Wall Street Tax Break Comes under Scrutiny

After decades of flying below the radar screen, a tax policy allowing private equity fund managers to claim their fee-based income as capital gains rather than ordinary income has suddenly become the subject of media scrutiny, congressional hearings and legislation. In June, the Blackstone Group, a large private equity firm, went public with an initial public offering, which resulted in billion-dollar profits for the principals. This triggered House Ways & Means Committee and Senate Finance Committee chairs Rep. Charles Rangel (D-NY) and Sen.

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President Promises Slew of Vetoes

As Congress looks forward to the July 4 recess, it continues to fulfill a primary responsibility — passing legislation that funds the activities of the federal government. Five of 12 FY 2008 spending bills have passed the House and await Senate approval. But President Bush has signaled he intends to veto bills that could push spending above the $933 billion cap specified in his budget request earlier this year.

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Portman Out, Nussle Tapped to Head OMB

On June 19, Office of Management and Budget (OMB) Director Rob Portman announced his resignation, effective in August. President Bush has chosen former House Budget Committee chairman Jim Nussle to be the next OMB director — a candidate whose reputation and policy record suggest the White House is prepared to clash with Democrats in Congress, particularly over the FY 2008 budget.

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House Battle over Earmarks Procedure Resolved

A fiercely partisan impasse in the House was resolved on June 14 when Appropriations Chair David Obey (D-WI) and Minority Leader John Boehner (R-OH) reached a comprehensive procedural agreement following months of confusion and vituperation over the chamber's earmarks disclosure and approval process. The agreement outlines rules for consideration of earmarks for the House to follow for each of the 12 FY 2008 appropriations bills and appears to be operating smoothly thus far: on June 21, the House Appropriations Committee approved the lists of earmarks for two spending bills by voice votes.

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Congress Still Struggling to Settle Earmark Disclosure Procedures

Five months after the House adopted institutional earmark reform rules (H. Res. 6) and the Senate passed statutory requirements governing earmark disclosure (S. 1), confusion reigns in both chambers on how earmark disclosure rules will work and who will administer them. Key members of the Senate and House Appropriations Committees have unilaterally altered the rules in the intervening months, and even with appropriations season upon us, it appears the disclosure rules and their application remain in flux.

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Appropriations Season Kicks Off

Congress shifted into full appropriations mode the week of June 4 as both the House and Senate began subcommittee markups of the twelve individual appropriations bills. As the White House and congressional Democrats continue to trade barbs about potential vetoes of spending bills above President Bush's request, the House is scheduled to consider its first four appropriations bills on the floor this week — all of which exceed the president's requested spending levels.

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Congress Passes Supplemental; Cease-Fire in the Capital

The struggle between Congress and the White House over the $120 billion supplemental war funding bill ended last week when, on May 24, Congress sent President Bush a version of the bill that he signed into law. The final bill (H.R. 2206) — the largest supplemental spending bill in the history of the United States — also raises the minimum wage for the first time in over ten years, a fact that seems to have been lost in national news coverage.

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