Two New Tax Cuts Benefit the Wealthy

As a fitting kick-start to a year in which President Bush is expected to push hard to make his expensive and unbalanced tax cuts permanent, two new tax cuts went into effect that almost exclusively benefit high-income households. These tax cuts, referred to as "PEP" and "Pease," were enacted in 2001 but did not go into effect until 2006--an underhanded but politically advantageous move that kept the total cost of the 2001 tax cut package within set budget limitations.

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Congress Has Yet to Pass Budget, Tax Cuts

The budget and tax reconciliation measures laid out in Congress's April 2005 budget resolution took up a good deal of lawmakers' time and energy throughout last fall, and continue to linger unfinished, even as the release of the president's Fiscal Year 2007 budget rapidly approaches. The House of Representatives, in fact, is scheduled to vote on the final budget bill one week before the president is scheduled to release his budget on Feb. 6.

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Concern Grows Over Unauthorized Domestic Spying

The Bush administration's acknowledgement of secret and unauthorized domestic spying since the 9/11 attacks has roiled both Republicans and Democrats in Congress. On Dec. 16, The New York Times reported President Bush authorized the National Security Agency (NSA) to eavesdrop on domestic phone calls and emails without a wiretapping warrant, kicking off a storm of protest just as renewal of the USA PATRIOT Act was being considered. OMB Watch responded to the unfolding events in a Dec. 20 statement. The following is a summary of major events since the Times story broke.

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Collins' Revised Chemical Security Bill: An Improving Grade

Shortly before Congress broke for recess in December, Sen. Susan Collins (R-ME), Chair of the Senate Committee on Homeland Security and Government Affairs, introduced the Chemical Facility Anti-Terrorism Act of 2005 (S. 2145). The bill, which is co-sponsored by Sens. Joseph Lieberman (D-CT), Norm Coleman (R-MN), Thomas Carper (D-DE) and Carl Levin (D-MI), is a significant improvement over the draft bill previously evaluated by OMB Watch (see Failing Grade on Chemical Security, The OMB Watcher [Dec. 13, 2005]), but still fails to require reporting on the use of safer technologies.

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Abramoff Plea Brings New Lobby Reform Bills

With the recent plea bargain made by high-powered lobbyist Jack Abramoff, federal lobbying reform bills have gained momentum in Congress, with Democrats and Republicans vying to lead the pack and shake the "Abramoff taint" in time for re-election.

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White House Proposes Guidelines to Control Agency Risk Assessments

When it rains, it pours: the same day the White House closed the comment period on its proposed bulletin to govern agency guidance practices, the White House Office of Management and Budget released a proposed bulletin to govern agency risk assessments.

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Is Industry Pulling EPA's Strings?

Correspondences obtained by OMB Watch between the Small Business Administration (SBA) and the Environmental Protection Agency (EPA) raise significant questions about the influence SBA exerted over EPA's decision to pursue its current proposals to reduce chemical reporting under the Toxics Release Inventory (TRI).

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IRS Clears Florida Church of Partisan Activity Accusation

An IRS investigation of a Florida church has found there was no partisan political activity when candidates attended and appeared at services during the 2004 election season. In late Dec. 2005 the IRS told Guy Lewis, the attorney for Friendship Missionary Baptist Church, that the case would be closed and resolved favorably for the church.

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White House 'Guidance' to Burden Agencies, Delay Information

A White House proposal will hinder federal agency efforts to provide important information to the public by opening guidance documents to politicization and industry influence, according to comments filed by Citizens for Sensible Safeguards.

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FEC: No Exceptions for Charities to Electioneering Communications Rule

On December 21, the Federal Election Commission (FEC) voted to drop exemptions for 501(c)(3) nonprofits to Bipartisan Campaign Reform Act (BCRA) rules that restrict electioneering communications. The new rule eliminates exemptions for television, radio and cable advertisements that mention a federal candidate 30 days before a primary or 60 days before a general election paid for by charities and religious organizations, as well as "public service announcements," (PSAs) which are aired for free.

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