Congress Seeks to End IRS Privatization Program

Legislation has been introduced in the House and Senate that would halt an Internal Revenue Service (IRS) program that outsources certain tax collection responsibilities to private companies. The costly and dangerous program has been soundly criticized by Congress, the IRS National Taxpayer Advocate, and outside consumer groups since it began last fall.

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Congress Finally Finishes FY 07 Appropriations

It took four extra months and a new Congress, but on Feb. 14, lawmakers finished the FY 2007 appropriations cycle when the Senate passed H.J.Res. 20. The $463.5 billion spending bill passed 81-15. The President signed the bill the next day, just in time to prevent a government shutdown.

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Squabbling Over Tax Cuts Continues to Delay Minimum Wage Increase

On Feb. 16, by a vote of 360-45, the U.S. House of Representatives passed H.R. 976, a ten-year, $1.3 billion package of offset tax cuts designed to accompany a $2.10 per hour increase in the minimum wage. On Feb. 1, the Senate adopted S. 2 — including its own set of offset tax cuts totaling $8.3 billion over ten years. The two tax packages differ markedly in size and content, and S. 2 includes the minimum wage hike while H.R. 976 comprises only the tax provisions, which could complicate the procedural road ahead.

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Grassroots Lobbying Survey Results Demonstrate Strong Support for Disclosure

In early February, OMB Watch conducted a week-long Internet survey on federal grassroots lobbying disclosure that asked respondents to express their support or opposition to a variety of disclosure principles. Over 1,100 people responded to the survey, and the results were clear: strong support exists for federal grassroots lobbying disclosure.

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TRI Changes are Major Issue at EPA Oversight Hearing

The Environmental Protection Agency's (EPA) changes to the Toxics Release Inventory (TRI) were a prominent issue at the Senate Environment and Public Works Committee's (EPW) Feb. 6 EPA oversight hearing. The three-panel hearing also addressed the closure of EPA libraries, the elimination of perchlorate testing, and the agency's current consideration of revoking the air quality standard for lead.

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OMB Watch Releases Analysis of Bush FY 08 Budget Request

During the week of Feb. 5, OMB Watch issued a multipart analysis of President George W. Bush's Fiscal Year 2008 budget request to Congress. In an overview of the president's budget, OMB Watch examined the overall impact of the request and found that it puts tax cuts ahead of domestic needs. The budget uses gimmicks and omissions to mask the true impact of the president's proposals and allows him to project an artificially balanced budget.

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FEC Tells Court that Case-by-Case Regulation of Independent PACs Works

On Feb. 1, the Federal Election Commission (FEC) published new guidance for its 2004 rule defining when independent political committees are subject to federal campaign finance rules and contribution limits. The document responds to a court order seeking stricter regulation of 527 groups. In the guidance, the FEC cites its 2006 enforcement action against six groups as proof that its case-by-case approach — used to determine whether a group's "major purpose" is to influence federal elections — is workable.

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Senate Passes Minimum Wage Increase with Tax Cuts Added

On Feb. 1, the U.S. Senate wrapped up nearly two weeks of debate with a 94-3 vote to approve S. 2, the Fair Minimum Wage Act of 2007. The bill raises the federal minimum wage to $7.25 an hour by 2009 and extends $8.3 billion of existing small business tax breaks. The fate of the bill remains uncertain because House Democrats are reluctant to provide tax breaks for small business in exchange for passing a minimum wage hike.

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OMB Watch Critical of Proposed Chemical Security Rule

In response to the Department of Homeland Security's (DHS) proposed interim chemical security rule, OMB Watch will submit comments to DHS that argue for increased transparency and stronger protections at thousands of facilities across the country.

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Courts Defining When Government Funds Cannot Support Faith-Based Programs

The U.S. Supreme Court will soon hear oral arguments about whether taxpayers have the right to challenge the constitutionality of government funding for conferences supported by the White House Office of Faith-Based and Community Initiatives that are alleged to promote religious groups over secular ones. Meanwhile, several recent court decisions involving separation of government-funded and religious programs provide some clarity to vague federal regulations.

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