Commentary: In Case of Bailout, Break Glass for Transparency

With the unpopular bank bailout, the Troubled Asset Relief Program (TARP), coming to a close, policymakers should begin looking back at the program to glean lessons from its creation and execution. When TARP was created by an act of Congress in 2008, the imperative was speed, not transparency. Unfortunately, that lack of transparency and other problems plague the program nearly two years later.

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Commentary: Did OMB Block Worst-Case Estimates of Oil Spill?

A working paper by the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling has ignited a controversy about the role of the White House Office of Management and Budget (OMB) in controlling information about the spill. The working paper alleges that, soon after the April 20 explosion of BP's Deepwater Horizon rig, OMB blocked plans to disclose the government's worst-case models of the spill. The administration's response to the allegations leaves several key questions without clear answers, which can only be resolved by disclosing the drafts and feedback through which these critical documents were developed.

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Transparency Survey Offers Mixed Results for Federal Government

A recent transparency survey of more than 5,000 Americans found that more than three-fourths gave the government low scores (59 or lower out of 100), and only seven percent rated the government as highly transparent (a score of 80 or higher). The White House received the highest transparency score in the study, and Congress received the worst score among government entities. However, limitations of the study make any final judgment on the success or failure of the government’s transparency efforts difficult.

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Will Code of Conduct Clean Up Security Contracting Field?

In November, more than 20 private security contractors (PSCs), along with representatives from various governmental and non-governmental organizations (NGOs) from around the world, will come together in Geneva, Switzerland, to sign the International Code of Conduct for Private Security Service Providers. The code aims to "set forth a commonly-agreed set of principles for PSCs and … establish a foundation to translate those principles into related standards as well as governance and oversight mechanisms." Because the code’s "oversight mechanisms" remain undetermined, questions linger about the effectiveness of another self-policing policy for the private security industry.

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Chinese Drywall Manufacturer Agrees to Help Rebuild Homes

One of the Chinese companies that manufactured drywall used to rebuild homes around the Gulf Coast after Hurricane Katrina has agreed to help pay for the repair of 300 homes. The legal agreement, which establishes a pilot program in four states, results from claims that the drywall emitted substances that corroded and destroyed pipes, wiring, and alarm systems.

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No Taxation without Information

The idea of providing taxpayers with an itemized receipt for their income taxes was recently proposed by Third Way, a center-left think tank. The proposal, which is not entirely new, has attracted considerable commentary. However, there are significant challenges to creating a simple and engaging taxpayer receipt that would provide meaningful transparency for federal spending.

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Commentary: The Case of the Misunderstood Bailout

Currently, it's hard to find a federal program more unpopular than the Troubled Asset Relief Program (TARP), the bank "bailout" passed in the waning days of the Bush administration. Poll after poll shows that the public does not support the bailout, and politicians, especially ones up for reelection, have picked up on this trend and frequently denounce the program. And yet, by many objective measures, the bailout could be considered a success: it helped avert financial calamity, it will cost a fraction of its original estimates, and TARP’s bank provisions will likely end up earning a profit for the government. While TARP could have done better, the public perception that TARP failed is not consistent with most data.

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EPA Plans for Greater Openness in Coming Years

The U.S. Environmental Protection Agency (EPA) will incorporate greater transparency, accountability, and community engagement throughout its operations over the next five years, according to the agency's recently released Fiscal Year (FY) 2011-2015 Strategic Plan. The new strategic plan is the agency's first developed under the Obama administration, which has made increasing government openness a high priority.

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Modernization at IRS Could Help Reduce Tax Gap and Shrink Deficit

The estimated $345 billion in revenue that goes uncollected every year is a tempting target for deficit crusaders. However, closing the so-called tax gap is not a cure-all, and attempting to address the problem could create other tax compliance issues. Despite such potential complications, a new report by the Government Accountability Office (GAO) has found that recent modernizations to the Internal Revenue Service's (IRS) computer systems show promise in helping to close the tax gap while avoiding some of the problems that may arise from aggressive tax collection.

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EPA and Transportation Lay Out Long-term Fuel Efficiency Plans

The U.S. Environmental Protection Agency (EPA) and the Department of Transportation (DOT) have begun the process for setting fuel efficiency standards for light-duty vehicles (cars and light-duty trucks) for model years 2017 through 2025. The regulatory initiative comes at a time in which the EPA is under bipartisan attack for addressing climate change issues in the absence of congressional action.

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