Commentary: The Case for a Strong Estate Tax

On Capitol Hill, there exists a debate about the future of the Bush tax cuts and the federal estate tax. While President Bush's 2001 tax policy eliminated the estate tax for 2010, it is set to return to pre-Bush tax cut levels in 2011 unless Congress intervenes. How Congress chooses to address the estate tax will have significant implications for the federal budget deficit and the fair distribution of the nation’s prosperity.

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Commission Examines Wartime Contracting and Inherently Governmental Functions

On June 18, the Commission on Wartime Contracting in Iraq and Afghanistan (CWC) held the first of two hearings to examine the proper role and oversight of private security contractors (PSCs) in wartime contingency operations. The commission called six individuals from the private, academic, and nonprofit sectors to testify about the thorny issue of defining and enforcing what should and should not be outsourced to PSCs. While disagreement abounded on the issues, commissioners were able to pick out a few lines of consensus among the witnesses.

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Commentary: The Case for a Second Stimulus

If there's one thing Republicans and Democrats can agree on, it's that the economy has seen better days. Indeed, looking at various employment statistics, it's hard for anyone to express optimism about the nation's economic condition. The national unemployment rate is 9.5 percent, and the number of workers unemployed for 27 or more weeks is at an historic high. The nation's present economic state has provided ammunition to critics who argue that the Recovery Act, the $787 billion package designed to stimulate the economy, has failed. The current economic situation has prompted calls from others for a second stimulus.

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Congress Burdened By Must-Pass Legislation

With fewer than 30 working days left before Congress adjourns for its August recess, the legislative branch is once again faced with a pile of must-pass legislation and a ticking clock. Before the end of 2010, Congress must pass a spate of bills to renew a set of expiring tax provisions, prevent stiff pay cuts for Medicare doctors, fund the wars in Iraq and Afghanistan, and prevent the expiration of the Bush tax cuts for the middle class. Congress is likely to truncate its legislative calendar so that members can return to their districts to campaign for this year's elections, lowering the odds of passing other "big-ticket" legislation like climate change policy and immigration reform.

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Obama Begins 2012 Budget Process with Eye toward Doing More with Less

On June 8, Office of Management and Budget (OMB) Director Peter Orszag rolled out details of the administration's FY 2012 budget guidance for federal agencies. The budget request will again attempt to strike a balance between fiscal austerity and adequate funding for government programs. In addition to the continuance of a three-year freeze on non-security discretionary spending, Orszag revealed two new initiatives that the administration hopes will help agencies achieve more with less: a government-wide initiative to improve federal acquisition and information technology (IT) processes and a requirement for agencies to identify programs that are the "least critical to advancing their agency missions."

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Commentary: Budget Cuts Imperil Vital Federal Role

Around the time that the American Recovery and Reinvestment Act (the Recovery Act) was being developed, a report co-authored by Christina Romer and Jared Bernstein indicated that passage of such an economic stimulus package could avert economic calamity. Yet now, with the unemployment rate hovering close to 10 percent, the president is setting about cutting federal spending by hundreds of billions of dollars in the coming years. The president's cuts are imprudent in the short run, given their potential to smother the burgeoning economic recovery before it can fully take hold, and could impair the federal government's ability to respond to economic or environmental disasters.

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How Would Enhanced Rescission Authority Affect the Budget Process?

The Obama administration recently caused considerable controversy when it sent a proposal to Capitol Hill on May 24 asking for enhanced authority to cut spending already approved by Congress. Fiscal hawks like Rep. Paul Ryan (R-WI) hailed the president’s proposal for "enhanced rescission authority" as "an important tool to target wasteful spending," while congressional appropriators from both parties argued that the proposal would give the president too much power over the spending process. Questions remain about the proposal's potential effects on deficit reduction.

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