By a voice vote, the the House Oversight and Government Reform Committee approved a bill (HR 5712) that would close a loophole in the Federal Acquisition Regulation (FAR) that excuses federal contractors working overseas from reporting fraud. The loophole was inserted into the federal procurement rules and was published in November of last year as part of a contracting oversight measure. Called a "drafting error" by GSA chief acquisition officer David Drabkin, the loophole exempts companies performing federal contracts overseas from mandatory reporting of employee contract fraud.

"Pick on Someone Your Own Size!" The New York Times business section story today, Wall Street Winners Get Billion-Dollar Paydays, addresses the fortunes of "[h]edge fund managers, those masters of a secretive, sometimes volatile financial universe, [who] are making money on a scale that once seemed unimaginable, even in Wall Street's rarefied realms," mentions that the top 50 hedge fund managers last year earned a combined $29 billion, and goes on to quote William H. Gross, the chief investment officer of the bond fund Pimco: There is nothing wrong with it — it's not illegal... But it's ugly.

Tax Act Would End IRS's Private Debt Collection Program After fending off an effort to attach an immigration provision, the House passed HR 5719 by a vote of 238-179. The bill would end the IRS's private debt collection (PDC) program if signed into law. It was this provision and a proposed change to the rules of health savings accounts (HSAs) that drew vocal opposition from Republicans. While the fortunes of the bill in the Senate are uncertain -- Sen. Charles Grassley (R-IA) is a staunch supporter of the PDC initiative -- The House vote indicates an override of a veto is unlikely.

President Bush has threatened to veto HR 5719, the bill recently approved by the House Ways & Means Committee and expected to see House floor action today. The bill would end the IRS's private debt collection (PDC) program, require that disbursements from health savings accounts (HSAs) be substantiated (i.e. require submission of receipts), and implement a bevy of other tax policies.