HOME

ABOUT US

OUR ISSUES

Information & Access

Nonprofit Advocacy

Regulatory Policy


PRESS ROOM

ACTION CENTER

PUBLICATIONS

THE WATCHER

OUR BLOGS


SIGN UP

Receive news, updates, and alerts!

DONATE

Help support our work


OTHER SITES

FedSpending.org

RTK NET

NPAction

Working Group on Community Right-to-Know

Citizens for Sensible Safeguards

Open the Government

OMB Watch Logo

Demanding a federal budget that is fair, responsible, and meets our nation's priorities

Home :  Federal Budget & Tax : 
Federal Budget & Tax:      News     Blog     Background    



Friday, August 29, 2008

A Swing and a Miss on Tax Evasion

A quick item to share from the Boston Globe today about the lengths companies will go to avoid taxes. This one from Raytheon is really over the top:

The Waltham defense contractor [Raytheon] unsuccessfully tried to persuade a Massachusetts state tax board that because most of the company's work is done for the federal government, it should be exempt from paying state sales taxes on much of what it buys here - items as diverse as toilet paper, a juke box, and promotional gifts such as golf umbrellas, pins, and key chains.

The Globe article has an interesting narrative about the crazy state of tax policy in America when it explains how items purchased for resale are taxed - it details why Burger King has to pay tax on paper napkins but McDonald's doesn't have to pay tax on the toys included in happy meals. It is worth reading and will crystalize for you how insane it is that Raytheon thought they would get $700,000 - plus interest! - from the state of Massachusetts for snow plowing and office supplies.

This isn't the first time Raytheon has failed to win this exemption from MA. Seems like the Raytheon folks should stick to building missles and leave the tricky tax avoidance schemes to the experts.

(h/t Government Inc.)



Posted by Adam Hughes, 04:41:46 PM



Friday, August 22, 2008

Gearing up for New Census Poverty Data

Today has been a slow day in an already slow month in fiscal policy in Washington, DC, but the Center on Budget and Policy Priorities (CBPP) issued a very helpful report leading up to the release of poverty, income, and health insurance data from the U.S. Census Bureau next Tuesday. The report is a guide to what to look for in the Census release and how to assess whether economic growth is reaching low- and middle-income families.

CBPP thinks these data could show some pretty unprecedented trends:

The 2007 figures may well show something unprecedented. For the first time on record, poverty and the median income of working-age households may be worse at the end of a multi-year economic expansion than they were at the bottom of the previous recession. That would be an unparalleled and troubling sign of the limits of recent economic growth.

WHAT TO WATCH FOR IN THE NEW CENSUS INCOME AND POVERTY NUMBERS



Posted by Adam Hughes, 04:55:04 PM



Monday, August 18, 2008

CHN Hosting Prep Webinar on Census Poverty Data Release

On Tuesday, August 19, the Coalition on Human Needs is once again hosting a webinar to help advocates and analysts prepare for the release of annual data from the Census Bureau about poverty, income, and health insurance in the U.S. The webinar will take place from 2:00 - 3:30 (EST) on the web, and feature Jared Bernstein of the Economic Policy Insitute, Douglas Hall, Acting Managing Director of Connecticut Voices for Children, Deborah Weinstein, Executive Director of the Coalition on Human Needs, and will be moderated by Ellen Teller, Director of Government Affairs, Food Research and Action Center.

If you are not familiar with CHN's webinar or the annual data release of poverty information from Census, here's a bit of information about what you can expect if you sign up and participate. The webinar will help you:

* to find and understand national numbers and the findings for your state when they're released on August 26
* to see accurate trends over time; whether your state fares better or worse than the national average
* to compare the new data (from 2007) with what we know about the economic woes of 2008, and
* how to talk about the new findings to help build the growing movement for a national commitment to dramatically reduce U.S. poverty.

To sign up to participate and for more information, see CHN's webinar webpage.



Posted by Adam Hughes, 04:28:28 PM



Friday, August 15, 2008

Bush Administration Backs Off SCHIP Restrictions

that is off the hook

The Bush administration announced yesterday that it will not enforce new requirements that would have made it more difficult for states to enroll children in the State Children's Health Insurance Program (SCHIP). USA Today reports that the administration will not be taking "compliance action" at this time on regulations that would have forced states to wait until children are uninsured for one year before being covered by SCHIP and also require states to enroll 95 percent of extremely low-income children in the state before expanding health care coverage to only somewhat low-income families:

The directive was aimed at 15 states that extended health insurance to children in families with incomes above 250% of the federal poverty level — $44,000 for a family of three.

