Honey, Did You Pack the Veto Pen?

President Bush will not want to leave for weekends in Crawford this summer without his veto pen. Yesterday, his OMB Director Rob Portman renewed his threats to veto any appropriations bill that exceeds the budget request the president submitted to Congress in February. On May 11, Portman had warned only that the president would veto any spending bill not on a "sustainable path" to complying with the president's $933 billion total discretionary spending limit.

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Put that Burger Down and Get Out of Your SUV!

Since it's Friday and we've had a slow week here at the Budget Brigade, I wanted to put up a little light-hearted reading today. Enter this article from The Hill newspaper about an effort by the advocacy group People for the Ethical Treatment of Animals (PETA) to give a tax credit to - get this - vegetarians. The logic goes like this. According to researchers at the University of Chicago, becoming a vegetarian would reduce carbon emissions 50 percent more per person than switching to a hybrid car. This certainly seems logical since a recent U.N. report cited the livestock industry as "one of the top two or three most significant contributors to the most serious environmental problems, at every scale from local to global," including global warming. One problem though. Let's suppose you stop eating meat - no more steak dinners at Morton's, sausages on the grill, or chicken burritos at Chipotle. How much will your individual decision in this case actually reduce the level of activity of the livestock sector? How many fewer cows, chickens, pigs, etc, would be slaughtered and shipped around the country? Probably not too many. The estimates of reduction in emissions from this choice is an aggregate number - the average of each meat-eater's contribution to the emissions of an entire industry - not the actual reduction by each individual's decision to stop eating meat. To have an actual impact on emissions, a large enough number of meat-eaters would have to act in conjunction with each other over a long-enough period of time to be able to shrink the size of the livestock sector. Given that meat consumption has doubled over the last fifty years, my guess is you'll have to convince a whole bunch of your friends to join you at the salad bar. A hybrid car, on the other hand, actually reduces your own physical emissions immediately. You don't have to wait for your neighbor to trade in his Hummer for a Prius for your individual decision to make a (albeit very small) difference. I'm not saying I think you should keep eating meat - that's really up to you. I just wanted to point out the relative benefits of a tax credit for hybrid cards vs. for being a vegetarian. Besides, this line of thinking probably isn't that important anyway beacuse I don't think you could really implement this type of credit - how in the world would the government be able to verify that you, in fact, had not eaten meat?

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IRS Questions Political Activity of Kansas Church

The Wichita Eagle reports that the Internal Revenue Service (IRS) has asked Pastor Mark Holick of Spirit One Christian Center in Wichita Kansas to answer thirty one questions about political activities at the church. The questionable activities include the pastor distributing voter guides and messages on the church's marquee critical of candidates and their position on abortion. Holick has scheduled a news conference today at the church to discuss the issue.

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Administration Drops Opposition to Data Collection Program

About a year ago, we reported on the administration's opposition to continued funding of the Survey of Income and Program Participation, or "SIPP." SIPP, you may recall is an ongoing program that ""collect[s] source and amount of income, labor force information, program participation and eligibility data, and general demographic characteristics to measure the effectiveness of existing federal, state, and local programs." It is an indi

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EPA Asbestos Panel Should Stay Insulated from Industry

EPA is considering appointing Dennis C. Paustenbach to the asbestos panel of its Science Advisory Board. According to the Environmental Working Group (EWG), Paustenbach has made a career out of defending corporations in asbestos exposure suits. Agency panels and committees, such as EPA's Science Advisory Board, are important tools for regulatory decision-makers. Panels are supposed to consist of impartial experts who can provide valuable scientific and technical advice.

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OECD Report: Inequality Threat to Propsperity

The Organisation for Economic Co-operation and Development released its biannual Economic Survey of the United States this week. The report itself will make for good summertime reading on the beach, but it's mention of income inequality makes it especially exciting. Policies and global trends that have made the economy more open, flexible and dynamic — thereby boosting productivity and overall prosperity — may have increased inequality. If unaddressed, concerns about inequality have the potential for eroding support for such policies.

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Identifying the Drug Safety Problem at FDA

An article in today's New York Times follows up on the controversy of another botched FDA drug approval (Avandia). With an unfortunately large number of case examples to study, drug safety experts and lawmakers are beginning to come to a consensus on the nature of the problem at FDA.

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"Charities Must Challenge Politicians"

Robert Egger, president of D.C. Central Kitchen and a leader of the Nonprofit Congress, has written this must read article from the Chronicle of Philanthropy ($$). Egger demands that the nonprofit sector no longer responds passively to a lawmaking process that has no charitable influence. Nonprofits have a responsibility to be vocal during any election.

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Senators Call for Updated Form 990, a Seemingly Opportune Time

Senator Max Baucus (D-MT) has made another noteworthy formal communication to Treasury Secretary Paulson, this time along with ranking Finance Committee member Charles Grassley (R-IA). The leaders of the Senate Finance Committee have urged Treasury to update Form 990, the federal tax form nonprofits file each year to report tax information, so that the financial operations of nonprofits can be better understood. There is a particular focus of concern on scrutinizing hospitals and universities.

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More on the Inherent Superiority of Government

A follow-up post to the one on Bryan Caplan's assault on government: I think I may have confused what normal people mean by efficiency with what economists mean by efficiency- that is, an efficient decision is one whose benefits exceed both the opportunity and out-of-pocket costs. Caplan, I presume, means that government services let people consume irrationally. People don't have to pay for the service, so they consume more than they would otherwise. This is irrational, I guess.

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