CBO Again Finds Fiscal Policies Unsustainable

The recently updated Congressional Budget Office (CBO) Budget and Economic Outlook shows no significant improvement in the long-term fiscal health of the nation. In fact, the nonpartisan agency that provides Congress with budget and economic analysis found the situation worsening and reiterated that the current structure of taxation and spending is simply unsustainable.

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Final Budget Bill Passed; Tax Bill Sent to Conference

A little over a month into 2006, Congress continues its effort to finish extraneous budget reconciliation bills from 2005. The reconciliation bills, which were laid out nearly a year ago in the April budget resolution, took up much of Congress' already-limited time last fall and winter and have laid out a number of extremely irresponsible fiscal policies.

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Congress to Have Short Year; Appropriations Work Likely to Suffer

Each year the congressional leadership is responsible for setting Congress' legislative calendar, and this year that calendar will be tightly packed with the smorgasbord of issues Congress must tackle in the coming months. The legislative work Congress fails to finish, however, may be what makes headlines in 2006. This year boasts the fewest legislative days for Congress in twenty years, and this compressed election-year schedule is sure to make finishing appropriations bills before the end of the fiscal year on Oct.

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Initial Analysis of the President's 2007 Budget

The president's Fiscal Year 2007 (FY 07) budget would set the nation on a dangerous fiscal path and does nothing to honestly address the federal government's looming budgetary challenges. The budget--totaling $2.77 trillion--would make permanent the president's first-term tax cuts, which primarily benefit the wealthy, and pay for those cuts in part by cutting some entitlement programs and drastically reducing domestic discretionary spending (outside of homeland security and defense).

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You're Doing a Heckuva Job, Georgie: Debunking the State of the Union

In his Jan. 31 State of the Union address, President Bush spoke on many issues vital to the country including foreign policy, the economy, and health care. As is often the case in the annual address, the president offered far fewer specifics and suggested fewer solutions than many Americans would have liked to hear. Still, the president did manage to articulate a few specific points, some suggesting policies and others spinning the facts. To follow is a look behind a few of the more misleading statements made by the president in the address.

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Still Fewer Heirs Will See Fortunes Taxed in 2006

On Jan. 1, the value of assets that can pass tax-free from one generation to the next rose from $1.5 million to $2 million (or $4 million per couple), an increase that was scheduled under the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), passed by Congress in 2001. This expansion of tax-free inheritance means an even smaller fraction of a percent of Americans will be subject to the tax in 2006.

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Without Addressing Budget Process, Lobbying Reform Doomed to Fail

Since lobbyist Jack Abramoff pleaded guilty to charges of conspiracy, mail fraud and income tax evasion, Democrats and Republicans have eagerly jumped on the lobbying and ethics reform bandwagon. Amid the flurry of proposals to overhaul Washington's lobbying system, however, one of the primary mechanisms through which lobbyists see their influence pay off--the system of budget earmarks--has been largely ignored.

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