Policy Update

Outlook: FY2007 Federal Appropriations

9/27/2006

Source: Independent Sector

Outlook: FY2007 Federal Appropriations
House Majority Leader John Boehner (R-OH) yesterday said that House lawmakers will focus on trade legislation and FY2007 federal appropriations legislation during a lame-duck session following November's mid-term elections.  "I do not want the appropriations process to carry over into next year," Majority Leader Boehner said.  "It delays action on next year's work and I would like to get finished this year."  Source: Congress Daily PM

President Signs Spending Transparency Bill

President Bush yesterday signed into law legislation (S. 2590) to create a searchable, public database disclosing all federal grants and government contracts totaling more than $25,000.  Praising the legislation, the President said, "This bill will increase accountability and reduce incentives for wasteful spending."  The database is scheduled to be completed by January 1, 2008.  Source: Congress Daily PM

Treasury Releases Tax Gap Plan

The Treasury Department yesterday unveiled a report outlining a broad strategy to address the nation's $345 billion tax gap, the amount of taxes owed but not paid.  Treasury will deliver to Congress a more detailed plan following the release of President Bush's FY2007 federal budget. 

The broad strategy is based upon four principles: addressing unintentional taxpayer errors and intentional taxpayer evasion; targeting sources of noncompliance; combining enforcement activities with a commitment to taxpayer service; and making sure policy positions and compliance proposals are sensitive to taxpayer rights and maintain a balance between enforcement activity and imposition of taxpayer burden.  Source: BNA Daily Tax Report, Congress Daily AM

See Treasury's "A Comprehensive Strategy for Reducing the Tax Gap" (pdf).