Publications :  The Watcher :  OMB Watcher Vol. 7: 2006 :  August 22, 2006 Vol. 7, No.17 : 

In This Issue

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As Elections Near, New Complaints of Partisan Activity Filed Against Religious Groups (08/22/2006)
New complaints filed with the Internal Revenue Service (IRS) accuse churches in Missouri and Texas of participating in partisan political activities that are prohibited under the tax code. Meanwhile, Focus on the Family announced a new voter mobilization drive aimed at evangelical churches which will likely result in IRS complaints before the November elections. Both developments highlight the continued confusion and ambiguity that have plagued IRS policy on voter education and mobilization activities by nonprofits.

With Hearing Possible on Extremist Nominee for Regulatory Czar, Opponents Gear Up for Fight (08/22/2006)
While a vote on Susan Dudley's nomination to be the new White House regulatory czar has yet to be scheduled, it is rumored that the GOP majority on the Homeland Security and Government Affairs Committee will try to push a vote through in September.

Dudley Materials Reappear on Mercatus Website (08/22/2006)
Earlier this month, OMB Watch reported that articles authored by the nominee to replace John Graham as the head of the Office of Information and Regulatory Affairs (OIRA), Susan Dudley, were no longer available on the website of the Mercatus Center, the industry-backed think tank where Dudley was previously employed. Now, all the missing articles have mysteriously returned to the website and several previously unavailable articles by Dudley have also been posted there.

Strange Happenings at the IRS Could Affect Enforcement (08/22/2006)
This fall, the Internal Revenue Service will likely make two changes to its tax enforcement efforts that defy logical explanation. IRS Commissioner Mark Everson will soon go forward with plans to cut nearly half its staff of estate tax auditors and to create a program that would allow private companies to pursue taxpayers who owe back taxes.

Despite Short-Term Gains, CBO Forecasts Grim Long-Term Fiscal Outlook (08/22/2006)
On Aug. 17, The Congressional Budget Office (CBO) released the annual summer update to its Budget and Economic Outlook report. In it, CBO lowers its estimate of the Fiscal Year 2006 budget deficit by 30 percent from its March analysis and now projects the year-end deficit at $260 billion. The rosy news, however, did little to assuage analysts' concerns over fiscal challenges looming on the horizon.

New Official Secrets Law?: Case Threatens Open Government and Freedom of Press (08/22/2006)
On Aug. 9, a federal district court ruled that use of the Espionage Act to prosecute private citizens for receiving and transmitting national security information is constitutional. The decision to extend the Espionage Act to non-governmental employees has sweeping implications for open government and freedom of speech and the press, and raises the prospect of the U.S. adopting an Official Secrets Act similar to that of the UK.

Open Government Rising Issue for 2006 Elections (08/22/2006)
With November--and its many state, local and midterm Congressional elections--just around the corner, candidates are promising citizens a more open government in exchange for their vote. Access advocates believe that recent revelations about government secrecy (such the National Security Administration's covert warrantless spying program) and Washington corruption scandals have boosted public support for more democratic and less secretive government at the national, state and local levels, and campaigns are picking up on it.

Federal Court Finds NSA Eavesdropping Program Unconstitutional (08/22/2006)
In a ruling last week, the U.S. Court for the Eastern District of Michigan found the National Security Agency's (NSA) warrantless domestic spying program to be in violation of the First and Fourth Amendments and the separation of powers. The decision came on a case filed by the American Civil Liberties Union (ACLU) challenging the legality of the NSA program by arguing that the rights of several journalists and academics had been violated.

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