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Wednesday, April 16, 2008
DAILY FISCAL POLICY REPORT -- April 16, 2008
Economy -- Latest Data: Inflation Up, Earnings Down
- Inflation Up in March: BLS data show consumer prices advanced 0.3 percent in March; energy was up 1.9 percent while food ticked up 0.2 percent. Over the past 12 months, inflation is up 4.0 percent (less food and energy, 2.4 percent)
- Average Weekly Earnings: The BLS is also indicating that real (inflation adjusted) average weekly earnings were up 0.2 percent Feb. to March. Year-over-year, real average weekly earnings are down 1.0 percent, continuing their downward trend.
Taxes -- House Votes an End to Private IRS Dunning Scheme: By a vote of 238-179, the House yesterday approved the Taxpayer Assistance and Simplification Act of 2008 (H.R. 5719), which would end the controversial private debt collection program at a cost of $578 million over 10 years. The bill is fully offset; one such measure would prevent certain federal contractors from avoiding paying FICA taxes. Fortunes of the bill in the Senate are uncertain -- Sen. Charles Grassley (R-IA) is a staunch supporter of the IRS scheme. OMBW blog.
Farm Bill -- Accord Close, but Offset Agreement Elusive: Despite rapid progress on the bill's spending provisions regarding agriculture research, international food aid, and support for beginning farmers, conferees still seek offsets for the $10 billion spending above the bill's $290 billion baseline. "We're not even close," House Ways and Means Committee Chairman Charles Rangel (D-NY) said about negotiations with Senate Finance Committee Chairman Max Baucus (D-MT).
Posted by Dana Chasin
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