Watcher: November 7, 2008

Tax Policy on the Campaign Trail Congress Continues Insufficient Oversight of Contracts

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Fed Bank President Concerned by Rising Inequality

BNA ($): San Francisco Federal Reserve Bank President Janet Yellen urged lawmakers in a Nov. 6 speech to address the causes of income inequality and strengthen the social safety net as part of a long-term effort to protect the economy and U.S. democracy. [...]

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Next War Supplemental Reported to be Enormous

In a continued effort to totally ignore Congress's request to fund the wars in Iraq and Afghanistan through the regular annual appropriations process, the Defense Department is in the process of constructing a new supplemental funding request for the wars for FY 2007 - reported to be a whopping $160 billion. Combined with the current $70 billion FY 2007 apporpriations for Iraq and Afghanistan, the United States could spend $230 billion on the wars by the time this fiscal year ends next September. That's approximately half of the total spending on the wars so far!

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Public Opinion: Investment over Tax Cuts

Via a great blog called The Inclusionist, The Center for American Progress has put out a review of public opinion surveys that reflect changing opinions on the economy. One interesting finding: generally, American public opinion trends optimistic when it comes to personal prospects for getting ahead, and pessimistic in terms of the economy as a whole. The dual nature of this economic viewpoint may be summarized as follows. I. When it comes to their own individual and family situations, most people say that they are succeeding (and expect their kids to succeed), thanks to their hard work and personal sacrifice in the face of great obstacles. This allows them to tell a story where they and their families are the heroes and where their difficulties redound to their credit. II. But, when they talk about how the economy is actually performing for “people like me” or for the entire nation or for the next generation as a whole, people are more forthright and forthcoming about the challenges that they themselves face. Now, they are not pitying themselves, but rather expressing concern for their children, their friends, their neighbors, their co-workers, and their fellow citizens.

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Big Profits for Big Pharma

Recently, defense contractor Lockheed Martin reported that it was making handsome profits at taxpayer's expense. In similar spirit, several pharmaceutical companies have reported huge profits as well, in part due to new business from the federal government. The now-online Medicare drug benefit, which does not let the federal government negotiate prices with drug companies, has provided much of the boost.

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Time for Miracles?

In an op-ed today in the San Fransico Chronicle, Bill Frenzel and Leon Panetta call for a "Budget Summit" to hash out the difficult budget issues:

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Spending Investigators Speak After Dismissal

You may recall that the House Appropriations Committee decided that the sixty-year-old team in charge of conducting oversight of government spending was no longer "good." CQ reports today that some of those fired investigators are now defending themselves from Committee spokesperson John Scofield’s charge that "the work [they’ve] been getting as of late has not been that good." CQ ($):

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Lockheed's Profits and Budget Priorities

Lockheed Martin, the nation's biggest government contractor, recently announced that its third-quarter profits topped $600 million. Let's assume the vast majority of that profit was earned on government contracts (a fair assumption since Lockheed receives more than two-thirds of its annual revenue directly from the government). Under our assumptions and extending out their quarterly profits - Lockheed will make about $2 billion in profit on government contracts this year. For perspective, that $2 billion is roughly equal to:

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    A New Direction on Tax Policy?

    Today's Washington Post profiles a House race in Connecticut where the Republican incumbent, Rep. Nancy L. Johnson, is hitching her candidacy to tax cuts. Problem is, nobody seems to care.

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    GAO to Investigate Interior's Royalty Program

    Some good news: The Government Accountability Office (GAO) will be investigating the Interior Department's decision to drop claims that Chevron has been cooking the books, as well as the entire program for oil royalty collection. And let's give credit where it's due, as the Republican leader of the House Government Reform Committee, Darrel Issa (R-CA), ordered the investigation.

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