Internet Access Tax: Inquiring Minds Want to Know

Please help me out here. See, there's a $100 billion dollar industry in the United States that has enjoyed a federally-mandated moratorium on sales taxes for over a decade, arguing that unless the moratorium is made permanent, small retailers will have a hard time competing against the big, bad guys. As Brian Bieron, the senior director of government relations at eBay, said, fewer small businesses and customers would use the Internet if the ban expires: "That means fewer sales and less opportunity to compete with the mega-retailers."

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Bill to Hold Contractors Accountable for Crimes Passed

The House overwhelmingly passed a bill that would make it legal to try contractors in U.S. courts. See the Washington Post for details.

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War Tax: It's Inevitable

In a blog post last week, I wrote that "no politician worth their salt will support a massive progressive tax increase to pay off all the debt generated by the war." We here at OMB Watch believe in holding people accountable, so here goes: I was wrong. Rep. James McGovern (D-MA) has basically done just that, and he is a politician "worth his salt" (full disclosure: he's the co-chair of the board of the Congressional Hunger Center, which runs an amazing fellowship that first got me to Washington). He writes in the Boston Globe today:

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How Many Votes Are Really Needed to Override The President's SCHIP Veto?

There seems to be some confusion in the press over how many votes will be needed to override President Bush's veto of the SCHIP bill. It's pretty much basic arithmetic. There are 435 members in the House. You need a 2/3rds majority of all voting members to overide a veto. So at most, 290 members will have to vote to override. That's all we know for sure.

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Even Bad Contractors Get New Contracts!

U.S. PIRG released a new report today that profiles how contractors who have poor performance or fraudulent practices can still receive new contracts from the federal government. The report profiles companies such as Bank of America, General Electric, Lexis-Nexis, Kellogg, Brown, and Root, and Northrup Grumman, among others. An excerpt from the report's executive summary: The rapid increase of federally contracted dollars—100 percent since 2000—makes outsourcing the fastest growing component of discretionary spending. The government's preference for using outside contractors to provide goods and services makes careful scrutiny of the process and the decisions more important than in the past. At present, loose rules, lack of competition, and limited accountability permit so-called 'bad actors' to receive contracts that put taxpayers and our money at risk. It's a very interesting report and I'm sure, as they imply, these examples are just the tip of the iceberg. Also of note, they use FedSpending.org for their contracts data - very cool! U.S. PIRG: Forgiving Fraud and Failure: Profiles in Federal Contracting

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Compare and Contrast

You wouldn't believe it from the deft strokes of his veto pen, but President Bush is the very same president who signed into law the massive Medicare prescription drug benefit. Let's compare that bill with the recently vetoed SCHIP bill: Program 5-Year Cost (billions of dollars) Fully Funded? Vetoed? Medicare prescription drug coverage 268.7 No No SCHIP Expansion 34.9 Yes Yes (click to enlarge)

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Samuelson Watch

This week's Samuelson Watch is outsourced to Matthew Yglesias:

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Bush Vetoes SCHIP

It hasn't been reported yet, but we're hearing that Bush has vetoed the SCHIP bill. Update: Here's the AP story. Update: The House may vote to override the veto on October 17th.

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Boehner Incensed Taxpayers Have to Fund Bush's War

via CQ($): Responding to Congressional appropriators' suggestion that an income tax surcharge might be used to pay for future operations in Iraq and Afghanistan, a livid House Minority Leader John Boehner (R-OH) played the "partisan" card to avoid making fiscally responsible decisions about war spending. Raiding every taxpayer's wallet for the purposes of playing politics with our national security amounts to some of the most irresponsible public policy I've seen in a long, long time.

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The Ball Is In Your Court, Mr. President

The SCHIP reauthorization has been sent to the President for his signature. Will he help give 4 million more children health insurance, or will he try to deprive them of it? Well, don't just sit there. Tell the President to sign it!

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