Pacific Progressive

Audit the Tax Code: Doing What Works for Tax Expenditures

By Sima J. Gandhi 

This article was published by the Center for American Progress.

Download the full report (pdf)

Download the executive summary (pdf)

Download to mobile devides and e-readers from Scribd

Event: Government Spending Undercover

See also: America's Hidden Power Bill by Richard W. Caperton and Sima J. Gandhi andGovernment Spending Undercover by Lily Batchelder and Eric Toder

More about the Doing What Works project

The government funds programs in two ways. First, there’s straightforward direct spending—money comes in and the government directly spends it or distributes it to others to spend. Then there are tax expenditures. These expenditures are used to accomplish the same goals as direct spending—they provide incentives for desired behavior, support needed services, and assist certain individuals, groups, or companies. But, unlike direct spending, tax expenditures transfer money by lowering an individual or company’s taxes.

The home Weatherization Assistance Program, or WAP, can serve as an illustration of how these two funding methods can achieve the same ends. The WAP helps low-income families make their homes more energy efficient, which reduces family energy bills. It does this by directly paying the workers who provide these weatherization services. But as an alternative to directly providing services, the government could encourage individuals to weatherize their own homes by reimbursing them for the cost of weatherization. This reimbursement could be delivered as a check or through a tax benefit that reduces an individual’s taxes.

In all three cases—the direct service, the check, or the tax benefit—the government pays the same amount for people to weatherize their homes. The same amount of money leaves the government and the same amount of money arrives in private pockets. Yet policymakers and politicians treat the costs incurred in the first two instances as spending, but not the tax expenditure. Many tax expenditures consequently are not evaluated for effectiveness or regularly scrutinized in the budget process.

Mission Viejo to Host 1st Annual Wheelchair Tennis Classic July 3-4

Registration is available starting May 1 for the City of Mission Viejo's First Annual Wheelchair Tennis Classic July 3-4. 

Wheelchair players from across the state will participate in this spectacular tournament that will host an Open, A, B, C and Junior division for both singles and doubles, allowing a broad spectrum of players to participate. 

More than 60 players are expected to enter and compete at the Marguerite Tennis Center, 23840 Marguerite Parkway. The entry fee is $40 for both singles and doubles. Registration will be available at tennislink.usta.comfrom May 1 through June 26. 

For more information, contact Brian Gruner at 949-859-4348 ext. 5761 or e-mail.

New Health Law Will Require Industry to Disclose Payments to Physicians

by Arlene Weintraub

This article was published by Kaiser Health News.

Doctors who accept speaking fees, five-star meals and other compensation from pharmaceutical or medical device companies will soon see their names – and the value of the gifts they accept – revealed on the Web, under a new federal law that follows several states in drawing attention to such financial benefits.

The experience of one of those states – Vermont – suggests that highlighting the medical industry's largesse may curb the payments. 

This month, the attorney general of Vermont – one of three states to require gift disclosures – released data showing that total payments to physicians dropped 13 percent in fiscal 2009 to $2.6 million. The reporting requirement began in 2002. 

Consumer advocates have complained that industry compensation can affect a doctor's choice of drugs or treatment and that exposing the doctors will dissuade such behavior. But some consumer groups say that the new law is too narrow in its scope. And it has raised complaints among some doctors, who say the provision will unfairly stain legitimate work they do for industry. 

Bringing Transparency to the State Budget Process

Assembly Speaker John A. Pérez (D-Los Angeles) wants to open up the budget process to as many Californians as possible so the final spending plan reflects the values of Californians. In order to give more people a voice in the budget process Speaker Pérez and other Assembly Democrats are hosting a series of interactive budget forums around the state that are being webcast live on the internet. A series of budget hearings at the state capitol will also be webcast live online. At a press conference in Fresno minutes before a townhall, Speaker Pérez talked about how he hopes the interactive live webcasts will bring transparency to the complex state budget process. Heres the Speaker in this Assembly Access video.

What Does Health Care Reform Mean for You?

Julianne Moore explains what is in the bill and how it advances women's health care.

$135 Billion to be Saved in Defense Acquisitions Over 5 Years

Congresswoman Loretta Sanchez (CA-47) voted to save U.S. taxpayers billions of dollars by cracking down on waste, fraud, and abuse in government programs. The bipartisan IMPROVE Acquisition Act will reform the defense acquisition system to save American taxpayers $135 billion over the next five years and make sure that the men and women who are risking their lives to safeguard our country get the proper equipment they need to do their jobs and protect themselves on the battlefield.

“As the ranking female on the House Armed Services Committee, I am committed to getting our men and women in uniform the resources they need to do their jobs safely and effectively,” said Rep. Sanchez. “At the same time, we also have an obligation to eliminate waste, fraud, and abuse in government. This bill would help ensure that Congress is making smart investments in projects and programs that enhance America’s security – not those that waste taxpayer dollars.”

