A Senate bill would reset the maximum amount taxpayers pay government contractors for their employees’ compensation back to its original level, adjusted for inflation, and would change the formula for determining future increases in this level. This is commonly referred within government and contracting circles as the contractor compensation cap.

Hundreds of millions of dollars per year could be saved if Congress lowers the maximum amount the government reimburses contractors for their employees’ compensation, according to a new report released yesterday by the Government Accountability Office (GAO), Congress’ investigative arm.

The first major spending bill with significant cuts for the coming year was released this week. The bill, which funds energy and water programs, cuts funding for those programs by about 10 percent.

Overall, the bill provides $30.4 billion, $2.9 billion less than fiscal year 2013 (before sequestration) and $4.1 billion below the president’s request.

The White House released a four-step National Action Plan this morning, June 18, outlining an initiative to tackle tax evasion and money laundering. The plan reflects an international initiative agreed upon by the U.S. and seven foreign governments at a G8 Summit being held in Northern Ireland.