Publications :  The Watcher :  OMB Watcher Vol. 6: 2005 :  November 15, 2005 Vol. 6, No. 23 : 

In This Issue

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A Test of the Integrity of Moderate Republicans (11/15/2005)
The upcoming vote in the House over "mandatory spending" cuts is being hailed as one of the most important votes this year -- as it rightly should be. The vote will indicate as much about the direction our country is headed as it will about Congress' spending priorities. And the outcome is likely to be shaped by the courage and integrity of moderate Republicans.

Senate Finance Committee Struggles with Tax Cuts, Addresses Charitable Giving (11/15/2005)
After postponing the markup three times and significantly modifying the contents of the bill, the Senate Finance Committee finally approved its version of the tax cut reconciliation bill Tuesday evening, 14-6. The bill would increase the deficit by a net of $60.2 billion over the next five years. The committee was originally scheduled to markup the bill last Thursday morning, but ran into opposition from Sen. Olympia Snowe (R-ME) to provisions to extend cuts to capital gains and dividend taxes, the heart of the Bush tax cut plan. As recently as this morning, Chairman Charles Grassley (R-IA) was unable to compile a package that would win the support of all Republicans on the committee but eventually convinced conservatives on the panel that removing the tax cuts for wealthy Americans would not put the issue to rest.

In Shocking Development, Congress Contemplates Tax Increase (11/15/2005)
Congress has been wrestling over the past few weeks with a difficult reality. Due to the rise in oil and gas prices, oil companies are making record-breaking profits. For the last quarter, ExxonMobil, the world's largest oil company, reported soaring profits of almost $10 billion. At the same time, large expected increases in the cost of home heating this winter are threatening to harm millions of low-income Americans in the Northeast and Midwest who depend on already cash-strapped government programs to help pay heating bills. Many industry analysts are projecting a 30 to 50 percent increase over last year in home heating costs across the nation.

Tax Panel Offers "Tough Love" Tax Reform Recommendations (11/15/2005)
On November 1, the President's Advisory Panel on Tax Reform submitted its report to Treasury Secretary John Snow recommending ways to make the tax code simpler, fairer, and more pro-growth. The panel has been working on these recommendations since January, when President Bush issued an executive order establishing it. Its long-awaited recommendations turned out not to be the rubber stamp for conservative regressive tax policies many observers expected, but instead represent a mix of ideas that confront the difficulty of enacting tax reform, not only in a harshly divided political environment, but also with a deeply unhealthy federal budget.

PAY-GO Narrowly Defeated in Senate Reconciliation Bill (11/15/2005)
While the House spent last week fighting to a draw over its spending reconciliation bill, the Senate passed its version the evening of Nov. 3, including a provision that would allow drilling in Alaska's Arctic National Wildlife Refuge. The Senate reconciliation bill cuts $39.1 billion from entitlement programs over a five-year period. While these cuts are not nearly as contentious or damaging to low-income beneficiaries as those being considered on the other side of Capitol Hill, the bill could drastically change during a conference with the House.

Open Government at Stake in Patriot Act Negotiations (11/15/2005)
Lawmakers in the House and Senate began negotiations last week on renewing 16 provisions of the USA PATRIOT Act, set to expire this year. Several important differences exist between the House and Senate bills that affect the government's transparency in its exercise of powers to clandestinely search, seize, and collect information. How these differences are resolved will have broad implications for civil liberties and government surveillance powers.

Infrastructure Protection Plan Fast-tracked Right Past the Public (11/15/2005)
The Department of Homeland Security (DHS) released a Nov. 2 draft of its National Infrastructure Protection Plan (NIPP) and only provided a two-week window for requesting a copy of the plan and a 30-day public comment period. According to its authors, the report offers a "comprehensive, integrated national plan for the protection of critical infrastructures and key resources." Yet, the time constraints on viewing and commenting on it do not allow for substantive public review or response. The NIPP Program Management Office rejected a request by OMB Watch to extend the comment period by 60 days with no explanation for its decision.

Groups Build Support for the Toxics Release Inventory (11/15/2005)
The many public interest groups that oppose EPA's recent proposals to gut the Toxics Release Inventory (TRI) are now working in concert to produce materials and resources that support the environmental right-to-know program. OMB Watch is hosting an Online Resource Center, developed with participating organizations to act as a clearinghouse for concerned groups and individuals to learn about the program and to take action to defend it.

New CFC Rule Does Not Mandate List Checking or Compliance with Treasury Guidelines (11/15/2005)
On November 7, the Office of Personnel Management (OPM) withdrew a regulation that required all nonprofits participating in the Combined Federal Campaign (CFC), the federal government's workplace charitable giving program, to screen employees and donation recipients for possible terrorist ties. The new final rule, which applies to 2006 CFC applicants, requires participating charities instead to certify that they are in compliance with existing anti-terrorist financing laws. OPM's explanation of the new rule notes that "OPM does not mandate that applicants check the Specially Designated Nationals (SDN) list or the Terrorist Exclusion List (TEL)."

IRS Audits Church for Anti-War Sermon (11/15/2005)
The pastor of All Saints Episcopal Church in Pasadena, CA announced earlier this week that the Internal Revenue Service (IRS) is conducting a formal examination of the church's tax-exempt status, due to an anti-war, anti-poverty sermon delivered two days before the 2004 presidential election. Conservative and liberal religious organizations alike have criticized the IRS action, which they see as further evidence of an emerging trend -- beginning with last year's audit of the NAACP -- to treat criticism of incumbents on issues as partisan electoral activity.

House Rejects Bi-Partisan Effort to Shield Internet from Campaign Finance Laws (11/15/2005)
In a surprising vote, the House rejected a bipartisan effort to shield online communications from the strictures of campaign finance reform laws.

Oral Arguments Held in Case Challenging Advocacy Restrictions on Legal Services Programs (11/15/2005)
Litigation challenging the constitutionality of limitations on the advocacy rights of government-funded nonprofit legal services groups advanced recently with oral arguments before a federal appeals court.

Industry Costs Pitted Against Public Needs in Homeland Security Policy (11/15/2005)
How much is a human life worth when it comes to a terrorist attack? Should the public be involved in setting the nation's safety priorities? The Bush administration is offering surprising answers to these questions and more as it develops the general framework for homeland security policy.

Administration Ignores Scientific Evidence and Pushes Forward with Mountaintop Removal (11/15/2005)
A long-anticipated Environmental Impact Statement (EIS) on the mountaintop mining waste disposal process ignores scientific evidence in order to validate the waste disposal method preferred by industry and the administration.

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