The IMPROVE Acquisition Act cleans up waste, fraud, and abuse in the defense acquisition system through four key common sense reforms. It creates a better accountability system, establishes an auditable financial management system at the Department of Defense, improves the management of the acquisition workforce, and expands and strengthens the industrial base. The bill builds on the legislation enacted by the Democratic-led Congress last year to clean up wasteful defense spending and reform weapons system acquisition.

A second measure, the bipartisan Improper Payments Elimination and Recovery Act, targets nearly $100 billion a year in improper government payments that result from poor oversight on the part of federal agencies. This legislation improves transparency in government agencies, prevents improper payments, requires agencies to recover overpayments, and holds top managers at agencies accountable for improper payments or overpayments.

Oklahoma Senate Overrides Abortion Bills' Veto, but Challenge Has Already Emerged

by Grace Huang, Truthout Report

This article was published by Truthout.

Truthout / CC BY-NC 3.0

Though the Oklahoma Senate voted on Tuesday to override Gov. Brad Henry's veto of two abortion bills, the Center for Reproductive Rights has already filed suit, calling the laws unconstitutional.

One of the bills requires a woman to get an ultrasound at least one hour prior to an abortion and to be given a detailed explanation of it. Though three other states require ultrasounds, none require the description of the fetus. The other prevents wrongful life and wrongful birth lawsuits against doctors who withhold information about a pregnancy, which supporters say prevents women from choosing to abort fetuses with disabilities.

Governor Henry, a Democrat, vetoed the first bill on the grounds that it was "an unconstitutional attempt by the Oklahoma Legislature to insert government into the private lives and decisions of its citizens," and that it made no exceptions for rape or incest victims and would be tantamount to "the state victimiz(ing) the victim for a second time" in those cases.

He vetoed the second one because he thought it immoral, saying in his veto message, "It is unconscionable to grant a physician legal protection to mislead or misinform pregnant women in an effort to impose his or her personal beliefs on a patient.

"The Oklahoma House overwhelmingly overrode the two vetoes on Monday. The Senate voted 36-12 on both bills, with the exact number of votes needed to sustain the override. The measures then became law.

Yes, Virginia, There is a Legitimate Case Against Free Trade

by Ian Fletcher, Truthout Op-ed

This article was published by Truthout.

Truthout / CC BY-NC 3.0

There is a myth in wide circulation that the superiority of free trade is simply a settled question on which all serious economists agree. The flip side of this myth, of course, is that anyone who criticizes free trade must either be ignorant of economics, or the spokesman of some special interest which hopes to benefit from trade restrictions. Such critics are not only wrong, the story continues with admittedly impeccable logic, but profoundly worthy of public contempt, as they are necessarily either dumb or corrupt.

Unfortunately, this myth is just that: a myth, promoted by special interests which benefit from free trade, whatever the harm to the rest of the economy. Serious economists actually recognize a number of very serious criticisms of free trade - even economists who ultimately decide that free trade is better than the alternatives. They generally don't talk about the flaws of free trade too loudly, for fear of provoking the public into supporting stupid forms of protectionism, but they certainly know they are there.

Thanks to recent developments in economics (most visibly signaled by Paul Krugman's winning the 2009 Nobel Prize), these criticisms are becoming more serious every day. There is, in fact, an inexorable erosion of the credibility of free trade going on in the academy, not that you'd know it from watching the economists who show up on TV.

Rep. Loretta Sanchez Votes Against Automatic Pay Increases for Congress

Congresswoman Loretta Sanchez (CA-47) today voted for H.R. 5146, a bipartisan bill to stop automatic pay increases for Members of Congress in fiscal year 2011.  This is yet another step Rep. Sanchez has taken to restore fiscal discipline in government and build a strong foundation for Orange County’s economy.

 “Families in my district have been forced to make hard decisions and cut spending to make ends meet. Why shouldn’t Members of Congress do the same?” said Rep. Sanchez, who is a member of the fiscally conservative Blue Dog Democrats. “Our focus must be on getting people back to work, strengthening our economy, and reducing the deficit. That’s what I will continue to fight for in Congress.”

 In 1989, Congress approved a bill that provides lawmakers with an automatic pay raise unless they specifically vote to reject the raise.  Last year, Rep. Sanchez was successful in blocking the fiscal year 2010 pay raise by voting for H.R. 156, a bipartisan bill that is similar to H.R. 5146

Smart Gardening - May 15

What does it take to be a Smart Gardener?  Knowledge – and application of that knowledge – about irrigation, soil care, pest control, energy and wildlife.  Sound complicated?  The Master Gardeners will simplify it as they provide tips for you to save time, money and create a healthier garden.   If you want to be a Smart Gardener, attend this workshop.

The Orange County Great Park Garden Workshop Series, led by the University of California Cooperative Extension Master Gardeners of Orange County , is part of a program designed to introduce community members to the Farm and Food Lab, where they can learn about sustainable home gardening practices for a healthy lifestyle.  

