CBO's Monthly Budget Update - July 2007

The federal government incurred a deficit of $123 billion for the first nine months of fiscal year 2007, CBO estimates, $83 billion less than the shortfall recorded during the same period in 2006. Revenues have risen by more than 7 percent, whereas outlays have grown by less than 3 percent. Both rates of growth are noticeably smaller than the rates of increase in fiscal years 2005 and 2006, which averaged about 13 percent for revenues and close to 8 percent for outlays. (click on CBO logo for report)

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FEC to Consider Two Campaign Financing Decisions

On July 11 during a public hearing the Federal Election Commission (FEC) is set to consider a regulation on "hybrid ads," to possibly allow political parties help finance the television advertising of campaigns. The proposed new FEC rule would allow a party to pay for up to 75 percent of any candidate's advertising costs. The hybrid ad rulemaking came up after the Bush-Cheney '04 campaign used Republican National Committee funds to pay over $40 million in ads. The Campaign Legal Center and Democracy 21 filed comments with the FEC on the proposed rulemaking.

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EPA Delays Recycling Rule, White House Lurks in the Shadows

EPA is putting the brakes on an important recycling rule, according to BNA news service (subscription). The rule has been in the works for well over a year, and EPA recently indicated it would announce a proposed rule this fall. Now, EPA says it will issue only an Advanced Notice of Proposed Rulemaking, a sort of baby step in the regulatory process.

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San Jose Lobbying Law Violates Free Speech? Where Have I Heard that Before ... ?

The San Jose Mercury News reports that environmentalist Ted Smith, founder and senior strategist for Silicon Valley Toxics Coalition sued the city of San Jose, California charging that its expanded lobbying definition of who must register, pay fees and report activities is so broad it violates free-speech rights. As many other candidates nationwide, San Jose Mayor Chuck Reed's victory in November was in part due to an ethics reform agenda, and Reed commented on the importance of promoting a transparent government. "I don't see how it affects anybody's free speech.

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Up With Bureaucrats

EPI's Max Sawicky on why fewer bureaucrats isn't more: We always celebrate the sacrifices and contributions of our military men and women, and rightly so. But why not the less dangerous but often saintly deeds of the rest of our public servants? If you favor less government, maybe you enjoy excoriating "government bureaucrats," but are you cutting your nose to spite your face?

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Are Congress's FDA Reform Efforts in Vain?

Today, The Washington Post published a good article by David Brown which discusses Congress's recent efforts to renew the Prescription Drug User Fee Act and to reform drug safety at FDA. The must-pass legislation will improve FDA's ability to conduct post-market surveillance. While FDA needs more authority in this area, the article rightly points out post-market surveillance is "the regulatory equivalent of chasing the horses after they are out of the barn."

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Critiquing the Critic

There was a time when I thought Louis Menand, an academic who writes for the New Yorker, was the smartest guy around. But I've changed my mind, because his review of Bryan Caplan's really ridiculous book is abysmal and totally misses the point. To recap Caplan's argument: Irrational voters support economic policy that makes people worse off. And government mostly messes everything up (See here for more). Menand's conclusion:

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Case on Political Advertising Sent Back to Lower Court After WRTL Decision

Following the U.S. Supreme Court ruling in the Wisconsin Right to Life (WRTL) case last week, on June 29 the Court sent back another case (Christian Civic League of Maine Inc. v. Federal Election Commission) to the lower court for a new ruling consistent with the WRTL June 25th decision. The Christian Civic League (CCL) had asked the Supreme Court to hear an appeal of a lower court's ruling that dismissed its challenge to restrictions on funding of political ads under the Bipartisan Campaign Reform Act (BCRA).

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House Moves to Curb Bush Regulatory Power Grab

Last week, the House passed the Financial Services and General Government Appropriations bill (HR 2829). The bill contains an amendment which would forbid the White House from expending any funds in implementing President Bush's recent changes to the regulatory process.

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IRS Phone Forum on Form 990 Changes

The Internal Revenue Service (IRS) will be hosting two 60 minute phone forums on the redesigned Form 990. The forum will include a presentation of the changes and the reasons for each change. Comments and questions on the new form will be requested from participants and some will be answered during the session. The session on July 18, 2007, is scheduled for 10:00-11:00 a.m. and the session on July 19, 2007 is scheduled for 1:00-2:00 p.m. (Eastern Daylight Savings Time). For more information and to register, click here.

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