Public Citizen Charges Americans for Job Security as Nonprofit Front

Public Citizen filed a complaint with the Internal Revenue Service (IRS) and the Federal Election Commission (FEC) against Americans for Job Security (AJS) asserting that the organization's primary purpose is to influence elections. Therefore the organization should not be eligible for 501(c) non-profit tax status, and should instead be required to register as a political committee. Public Citizen is requesting the IRS to revoke the group's status as a nonprofit, collect back taxes on undeclared electioneering activities, and pay penalties for violating its tax exempt status.

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OIRA: "Freakonomics to the 10th Power"

Yesterday, the Senate Appropriation Committee held a hearing to examine the budget of the White House Office of Management and Budget (not the federal budget, but the budget of OMB itself). During the hearing, Subcommittee Chairman and Senate Majority Whip Dick Durbin (D-IL) questioned OMB Director Rob Portman on a number of issues.

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Disclosure Functions as Big Brother??

CongressDaily ($$) reports that Democratic leaders plan to move quickly on lobbying and disclosure legislation when the House returns from its recess, and a bill is expected to be introduced later in April. One major flashpoint in the debate is whether to require individuals or groups to disclose attempts to motivate grassroots activity on issues. Opponents of the provision hope to replicate the success they had during the Senate debate, when they succeeded in stripping a provision requiring disclosure of so-called Astroturf lobbying.

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Controversy Surrounding Voting Fraud Report

The New York Times reports that the Election Assistance Commission (EAC), responsible for conducting nonpartisan election research, down played the findings of experts that there was modest voter fraud around the nation. The EAC instead issued a report that concluded "there is a great deal of debate on the pervasiveness of fraud in elections as well as what constitute the most common acts of fraud or intimidation." The released report endorses justifications for voter identification laws and the assertion made by Republican politicians that voter fraud is pervasive.

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WSJ Profile: Maverick Max of Montana

A must-read examination of the challenges facing Senate Finance Committee chair Max Baucus (D-MT) appears in today's Wall Street Journal. Baucus is currently playing a pivotal role in several significant issues, as we have noted, from AMT to S-CHIP, to the minimum wage small business tax, to the estate tax -- taking sometimes sharply ideologically inconsistent positions, harking back to his support for the 2001 Bush tax cuts, which "infuriated other Democrats."

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Executive Abuse and the Constitutionality of Recess Appointments

In today's issue of Roll Call, Norm Ornstein — a political pundit and scholar at the conservative American Enterprise Institute — articulates a rather damning assessment of recess appointment power (reprinted on the AEI website). Ornstein points out the danger of precedent in forming executive power. He then calls for Congress to stand up against President Bush's most recent batch of recess appointments including that of Susan Dudley. Every time a president abuses a power like this one, stretching the circumstances under which he will use recess appointments, it becomes a precedent for his successors, who will use his actions as a base point to stretch the power even further. The more the power is used with impunity, the more the core principles of the separation of powers are eroded. So what is a Congress to do? The only answer is to use its own powers to make clear to the president that there is a cost, and a serious one, to such behavior. Specifically, Ornstein suggests hitting the White House and these illegitimate appointees where it hurts: in the wallet. Congress could easily withhold the salary and other perks from embattled former nominee Sam Fox, and otherwise "make White House operations more difficult without cutting essential services." Ornstein also suggests this whole recess appointment mishigas is unconstitutional. In addition to the explicit language of Article 2 Section 2 Clause 3, Orstein cites America's original political genius, Alexander Hamilton. In Federalist paper No. 67, Hamilton articulates the caution with which America should consider the power of the recess appointment.

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Independent Sector Asks for Higher IRS Budget

Independent Sector sent a letter to the House and Senate Appropriations Subcommittees with jurisdictions over the Internal Revenue Service (IRS) urging for an increased budget for the IRS given the increased changes made to tax laws governing exempt organizations. According to the letter:

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How Good Was the Post-WW II era?

Craig excerpts an interesting article below that reminds us that there was once a time when the median wage tracked productivity- or, as I like to think, a time when people were paid what they earned.

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Many Groups May Switch Tax Status

Roll Call ($$) reports that the group Club for Growth has switched its tax status from a 527 to a 501(c)(4), a section of the tax code used by social welfare organizations. In defending the change, the organization's president, former Representative Pat Toomey (R-PA), cited increased scrutiny on 527s by the Federal Election Commission (FEC). The group will now be allowed to spend an unlimited amount on lobbying expenditures.

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Transparency of OMB Meetings under Fire

Ellen Smith, editor of Mine Safety and Health News, has an opinion piece in today's North County Gazette (NY). The issue is private OMB meetings that too often include special interests and shut out the American public. Smith argues these meetings result in biased decision-making placing Americans (in her example miners) at risk. More important is the loss of transparency in the decision-making process — a fundamental democratic right. Read the column here.

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