House Panel Hears Testimony on IRS Policies

On March 13, the House Ways and Means Subcommittee on Oversight heard testimony concerning the 2008 tax return filing season, Internal Revenue Service (IRS) operations, the Fiscal Year 2009 budget proposals, and the National Taxpayer Advocate's Annual Report to Congress. Then-Acting Commissioner of the IRS Linda Stiff testified, and Nina Olson, the National Taxpayer Advocate, pressed for reforms that would both protect taxpayer rights and improve tax enforcement.

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GAO Report Examines Overuse of Supplemental Spending

In a recently released report, the Government Accountability Office (GAO) examined ten years of supplemental spending (FY 1997-FY 2006) and found not only a five-fold increase in the amount of expenditures funded through the supplemental process, but also that procedures that enable legislative deliberation are bypassed when Congress funds government operations through supplemental spending. Supplemental spending has become an alternative funding process, parallel to the normal annual appropriations process. This allows certain expenditures to elide close congressional and public scrutiny and allows Congress to escape debate over federal funding priorities.

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Bills Improving Federal Contracting Gain Momentum

In FY 2007, the federal government paid contractors about $420 billion to provide thousands of goods and services, but it had little insight into whether those companies were delinquent in paying their federal taxes, had broken contracting rules or laws, or if those firms paid top-level executives exorbitant levels of compensation. However, if several proposed bills become law, these obstacles to oversight and transparency will be greatly reduced. H.R.s 3033, 3928, and 4881 were approved by the House Oversight and Government Reform Committee the week of March 10, while H.R. 5602 and a companion Senate bill were introduced the same week.

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Budget Resolution: Recap and the Road Ahead

Late on March 13 and early in the morning of March 14, the House and Senate adopted $3 trillion budget resolutions for Fiscal Year 2009 by votes of 212-207 and 51-44, respectively. While the resolutions are similar in terms of broad policy outlines and priorities, they differ on a few major points, including the total amount of discretionary spending and whether to offset the cost of a one-year patch to the Alternative Minimum Tax (AMT).

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FY 09 Budget Resolution: Goals, Strategies, and Challenges

The House and Senate Budget Committees will soon turn to the congressional budget resolution for Fiscal Year 2009. The draft versions of the budget resolution, to be offered by House Budget chief Rep. John Spratt (D-SC) and Senate Budget head Kent Conrad (D-ND), are likely to be considerably different from President Bush's unrealistic budget proposal submitted to Congress in February.

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Assessing the Fiscal Stimulus Package

President Bush signed a two-year, $168 billion fiscal stimulus package on Feb. 13 — the largest legislative initiative ever designed to ease an economic slowdown. Although it was passed by overwhelming margins in the House (385-35) and Senate (81-16), there was considerable debate on how to structure the package so as to maximize its efficacy and stimulative impact on the economy.

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Emergency War Spending Lacks Transparency, Increasingly Used for Non-Emergency Items

The Bush administration's emergency supplemental spending requests for the wars in Afghanistan and Iraq have lacked the transparency that normally accompanies the appropriations process, according to a new report from the Congressional Budget Office (CBO). In addition, the CBO war spending report, however constrained by available data, revealed the composition of the war funding requests has been evolving into broader Defense Department spending initiatives, such as acquiring next-generation aircraft and replacing aging aircraft.

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