Senate Pushes Through Corporate Tax Bill Over Holiday Weekend

The Senate commemorated the Columbus holiday Oct. 11 by holding a special session to pass the corporate tax bill, also known as the FSC/ETI bill. The previous week the House had passed the bill, which was designed to remove certain corporate tax subsidies on exports which had been ruled illegal by the World Trade Organization two years ago. The new tax breaks hit the nation at a time when corporate tax revenue has dropped to a historic low -- and the federal deficit has climbed to an all-time high. Last week, the Congressional Budget Office reported the FY 2004 federal deficit hit a record $413 billion.

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Federal Spending Hits Ceiling Forcing Treasury to Act

Last week, federal spending again reached the debt limit put in place by Congress -- the legal amount, above which the federal government cannot borrow. If borrowing exceeds this ceiling, currently set at roughly $7.4 trillion, immediate action is necessary. Treasury Secretary John Snow was recently forced to take action to ensure that normal monetary transactions can continue.

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A Tale of Two Deficits -- Trade and Budget

In the past few days, the government released separately two numbers showing record deficits: The final fiscal year 2004 federal budget deficit of $413 billion -- the highest dollar value on record A monthly trade gap in August rising to $54 billion -- the second highest on record.

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Senate Recesses, Completes Only 4 of 13 Spending Bills

After passing the Corporate Tax Bill on Columbus Day, the Senate approved with little debate measures to fund both the Military Construction and Homeland Security appropriations bills for FY 2005, which began Oct. 1. Together with the Defense and the District of Columbia appropriations bills Congress recently approved, these bring the total passed to only four of the thirteen bills needed to fund discretionary spending for FY 2005.

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Economy and Jobs Watch: Employment Report Again Shows Weakness

The U.S. employment situation remains weak as the Bureau of Labor Statistics September report showed an increase of just 96,000 jobs. That figure is far below the level needed to keep pace with overall population growth.

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Delaware Professor Sues Pentagon for Coffin Photos

A University of Delaware professor of communications is suing the Pentagon to make public the photos of returning soldiers' coffins to American soil. The lawsuit challenges a 1991 ban on media coverage of fallen soldiers' coffins flown to Dover Air Force Base in Delaware before being returned to their hometowns around the country. Former network television correspondent Ralph Begleiter, together with the National Security Archive, had filed requests under the Freedom of Information Act to obtain photos and moving recordings of all coffins passing through Dover since October 2001.

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Senate Chairman Refuses to Release Richard Clarke's Testimony

For almost four months Sen. Pat Roberts (R-KS), Chairman of the Senate Intelligence Committee, has refused to release declassified testimony related to the 9/11 investigation from former White House Counterterrorism Chief Richard Clarke. Given the critical nature of Clarke's public statements and the proximity of elections, political motivations for the repression are strongly suspected.

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Critical Habitat Proposed for Endangered Species Challenged Under Data Quality Act

The Fish and Wildlife Service (FWS) proposed designating 376,095 acres essential to the survival of the southwestern willow flycatcher. The southwestern willow flycatcher is an endangered bird whose habitat covers the southwestern portion of the United States. Information related to this endangered species was challenged under the Data Quality Act in 2003 and may have helped shape the habitat designation.

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Congress Passes Limited FOIA Exemption for Satellite Imagery

The House and Senate adopted a new Freedom of Information Act (FOIA) exemption without the overly broad language originally proposed by the Senate, which would have provided a blanket prohibition on disseminating any commercial satellite imagery or derived products. The exemption was part of the 2005 Defense Authorization Act passed Oct. 9.

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Justice Asks to Submit Secret Evidence on Transportation Rule

The Justice Department has requested permission to submit evidence to the court under seal in a case about a secret security rule. The case involves a secret transportation security rule that requires airline passengers to show identification in order to fly.

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