House to Vote Tomorrow on $463.5 bn. FY2007 "CRomnibus"

House Appropriations chair Rep. David Obey (D-WI)'s fiscal 2007 budget bill, H. J. Res. 20, filed late Monday, provides for $463.5 billion in spending. It complies with the statutory ceiling on spending; it also declares that earmarks it may contain "shall have no legal effect," though "ongoing" earmarks contained in bills prior to FY06 can continue. The bill is expected to reach the House floor for a vote on Wednesday (tomorrow).

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Senate Hearing Affirms Congress's War Powers

Constitutional scholars agree: Congress has the power to shape war policy. Army Times has more. A panel of constitutional scholars said Tuesday that Congress clearly has the power, if it chooses to use it, to stop the war in Iraq. The difficulty in exercising the power is political, not constitutional, in getting a veto-proof majority in the House and Senate to agree on binding legislation to either cut off funding for combat operations or repeal the previously passed authorization to use force, the legal experts said in testimony before the Senate Judiciary Committee.

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IRS Failing to Control Political Speech within Churches?

An op-ed in yesterday's USA Today "Turning a blind eye, IRS enables church politicking" disapproves of the way the IRS is handling a supposedly growing number of churches that do not comply with the ban on endorsing candidates or political parties. The article notes that 40 churches were investigated for activity during the 2004 election season and not one had its tax-exempt status revoked.

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Projections and Prophecy

Sen. Kent Conrad (D-SD) must be getting bored. He's been having hearings on long-term fiscal issues, but pretty much every speaker has been saying the exact same thing: there's huge problems in Social Security, Medicare, and Medicaid, so we better start cutting benefits, and maybe find a way to raise revenues.

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Explanation of Policy on 527s

The Federal Elections Commission (FEC) was reportedly still working last week on a document that explains its position on the way it handles complaints against 527 groups. Lawyers for the FEC are scheduled to go in front of a judge tomorrow to do just that, describe how the agency plans to handle 527 groups in the 2008 campaign. Representatives Shays and Meehan filed a lawsuit against the FEC that sought stronger regulation of these groups.

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NY Times and Washington Post Cover Bush Regulatory Amendments

Almost two weeks ago, President Bush amended the federal regulatory process in an attempt to delay regulations and take power out of Congress's hands. Now, the mainstream media has picked up the scent. A front page story in today's New York Times and a column in today's Washington Post both cover the story.

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Long-Term CR Ready

The Democrats have unveiled their long-term CR proposal. Looks like they've made the best out of a bad sitution. From AP: Democrats unveiled a $463.5 billion catchall spending bill late Monday to boost funding for community health centers, lower-income college students and efforts to combat AIDS overseas — while sticking within the confines of President Bush's tight constraints for the ongoing budget year.

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Give With One Hand, Take With The Other

The Center on Budget and Policy Priorities has an big-time paper out on entitlement costs and the budget, where they both move forward the debate over future fiscal problems, and move it back. Laudably, they dispel the myth that there is an "entitlement" crisis. Many entitlement programs are actually going down in costs and getting more efficient. Just because the program is an entitlement doesn't mean it's got problems.

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Optimal Targeting of Tax Policy: Credits vs. Deductions

Last week, the Center on Budget provided an important reminder that most of the nearly $1 trillion in tax expenditures in FY 2006 took the form of deductions rather than credits and that "tax deductions are larger for households in higher tax brackets or with higher deductible expenses -- and may be nonexistent for households that take the standard deduction or have no income tax liability."

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Genuine Lobbying? Connecting Grassroots Lobbying Disclosure and Wisconsin Right to Life Court Challenge

An article in the National Journal ($$), "A Two-Front War Over Lobbying", makes the very interesting point that lobbyists are pleased in light of grassroots lobbying disclosure falling from the Senate ethics and lobbying reform bill. The article pairs the loss of grassroots lobbying disclosure and the Supreme Court's decision to take up the Wisconsin Right to Life (WRTL) case as both key victories for lobbyists. Thematically the two issues concentrate on the regulation of political speech and advocacy.

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