Via Kevin Drum, we may now know why CBO found an unexpected drop in Medicare spending this year. Actual spending hasn't gone down. Rather, the Bush administration is waiting until next fiscal year to pay some of its bills from this year. That way, some of the spending on services performed this year will get counted in the FY07 budget. And when the CBO puts out its FY07 budget projection, there'll be no pesky election to worry about. Here's an excerpt from a great article on the scheme, from Barron's (sub. req'd).

Tomorrow morning at 10 a.m., the Census Bureau will release its annual report card on the nation's economic well-being, with a consolidated report on personal income, poverty health insurance coverage and other data for 2005. Last year, the New York Times reported, was the first time on record that household incomes failed to increase for five straight years. Median pretax income, $44,389, was at its lowest point since 1997, after inflation. And OMB Watch noted that poverty rose for the fourth straight year. Will these sad trends continue?

Yesterday, the U.S. House Government Reform Committee’s Minority Staff Special Investigation Division released a report on waste, fraud and abuse in procurement spending in response to Hurricane Katrina. The report, requested by Reps. Henry A. Waxman, Dennis A. Cardoza, David R. Obey, John S. Tanner, Eleanor Holmes Norton, and John F. Tierney, examines 19 Katrina contracts, collectively worth $8.75 billion, with significant overcharges, wasteful spending, or mismanagement.

As reported today by BNA, the IRS issued two announcements regarding its private debt collection program, due for launch on September 7: -- one outlining taxpayer protections under the program -- the other identifying ways for taxpayers to avoid scams perpetrated by private collection agencies (PCAs) or those impersonating the IRS. We