With the shake-up in the Administration’s economic team, the recent rise in the unemployment rate to 6% (the highest rate in eight years), and absolutely no evidence that the massive Bush tax cut has done anything but send the federal budget on a rapid spiral into deficit, a reasonable person might think that it was time for the Administration to reevaluate the idea that tax cuts are the solution to everything. The President’s economic stimulus plan, currently in the design phase, however, is expected to consist of tax cuts aimed at corporations and individuals in the higher tax brackets.

On December 5 the Federal Election Commission (FEC) approved new regulations that define when communications with a federal candidate, a campaign, party or their agent, may turn an otherwise independent expenditure into a prohibited in-kind campaign contribution. The rule implements the Bipartisan Campaign Reform Act of 2002, which required the FEC to write tougher regulations in this area. The regulations will take effect 30 days after publication in the Federal Register. The new rules use a three-part test to determine when an expense is considered “coordinated”. It must be for a public communication paid for by someone other than a candidate or campaign and meet specific standards relating to both content and conduct between the candidate and group or person paying for it.