Earmarks -- House Cmte. Chair to Ignore Bush Order: Earlier this year, the president issued an Executive Order barring government agencies from using funds for earmarks added in House and Senate committee or conference report instead of the original bill's language. Per House Armed Services chair Ike Skelton (D-MO)'s spokeswoman: the "committee does not believe and does not acknowledge the president's assertion that report language should have no weight. The president's executive order would tear away years of history and tradition concerning the relationship between Congress and the Department of Defense." Story. Budget Resolution -- On Eve of Vote, a Tax Dispute: With a vote on final passage expected for the FY09 budget resolution this week, a difference of opinion about it persists. Senate Budget Committee ranking member Judd Gregg (R-NH): "It includes the largest tax increase in history." Center on Budget: "This year's budget plan does not include a tax increase. It actually calls for a $340 billion reduction in revenues, reflecting its assumption that Congress will extend some parts of the 2001 and 2003 tax cuts without offsetting the costs." CBPP Statement. Taxes -- Baucus Open to Paying for Extenders: Following a meeting with House Ways and Mean chair Charles Rangel (D-NY), Senate Finance Committee chair Max Baucus (D-MT) said of the tax changes to the treatment of deferred compensation paid by managers of offshore hedge funds and the delay for nine years the implementation of the worldwide interest allocation rule -- which Rangel proposes to use to pay for his extenders bill: "I think those are plausible offsets." But Baucus' extenders package is broader and provides for two-year extenders; Rangel's are for one year. Contracting -- Fair Share Act Attached to Veterans Tax Bill: Yesterday, the House passed (403-0) a tax bill aimed at veterans and servicemembers (HR 6081) that includes language from the Fair Share Act of 2008 (HR 5602). The Fair Share Act would prevent US firms working on federal contracts and employing American workers through foreign shell companies from avoiding paying payroll taxes. The measure had been approved by the House in April when it passed The Taxpayer Assistance and Simplification Act of 2008 (HR 5719) in April.