Government Matters Articles

The New Round of Bush Tax Cuts--Inequitable, Ineffective and Costly

Bush’s new tax cuts, thinly disguised as an economic stimulus plan, fail every test – whether that of equity, economic stimulus, or responsible budgeting that addresses the nation’s needs. The only test that the Bush plan passes is that of making the President’s wealthier constituents richer while forcing diminished government services upon the rest of us.

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IRS News

Nonprofits that wish to comment on changes in IRS Form 990 have until January 28 to submit their recommendations on proposed changes in the areas of fundraising, organizational accountability, foreign grants and PACs. For more information, see the OMB Watch summary of proposed changes.

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Agencies Going Full Steam Ahead With Faith-Based Initiative

Since the President issued an Executive Order on December 12, 2002, requiring equal treatment of faith-based and secular organizations when applying for federal grants, three agencies have taken action to fill in the details with provisions that look very much like H.R. 7, the controversial version of charitable choice that passed the House of Representatives in 2001. Both the Department of Health and Human Services (HHS) and Housing and Urban Development (HUD) are seeking public comments on their proposed new grant regulations.

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Proposed Forest Rule Creates NEPA Loophole

A new U.S. Forest Service rule would grant an exemption to the National Environmental Policy Act (NEPA) for certain small timber sales. The rule, which was proposed last week, would allow timber projects to eschew environmental assessments and impact statements -- normally required under NEPA -- provided that the project area poses a risk of wildfire or contains insect-infested or diseased trees.

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Happy New Year from the Watcher!

The Watcher wishes you a happy and healthy new year. Because of the upcoming New Year holiday, the Watcher will return on January 13, 2003.

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You?d Better Watch Out?

The December 19 Washington Post reported that the District of Columbia police plan on deploying temporary surveillance camera during two large demonstrations in January. The cameras will be in several locations and along the march route for an anti-war protest and around the US Supreme Court for an antiabortion demonstration. These are in addition to 14 permanent cameras that DC police already operate in the downtown area, as well as their helicopter mounted camera which is ubiquitous at demonstrations.

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Economic Stimulus ? First, Do No Harm

An economic stimulus plan will be on the table early in the next Congress. Following is the tentative schedule. Given the sudden change in Senate leadership with Sen. Trent Lott’s (R-MS) resignation as Senate Majority Leader, there is a great deal of uncertainty about how the budget process will proceed next year, including issues of timing, number of reconciliation bills, and content. The next Watcher may contain a very different timetable.

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Read the Watcher in Full in Easy-to-Print PDF Format

For your convenience, the OMB Watcher is now also available in full as a PDF document -- this will allow for viewing and printing of the entire issue in one document.

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CBO Study Says Nonitemizer Deduction a Nonstarter for Fundraising

A study released by the Congressional Budget Office (CBO) on December 17, Effects of Allowing Nonitemizers to Deduct Charitable Deductions found that allowing nonitemizers to claim a deduction for charitable contributions would be unlikely to increase the level of giving by more than 4 percent. The findings are similar to a Congressional Researech Service report earlier this year.

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Faith-Based Executive Order and Proposed Rules Open Door to Religious Discrimination

After two years of trying and failing to win congressional approval of its plan to increase the number of faith-based organizations receiving government grants for social services programs, the Bush Administration took matters into its own hands and implemented several of the most controversial provisions in Executive Order: Equal Protection of the Laws for Faith-based and Community Organizations.

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