War Supplemental Bill Becoming a Budget Bomb

Congress and President Bush have been taking turns adding to what what started out a $99.6 billion supplemental appropriations package. This weekend, Bush formally requested an additional $6.3 billion in spending (mostly for 4,400 new troops to be deployed in the "surge"). This amount, C-Span reports, Bush wants "offset by cuts ... from domestic appropriations made in the fiscal 2007 continuing resolution."

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Changes to the Combined Federal Campaign Charity Drive

The Office of Personnel Management, which administers the Combined Federal Campaign (CFC) charity drive in government offices, has decided to drop a requirement that charities spend no more than 25 percent of their total revenue on administrative and fund-raising expenses. Charities that exceeded the cap were required to give the OPM a reason, which the agency said was an administrative burden. Senator Charles E. Grassley (R-IA) sent a letter to President Bush expressing his concern about this rule change.

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6 Degrees of Privatization

The contractor at Walter Reed who's taken much blame for the wretched conditions there is tangled up in IRS privatization, too. Unbossed has the story.

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Why the Bush Health Care Plan Won't Work

Nathan Newman at TPM Cafe has a good post on health care costs. His most topical point is that the Bush health care tax package, which is ostensibly intended to reduce health care costs through financial incentives for health care consumers, is hopelessly misguided and beyond repair. Most health care spending occurs among a small minority of spenders who receive very expensive, intensive care that they likely see as not being optional. Incentives one way or the other probably won't make much of a difference.

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White House Blocks OMB Earmark Website Launch

In an embarrassing reversal of its promise (reported here) to have a full searchable database of all FY 2005 earmarks on line by today, the Office of Management and Budget (OMB) has announced that it will release information today only on the aggregate number and cost of earmarks from that year.

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Senate Amendment on Material Support Defeated

While the outcome of S.4, the Senate bill to implement 9/11 recommendations, continues to be murky, one important amendment was defeated today in a vote of 49-46. This package of amendments offered by Senator Cornyn (R-TX) S.AMDT.312 included a measure that would have further expanded the definition of material support. Written so broadly, it could have made it a crime for individuals, including Americans and US aid and relief organizations to give charitable assistance to a family member or anyone who might live next door to a suspected terrorist.

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Policy Efficiency: Min. Wage vs. Tax Credits

During the long pause between introduction of the minimum wage hike legislation in Congress and its (presumed) eventual passage, we have time to reflect on its efficiency vs. tax credits as a means of increasing the income of low-wage workers. The issue has arisen as some policymakers have wondered if expanding the Earned-Income Tax Credit might not be a more efficient means to this end. A recent treatment of the subject by Max Sawicky of the Economic Policy Institute, A Fish is Not a Fowl, walks us through almost every aspect of the trade-off, reaching this conclusion:

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IRS to Privatize Regulation

Ace investigative tax reporter David Cay Johnston has tracked down another ridiculous IRS proposal: outsource the writing of IRS regulations to the people they regulate. Check out the story in today's New York Times. Money quote (from our executive director): Looking at the issue in its broadest terms, Gary D. Bass, executive director of OMB Watch, a nonprofit research and advocacy organization that tracks the Office of Management and Budget, warned that the Bush administration was turning over too much government responsibility to those it is supposed to be keeping an eye on.

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Waxman Introduces Contract Reform Bill

Rep. Henry Waxman (D-CA), chairman of the House committee on government reform and oversight, has introduced a bill that would go a long way toward reforming the contracting process. The bill would make publicly available more information on contracts, fix parts of the contracting process that have been exploited by wasteful contractors, and move towards closing the revolving door between government employees and contractors. We look forward to see where Waxman takes this bill. Meanwhile, check out FedSpending.org for the most comprehensive data set out there on government contracting.

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Outsourcing Regulations

Today, The New York Times published a story documenting a recent and disturbing trend in government: allowing the regulated to write regulations. The story begins by detailing an IRS program in which tax lawyers and accountants are encouraged to draft rules on behalf of IRS. These tax professionals — who make money by finding new ways to reduce their clients' tax burden — will now formulate the regulations they will later be subject to. I challenge you to find a better example of a conflict of interest. The IRS program is merely the tip of the iceberg. The article goes on to broadly discuss the outsourcing of regulations: It is common for special interests of all types to be closely involved in drafting legislation and shaping rule making. But in recent years there has been a quickening pace of moves to outsource the actual work of regulation, hiring contractors to write the rules. Considering, as the article states, "Rule making is the heart of what Washington does," one would think federal regulators would take the process seriously. Instead, the federal government is passing the buck, then allowing industry to pocket it.

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