Many governors and Democratic lawmakers criticized the administration's new guidelines as impossible to meet. They said the final result would be that more children would go without health coverage as states rein in their programs.

With the deadline fast approaching, the administration made clear that states were under no immediate threat of losing federal funding.

We commented at the end of July about how Democrats in Congress really dropped the ball in using the Congressional Review Act to impede the Bush administration's efforts to keep kids from having health care. Fortunately, at least for the time being, it looks like they are off the hook.



Posted by Adam Hughes, 11:49:47 AM



Wednesday, August 13, 2008

Looking for Top Notch Interns!

The OMB Watch Fiscal Policy Program is looking for an intern for the fall of 2008. Yup, that's right. This is your chance to get in on the ground floor at one of the most dynamic nonprofit watchdog groups in Washington, DC. We're looking for energetic undergraduate or graduate students who have excellent writing, critical thinking, and communications skills, and who are dedicated to public policy and government accountability (see current intern Josh at right for example).

The internship is unpaid, but you'll have the chance to gain first hand experiences and take on significant responsibilities related to a number of different aspects of policy analysis in DC. Plus, you'll get a chance to write for the BudgetBlog - what could be better?

Interested? Learn more about the position and how to apply.



Posted by Adam Hughes, 05:56:02 PM



Tuesday, August 05, 2008

State Budget Woes Continue

The fiscal health of states around the country is continuing to deteriorate, according to an updated report from the Center on Budget and Policy Priorities. CBPP has issued updates to this report, initially released on January 15 this year, as state legislatures have attempted to deal with their budget shortfalls during the FY 2009 state budget process. This will be the last update of this report as only two states are left without an enacted FY 2009 budget.

The latest update from CBPP notes that 29 states and the District of Columbia had to deal with budget gaps this year, totaling $48 billion. The CBPP report summarizes their research findings:

  • Over half of the states have faced problems with their FY2009 budgets.
  • The 29 states in which revenues were expected to fall short of the amount needed to support current services in fiscal year 2009 are Alabama, Arkansas, Arizona, California, Connecticut, Delaware, Florida, Georgia, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, and Wisconsin. In addition, the District of Columbia closed a shortfall in fiscal year 2009. The budget gaps totaled $47.6 to $49.2 billion, averaging 9.3 percent to 9.7 percent of these states' general fund budgets. (See Table 1.) California — the nation's largest state — faced the largest budget gap. The shortfalls that states other than California faced averaged 6.2 percent to 6.7 percent of these states' general fund budgets.
  • Analysts in three other states — Missouri, Texas, and Washington — are projecting budget gaps a little further down the road, in FY2010 and beyond.

This brings the total number of states identified as facing budget gaps to 32 — close to two-thirds of all states. Most states have addressed the FY2009 budget gaps identified here. However, new budget gaps in these and other states are likely to develop as state revenue forecasts are updated during the year.



Posted by Adam Hughes, 05:01:10 PM




Latest Entries by Theme

All Themes

Appropriations & Spending

Federal Tax Policy

Income/Wealth Inequality

Budget Projections

Government Performance

Estate Tax

State Fiscal Policy

Watcher

Entitlements

Budget Process

Debt & Deficit

Oversight & Enforcement

Transparency

Privatization

Contact Us

Most Recent Entries for Federal Budget & Tax

Obama Selects Chief Performance Officer

Business Cuts as Stimulus: Somewhat Less Than Effective

CBO 2009 Deficit Projection Tops $1 Trillion

Gates Opines on 2009 War Spending

Details of New House Rules Package

The Case for Tax Cuts in the Recovery Package

Economic Package Details Coming Into View

Douglas Elmendorf Tapped as CBO Chief

Commission Proposals Being Pushed From Day 1

We Wish You a Merry Christmas and Happy Holidays

Archived Entries for State Fiscal Policy

December, 2008

November, 2008

September, 2008

August, 2008

July, 2008

June, 2008

May, 2008

April, 2008

March, 2008

February, 2008

January, 2008

December, 2007

November, 2007

September, 2007

August, 2007

June, 2007

May, 2007

April, 2007

February, 2007

January, 2007

November, 2006

October, 2006

August, 2006

February, 2006

November, 2005

October, 2005

September, 2005

July, 2005

April, 2005

March, 2005

November, 2003

August, 2003

July, 2003