Publications :  The Watcher :  OMB Watcher Vol. 6: 2005 :  June 13, 2005 Vol. 6 No. 12 : 

In This Issue

---

House Conservatives Coopt DeLay into Pushing Dangerous Budget Process Reforms (06/13/2005)
After House Republican leadership avoided the derailment of the FY 2006 budget resolution by a small group of House conservatives over a standoff about budget process rules, the movement to change those rules in Congress has picked up steam once again. This time, however, the group of conservative House Republicans has enlisted the help of a powerful ally: Majority Leader Tom DeLay (R-TX).

Erosion of Retirement Security Continues in America (06/13/2005)
A recent wave of bankruptcies has caused the benefit pension plans of many large companies to be significantly under-funded or fold, leaving millions of workers dependent upon the government-sponsored insurance system: the Pension Benefit Guaranty Corporation (PBGC). These bankruptcies have put additional pressure on the PBGC to cover the payments to millions of Americans who were planning on their pensions for retirement. This wave of corporate bankruptcies that is burdening the PBGC makes it all the more important that the Social Security system remain a guaranteed benefit that is risk-free, especially for workers who have lost their pensions through no fault of their own. It is also a warning that the PBGC could become the equivalent of the savings and loan debacle of the 1980s.

Horrific and Costly Legislation to Repeal the Alternative Minimum Tax Introduced (06/13/2005)
In a strange development in late May, a bipartisan group of Senators on the Finance Committee cosponsored legislation introduced by Sen. Max Baucus (D-MT) to permanently repeal the Alternative Minimum Tax. However, the legislation does not include provisions to offset the huge cost of the bill. While there is broad consensus that the AMT needs to be reformed as it continues to creep into the consciousness and tax returns of middle-class Americans, a full repeal would be horrible tax policy that would once again give a huge tax break to the super-wealthy and is the wrong choice when Congress is attempting to control federal deficits.

Tax Cuts Often Slide Through Congress Undetected (06/13/2005)
It is one thing for Congress to cut taxes for major manufacturers such as those working in the wine, beer, and liquor industry, but it is another issue altogether to do so by burying the language in little-noticed sections of the highway reauthorization bill. Yet this is exactly what is happening right now and it is only one example of an increasingly opaque system Congress uses to make piecemeal changes to the tax code without debate.

Whistleblower Reveals Bush Administration Altered Climate Change Reports (06/13/2005)
A former oil industry lobbyist changed language in government climate change reports to undermine the science on climate change and present it as less problematic, according to a government whistleblower, in what is becoming a persistent problem of politics trumping science. Days after news outlets broke the story, Sen. John Kerry (D-MA) and Rep. Henry Waxman (D-CA) sent a letter to the Government Accountability Office asking for an investigation into the whistleblower's claims.

FOIA Continues to Get Congressional Attention (06/13/2005)
Sens. John Cornyn (R-TX) and Patrick Leahy (D-VT) introduced another bipartisan Freedom of Information bill last week that would require any new bills that exempt information from the Freedom of Information Act (FOIA) to say so within the text. This bill joins several bills aimed at strengthening FOIA, while several others would chip away at the act.

Nuclear Commission Allows Access to Classified Information, Maybe (06/13/2005)
The Nuclear Regulatory Commission (NRC) published a final rule June 2, allowing individuals or organizations access to classified information on agency licensing activities if they can demonstrate a "need to know." The agency originally published an identical final rule Dec. 15, 2004, but withdrew it after negative comments.

Biomonitoring Shows We Have Toxics in Our Bodies (06/13/2005)
Steve Lopez, a columnist for the Los Angeles Times, participated in biomonitoring tests with ten other people and writes about the troubling results in his June 8 column, "We've Got Really Bad Chemistry". As California considers a bill for a state-wide biomonitoring research program, this test case bolsters the claims that biomonitoring can become a useful tool for protecting human health.

Open Records Act Helps Uncover Government Impropriety in Virginia (06/13/2005)
Two Virginia citizens' fight under the state's Freedom of Information Act (FOIA) helped to uncover an African safari that Virginia state officials took on the public's dime. The citizens ended up going to court and winning their case, which could have significance in other states.

House Committee Repeals Parts of Campaign Finance Law (06/13/2005)
The House Administration Committee approved an amended version of the 527 Fairness Act (H.R. 1316) on June 8 in a straight party line vote. The bill would repeal some parts of the Bipartisan Campaign Reform Act of 2002 (BCRA) by increasing limits on individual and PAC contributions and removing restrictions on electioneering communications by some nonprofits. It would not put limits on contributions to independent 527 groups, but would require them to report to the Federal Election Commission (FEC) as well as the IRS. Internet communications would also be exempt from regulation. A competing bill that would restrict contributions to 527 groups was not considered.

Update: Senate Finance Committee and Nonprofit Legislation (06/13/2005)
Senate Finance Committee activity on nonprofit regulation is picking up steam as the projected date for introduction of the long-awaited reform bill approaches. Conservative groups and Sen. Rick Santorum (R-PA) have expressed concern about the impact some proposals could have on small nonprofits and that there is inadequate resources to enforce existing laws. The committee’s staff report on land donations was released June 7, and a June 8 hearing took an in-depth look at ways future abuse in this area can be avoided. However, the scope of the bill will likely be much broader, although details remain unknown. Meanwhile, the IRS has changed its selection process for audits, focusing on areas of high risk for abuse.

Host of Comments Filed on FEC Proposed Internet Regulation (06/13/2005)
Comments filed by a host of groups and individuals concerned with proposed regulation of Internet communications by the Federal Election Commission (FEC) reflect a general sense that the Internet should be largely unregulated, but disagreement over details. Over 1,000 groups, bloggers and others signed a Statement of Principles calling for protection of this “unique and powerful First Amendment forum.” Comments from three reform groups opposed a per se exemption for organizations. OMB Watch comments recommended a hands-off approach.

Congress Grapples With Industry Influence at FDA (06/13/2005)
Efforts to free the Food and Drug Administration from the pharmaceutical industry's excessive influence seesawed between success and failure in the same week, as the House voted to ban drug company scientists from FDA advisory committees while an agency whistleblower revealed that a new drug safety board has been tilted in favor of the drug companies.

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.