Publications :  The Watcher :  OMB Watcher Vol. 7: 2006 :  January 24, 2006 Vol. 7, No. 2 : 

In This Issue

---

The Graham Files (01/25/2006)
New from OMB Watch: The Graham Files, a compilation of OMB Watch's analysis and news reports from John Graham's tenure as administrator of OMB's Office of Information and Regulatory Affairs.

Risk Bulletin Advances Graham Anti-Reg Agenda (01/24/2006)
From cost-benefit guidelines to the new draft policy on risk assessments, White House regulatory czar John Graham has steadily proceeded with a long-range plan laying the groundwork for dramatic limits on public safeguards.

Reform Must Illuminate Channels of Money, Influence (01/24/2006)
Both Republican and Democratic lawmakers have proposed principles and introduced legislation to purge the excessive influence of lobbyists in Washington, since corruption scandals highlighted the inappropriately cozy relationship between Capitol Hill and K Street. Neither party, however, appears to be making full use of one the best weapons against corruption and abuses of power--sunlight. Reform proposals would all be strengthened with more comprehensive use of the tools of transparency.

EPA Gets an Earful on Plan to Reduce Toxic Reporting (01/24/2006)
More than 70,000 citizens voiced opposition to the Environmental Protection Agency's (EPA) proposals to cut chemical reporting under the Toxics Release Inventory (TRI), during the agency's public comment period that ended Jan. 13. Those speaking out against EPA's proposals included state agencies, health professionals, scientists, environmentalists, labor, Attorneys General, and even Congress, all of whom raised substantive concerns with the plan.

Government Secrecy's Latest Victims: Whales (01/24/2006)
According to documents released to the Natural Resources Defense Council, all references to the possibility that naval sonar may have caused 37 whales to swim ashore and die in North Carolina last year were deleted from a government report on the incident. The revelation came as the Department of the Navy nears the close of its public comment period on its plans to build an underwater sonar training range in the same North Carolina location.

Update: "Is Industry Pulling EPA's Strings?" (01/24/2006)
On Jan. 23 Thomas Sullivan, chief counsel for advocacy with The Small Business Administration (SBA), contacted OMB Watch in response to "Is Industry Pulling EPA's Strings?", an article recently published in The Watcher that describes a troubling pattern of close cooperation and extensive communication between the SBA and the Environmental Protection Agency around reducing chemical reporting under the Toxic Release Inventory (TRI), in order cut down on governmental paperwork for companies. Sullivan asked that OMB Watch clarify that the 1997 investigation by SBA's Inspector General into possible unethical actions around the TRI by SBA lawyer Kevin Bromberg, who has previously advocated for an industry coalition on TRI, found no evidence of inappropriate action. During his conversation with OMB Watch, Sullivan acknowledged that all of the facts cited in the article about recent interactions between EPA and SBA are correct. The article has been updated to reflect SBA's request.

Amid Reform Frenzy, Senate Democrats Introduce Lobby Reform Bill (01/24/2006)
Since the guilty plea by lobbyist Jack Abramoff, Congress has been hurriedly preparing lobby and ethics reform legislation. Republicans announced their ideas at a Jan. 17 press conference that seemed mostly designed to pre-empt the unveiling of Democrats plan on Jan. 18. The Senate Democrats followed their press event with the introduction of a comprehensive bill authored by Minority Leader Harry Reid (D-NV). In our view, the Reid bill is a solid beginning, but falls short of adequately addressing the culture of corruption that surrounds Washington politics today. To follow is an analysis of the Reid bill and its impact on lobbying generally and nonprofit lobbying specifically.

High Court Opens Door to Campaign Finance Rule Challenge (01/24/2006)
Less than a week after oral arguments were held the Supreme Court ruled on Jan. 23 that the Bipartisan Campaign Reform Act of 2002's (BCRA) ban on "electioneering communications" can be challenged on a case-by-case basis. The ruling opens the door for the Wisconsin Right to Life Committee (WRTL) to pursue its claim that BCRA is unconstitutional as applied to its grassroots lobbying communications. The unanimous opinion in Wisconsin Right to Life Committee v. Federal Election Commission referred the case back to the lower court to determine if WRTL's broadcast is a genuine grassroots lobbying communication that should therefore be exempt. For nonprofits looking to the 2006 election cycle, the ruling will likely leave in place the prohibition on ads that mention a federal candidate 30 days before a primary and 60 days before an election, since the Federal Election Commission (FEC) has revoked its earlier exemption for 501(c)(3) organizations, and the lower court may not act quickly enough.

IRS to Step Up Nonprofit Enforcement in 2006 (01/24/2006)
Internal Revenue Service (IRS) Commissioner Mark Everson, speaking to the Greater Washington Society of CPAs, recently announced that in 2006 the IRS will increase its enforcement efforts for exempt organizations, building on a trend of the past few years. Among the agency's top priorities, according to Everson, will be enforcement of the ban on political intervention by charities and religious organizations. The announcement comes as the IRS continues to draw criticism for its Political Intervention Program (PIP) of 2004, which included audits of organizations based on statements critical of administration policies.

Without Addressing Budget Process, Lobbying Reform Doomed to Fail (01/24/2006)
Since lobbyist Jack Abramoff pleaded guilty to charges of conspiracy, mail fraud and income tax evasion, Democrats and Republicans have eagerly jumped on the lobbying and ethics reform bandwagon. Amid the flurry of proposals to overhaul Washington's lobbying system, however, one of the primary mechanisms through which lobbyists see their influence pay off--the system of budget earmarks--has been largely ignored.

Still Fewer Heirs Will See Fortunes Taxed in 2006 (01/24/2006)
On Jan. 1, the value of assets that can pass tax-free from one generation to the next rose from $1.5 million to $2 million (or $4 million per couple), an increase that was scheduled under the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), passed by Congress in 2001. This expansion of tax-free inheritance means an even smaller fraction of a percent of Americans will be subject to the tax in 2006.

Privacy Statement | Press Room | Site Map | Contact OMB Watch

© 2008 OMB Watch
1742 Connecticut Avenue, N.W., Washington, D.C. 20009
202-234-8494 (phone)
202-234-8584 (fax)

Combined Federal Campaign #10201

Please credit OMB Watch when redistributing this material.