2006 Fiscal Policy Year in Review: Process Failures, Budgetary Gridlock

2006 was a busy year in federal fiscal policy. As in 2005, the regular budget process broke down almost entirely, increasingly urgent issues were neglected, and much time and attention were devoted to consideration of items and priorities seen by many as insignificant and misguided.

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Attempts to Roll Back, Delay Regulatory Protections Common in 2006

Throughout the past several years, attempts to roll back regulatory safeguards and delay new rulemaking have been common. 2006 proved to be no different, and several important issues garnered attention. Among these were sunset commission legislation, the nomination of Susan Dudley, and proposals to further complicate the regulatory process.

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Latest Watcher

Be sure to check out the latest issue of our biweekly newsletter, The Watcher. Reg policy articles this time: Supreme Court Wades Through Decision on Climate Change FDA Negotiates Increase in Drug Industry User Fees

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Watcher: December 5, 2006

Lame Duck Session Holds Little Hope for Appropriations Bills Alternative Minimum Tax Likely to be Large Issue in 2007

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EPA Drops Plan to Change TRI Reporting Frequency, Major Flaws Remain

In light of the midterm elections and ongoing pressure from the current Republican controlled Congress, the U.S. Environmental Protection Agency (EPA) is changing its views on some plans for the Toxics Release Inventory (TRI), the nation's premiere environmental right to know program. EPA has announced it will retain annual reporting of toxic pollution, dropping its proposal to shift reporting to every other year.

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Terrorism Information Sharing Initiative Faces Several Hurdles

The Director of National Intelligence (DNI) submitted the Information Sharing Environment (ISE) Implementation Plan to Congress in November. Through changes in policy and technology, the plan articulates a multi-year vision for improving terrorism information sharing across the federal government and between foreign, federal, state and local governments, as well as key members of the private sector.

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Pelosi and Reid Promise Increased Congressional Transparency

The new Democratic leadership in Congress is urging transparency as a primary tool to reform the legislative process. According to statements from incoming House Speaker Nancy Pelosi (D-CA) and incoming Senate Majority Leader Harry Reid (D-NV), the leadership is planning several new rules and pieces of legislation on tracking earmarks, requiring time to read proposed legislation, and media access to conference committee activities - all with a central theme of increased congressional transparency.

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Alternative Minimum Tax Likely to be Large Issue in 2007

The continuing creep of the Alternative Minimum Tax (AMT) is threatening to impact tens of millions of Americans in 2007 - a fact that will push it to the forefront of tax policy issues. In 1995, 414,000 wealthy tax payers paid the Alternative Minimum Tax (AMT), and in 2001, that number grew to 1.3 million. Unless Congress acts, 23.4 million Americans are expected to be snagged by this "stealth tax" in 2007, which was originally intended to affect only 20,000 wealthy taxpayers.

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Lame Duck Session Holds Little Hope for Appropriations Bills

The congressional lame duck session resumed Dec. 5 as the 109th Congress returned to work on a set of long-deferred tax and budget items. However, Congress will likely postpone action on the bulk of these issues until the next session and quickly pass a continuing resolution (CR) that will last until early 2007. The Budget

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Supreme Court Wades into Climate Change Debate

The U.S. Supreme Court heard oral arguments November 29 on the U.S. Environmental Protection Agency's (EPA) authority under the Clean Air Act to regulate carbon dioxide and other greenhouse gases (GHG) in new cars and trucks. The case, Massachusetts v. EPA, marked the first time the Court has heard arguments related to climate change. The Justices appeared most interested in whether the petitioners had standing to bring the case, and the Court spent little time on regulatory and environmental questions.

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