality of opportunity becomes unattainable. As Bradford DeLong (2007)

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Approps Tracking

To keep you up to date on the status of the appropriations process, we'll update and post the following chart indicating the status of each of the 12 federal spending bills. Each column represents a gatekeeper in both chambers for each bill - the responsible appropriations subcommittee, the full appropriations committee, and the full chamber. A green box indicates that the respective body has approved the bill and is awaiting approval of the next body. The number in each box is the dollar amount in billions that the body has appropriated.

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President Drops Veto Threat, Seeks Offsets on Mil Con

But Senate Appropriations Omits Offsets in 28-1 Vote As we surmised last week, President Bush has dropped his long-standing threat to veto any FY 2008 appropriations bills that exceed the amounts he has requested, agreeing to sign a Military Construction-VA bill that provides $4 billion more than he has sought, so long as the $4 billion difference is accompanied by "reductions in other appropriations bills to offset this increase," according to Wednesday's

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