Economy -- Latest Data: Inflation Up, Earnings Down

• Inflation Up in March: BLS data show consumer prices advanced 0.3 percent in March; energy was up 1.9 percent while food ticked up 0.2 percent. Over the past 12 months, inflation is up 4.0 percent (less food and energy, 2.4 percent)
• Average Weekly Earnings: The BLS is also indicating that real (inflation adjusted) average weekly earnings were up 0.2 percent Feb. to March. Year-over-year, real average weekly earnings are down 1.0 percent, continuing their downward trend.

Taxes -- IRS Tax Collection Program A $$-Loser: A front-page story in today's Washington Post reports that Collectors Cost IRS More Than They Raise. The IRS' program using private tax collectors has brought in about half of what it has cost the IRS to implement the program. Debt collectors have pocketed commissions of up to 24 percent. "This program is the hood ornament for incompetence" said Sen. Byron L. Dorgan (D-ND). Expected losses: $37 million. Story.

Housing Crisis -- Senate Passes Package: A bill to provide $13 billion in tax breaks for businesses and homebuyers, $6 billion in renewable energy tax credits, $4 billion for cities to purchase and rehabilitate foreclosed properties, $150 million for mortgage counselling, and $30 million for legal assistance for homebuyers passed the Senate 84-12 yesterday. Only the last two of these provisions was offset. There is no companion piece in the House and the president said he opposes it.

Budget Resolution -- Blue Dogs Say PAYGO or No-Go: In an April 4 letter to the House and Senate Budget Committee Chairs and ranking members, 26 deficit-hawk Blue Dog Democrats said that a budget resolution must "include deficit-neutral AMT relief through reconciliation language and any stimulus package be fully offset [or it] will meet our firm opposition on the House Floor." Given the five-vote margin of victory for the House resolution last month, a defection by 26 Democrats would almost certainly doom the prospects for an FY 2009 budget resolution.