The Center for Effective Government (formerly OMB Watch) ceased operations as of March 2016. The majority of work and materials has been passed on to the Project On Government Oversight (POGO). This site is being maintained as an archive of materials produced.
A significant and pernicious problem facing the nation is the tax gap, the difference between what is owed in taxes and what is paid. Estimated to be over $300 billion annually, the tax gap represents an enormous revenue loss for the government. This lack of revenue often causes unnecessary increases in annual deficits and the national debt, increasing national interest payments and adding pressure to cut vital government services. Unfortunately, much of the gap must be made up eventually by honest taxpayers through higher taxes and by beneficiaries of federal investments through service cuts. Bridging the Tax Gap: The Case for Increasing the IRS Budget illustrates some of the factors that perpetuate the tax gap and offers practical solutions to the problem.
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Yesterday, the Des Moines Register published an op-ed calling for greater online access to government information. The op-ed is written by Jerry Brito, a research fellow at George Mason University's conservative-minded Mercatus Center (the former home of OIRA administrator Susan Dudley).
The release of dismal national jobs data on Jan. 4 has prompted rumblings from politicians in Washington about the need for an "economic stimulus package." On Jan. 7, President Bush and Treasury Secretary Henry Paulson delivered separate speeches on the state of the economy, in which they addressed the basic outlines of a fiscal policy designed to mitigate the effects of a possible recession. Bush announced he is taking a stay-the-course approach while economists from across the political spectrum are calling for some type of stimulus package. The president could still offer a plan in his State of the Union speech at the end of January.
On Dec. 31, 2007, President Bush signed the OPEN Government Act (S. 2488), which includes long-sought reforms of the Freedom of Information Act (FOIA). Though some important provisions were dropped in order to reach bipartisan agreement in Congress, the bill creates incentives to reduce agency backlogs of FOIA requests, increases reporting requirements, and increases the scope of who can make requests and what entities are covered by FOIA.
The U.S. Environmental Protection Agency (EPA) issued a Dec. 28, 2007, proposal in a second attempt to exempt farms from reporting air pollution caused by animal waste and to reduce information available about toxins at the local level.
Despite a record number of consumer product recalls in 2007, Congress adjourned in December without agreeing on legislation to restore the federal government's safety system. The House passed new legislation that would vastly improve the Consumer Product Safety Commission's (CPSC) ability to regulate unsafe products. Weaker Senate legislation was blocked by a lack of bipartisan agreement.
The Bush administration rejected an attempt by California and several other states to combat global warming by placing a cap on greenhouse gas emissions from vehicles. Stephen Johnson, head of the U.S. Environmental Protection Agency (EPA), announced the decision Dec. 19, 2007. Environmental advocates and members of Congress have sharply criticized the decision, and several states have already filed suit in federal court hoping to overturn it.
On Dec. 20, 2007, the Internal Revenue Service (IRS) released the final version of its updated Form 990, the informational return for public charities and other tax-exempt organizations. The new form marked the first revision since 1979 and will be used for the 2008 tax year (returns filed in 2009). The IRS expects to release draft instructions for the 2008 Form 990 later in January. Although the new Form 990 incorporated many suggestions made in public comments on the draft version, the IRS did not make key changes to clarify and simplify reporting of advocacy-related activities.
On Dec. 28, 2007, the U.S. Court of Appeals for the Seventh Circuit overturned a $156 million judgment against several U.S.-based charities accused of supporting terrorism. The court ruled that the 2004 award against several charities that required payment of damages to the family of David Boim, who was shot to death in the West Bank in 1996 in an attack attributed to Hamas, must be based on evidence that the charities were directly connected to the murder. The case was sent back to the lower court where there may be a new trial. The case could have a significant impact on the long-term fate of charitable funds seized by the government as part of its financial war on terror.
A significant and pernicious problem facing the nation is the tax gap, the difference between what is owed in taxes and what is paid. Estimated to be over $300 billion annually, the tax gap represents an enormous revenue loss for the government. This lack of revenue often causes unnecessary increases in annual deficits and the national debt, increasing national interest payments and adding pressure to cut vital government services. Unfortunately, much of the gap must be made up eventually by honest taxpayers through higher taxes and by beneficiaries of federal investments through service cuts. Bridging the Tax Gap: The Case for Increasing the IRS Budget illustrates some of the factors that perpetuate the tax gap and offers practical solutions to the problem.