DAILY FISCAL POLICY REPORT -- June 2, 2008

Congress returns to session today, starting in on a number of key legislative priorities with important fiscal policy implications that leadership hopes to complete before the July 4 recess. Among them, from most to least likely to see action this week:

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Controversial Medicaid Rule Nixed by Court

A federal court has sent back (vacated and remanded, in regulatory-speak) to the Bush administration a rule aimed to limit government reimbursement for Medicaid providers. The rule is one of several the administration is attempting to codify in an effort to undermine the entire Medicaid program. The process by which the Centers for Medicare and Medicaid Services finalized the rule was particularly sneaky, even by Bush administration standards. A New York Times editorial explains:

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Five Years of Bush Tax Cuts, Another Five Years Increasing Inequality

When the Treasury Department released a stack of propaganda analyses yesterday on the 2001-2003 Bush tax cuts, they also promulgated a press release to accompany their reports. While their message was nothing more than years-old, warmed over talking points, it has provided yet another opportunity to talk about the continual deepening of income inequality in the United States.

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Looking at Taxes in a Hysterical Perspective

Yesterday was apparently the fifth anniversary of a momentous occasion in American history. And another day in infamy approaches. On the off-chance that Americans somehow overlooked the fact that noteworthy tax legislation was signed by President Bush on May 28, 2003 -- and this blog stands guilty on that score -- the administration saw fit to mark the moment with a flurry of papers and pronouncements, including:
  • a historical perspective
  • various and sundry Tax Relief Topics
  • a helpful Fact Sheet
  • and a press release

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DAILY FISCAL POLICY REPORT -- May 29, 2007

Economy -- It's Not A Recssion, per CEA Chair: Edward Lazear, chairman of the Council of Economic Advisers, said yesterday that, of the five measures the private National Bureau of Economic Research uses to date the start and end of recessions, only one--sales in retail and manufacturing--"are declining at rates commensurate with prior recessions." Recent job losses are at "less than half the rate that prevailed during the mild recession of 2001." Payrolls have declined four months in a row.

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Pentagon IG Report Exposes Cost of Contracting

The good folks at POGO have come into the possession of one Defense Department Inspector General's report published in March of this year. This report was at the center of a congressional hearing that was commented on by Stan Collender in a blog post (and WaPo story) we flagged yesterday. And according to the report:

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Hi (Economist) Mom!

I just wanted to alert readers of a new blog we've been reading: EconomistMom - "where analytical rigor meets a mother's intuition." Authored by economist and mom Diane Lim Rogers of the Concord Coalition, the blog's "particular focus [is] on the economics of fiscal responsibility," but Rogers also writes about broader issues. She's been on a roll lately, explaining the trap of the "largest tax increase in history" rhetoric, expressing frustration about the 'extenders' tax cuts, and righteously high-fiving Steven Pearlstein for his column that connects the dots of the various

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DAILY FISCAL POLICY REPORT -- May 28, 2008

Economy -- Consumer Confidence Drops to 16-Year Low: The Conference Board Consumer Confidence Index, based on a representative sample of 5,000 U.S. households, fell to its lowest level since October 1992.

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House Launches "Fighting Contracting Abuse" Caucus

CongressDaily is reporting ($) that a few members of the House of Representatives are forming the "Smart Contracting Caucus" to pursue what Rep. Tom Davis (R-VA) called "thoughtful federal procurement reform." But Dan Friedman at CongressDaily isn't buying the spin:

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Collender: Pentagon IG Report Signals Fraud

Federal budget sensei Stan Collender reads this WaPo story on the mismanagement of $15 billion Iraqi reconstruction funds and wonders if something more than incompetence isn't at work. The Pentagon's own inspector general confirmed that this lack of concern for procedural safeguards was blatant and commonplace. That makes it hard to come to any conclusion other than that they were ignored rather than expedited or poorly executed.

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