Garden Workshops will be held from 10 AM to noon at the Orange County Great Park Preview Park in the Farm & Food Lab.  The Orange County Great Park is located off the 5 Freeway and Sand Canyon in Irvine .  For more information, please visit to www.ocgp.org or call 949-724-7420.

Career Fair - May 14

The City of Mission Viejo is joining forces with the Orange County Business Service Center, the City of Lake Forest and the Lake Forest Chamber of Commerce to host a Career Fair on Friday, May 14.

The Career Fair is from 10 a.m. to 2 p.m. in the Community Resource Center at the OC Church of Christ, located at 10 Goodyear in Irvine.

The fair is free to the public, and businesses can reserve a table to recruit potential employees for $50. 

People who attend the fair can receive complimentary resume review services from 10:30 a.m. to 1:30 p.m. and take advantage of three business workshops. The first workshop, Networking for Survival, is from 10:30 to 11:15 a.m.; the Interviewing Insight workshop follows from 11:30 a.m. to 12:15 p.m., with Job Search Do's and Don'ts taking place from 12:30 to 1:15 p.m. 

For more information, visit the Economic Development section of the City's Web site at www.cityofmissionviejo.org or www.oclargestcareerfair.com.

Free Vision Screening and California Telephone Access Program Equipment - May 4

The San Juan Capistrano Senior Center on May 4 will offer free vision screening and CTAP telephone equipment for folks who have trouble with vision, hearing, memory and mobility.

The screening and distribution program is from 8:30 to 11:30 a.m. at the San Juan Capistrano Community Center, 25925 Camino del Avion. Optometrists Ryan Onishi and Joseph Kikumoto will offer free vision screenings.

Qualified participants can receive telephone equipment from the California Telephone Access Program (CTAP). Just come with a CTAP application that has been signed by a certifying agent to certify your disability.

The specialized telephones and devices make dialing easier, allow for hands-free operation, flash incoming calls and more.

Reservations for this free program are required and are available by calling the San Juan Capistrano Community Services Department at 949-493-5911.

Carpe Diem on Earth Day: How to Use Executive Authority to Boost Investments, Create Jobs, and Save Oil

By Kari Manlove, Daniel J. Weiss, The Energy Opportunity Team

This article was published by the Center for American Progress.

Download this memo (pdf)

The first Earth Day was April 22, 1970, and was launched at a time when rivers caught fire, smog choked many cities, and pollution went untouched into the air, land, and water. Today our air, land, and water are significantly less polluted due to federal safeguards established since that day. As Earth Day’s 40th anniversary approaches, we are faced with new global economic and security challenges in addition to the continuing need to reduce the same pollutants. These challenges call for comprehensive national action to transition to a clean energy economy.

Greenhouse gas pollution, for example, is altering weather patterns across the globe. NASA reports that the past decade was the hottest on record, beating out the 1990s, which were hotter than the 1980s. Glaciers are melting away in Glacier National Park, Montana, andNew Moore Island in the Indian Ocean, fought over by India and Pakistan, is no longer in dispute because it is underwater due to sea level rise.

The world is shifting to low-carbon clean energy technologies in response to this real and present danger, particularly energy efficiency and renewable electricity. Many of our economic competitors, including China and Germany, have made significant clean energy investments to increase energy efficiency, become more competitive, lower oil dependence, reduce global warming pollution, and reap the economic benefits that come from these investments. President Barack Obama said in his 2010 State of the Union Address that “Providing incentives for energy efficiency and clean energy are the right thing to do for our future because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation.”

UMWA Designated Miner's Representative in Upper Big Branch Investigation - 30 Workers Killed

The United Mine Workers of America (UMWA) has been designated a miners’ representative in the ongoing investigation into the disaster at the Upper Big Branch mine in West Virginia, where 29 miners lost their lives in an April 5 explosion.  Since the explosion, one injured miner has lost his life, bringing the death toll to 30.

“Although Upper Big Branch is a nonunion mine, federal regulations permit the UMWA to represent the miners at any mine if two or more of them designate us to represent them on safety issues,” said UMWA International President Cecil E. Roberts. “That has happened at Upper Big Branch. The federal Mine Safety and Health Administration (MSHA) has confirmed it.

“The UMWA intends to fulfill our responsibility under federal law to the best of our ability.” Roberts said. “Our representatives delivered the papers designating us as miner’s representative to the mine site late Friday afternoon and did gain access to the property.”

The names of the miners making the request are being kept confidential due to their concern of possible retribution by Massey Energy, whose Performance Coal subsidiary operates the mine.

“I want to applaud these workers, who have the courage to want representation from an independent organization with 120 years’ experience of working to improve safety and health in all of America's mines, regardless of union status. We will do everything in our power to live up to the trust they have placed in us,” Roberts said. “In turn, we have the right to be full participants in this investigation, and we will exercise that right.”

“It is in everyone’s interest to find out conclusively what happened on April 5,” Roberts said. “I urge Massey management to continue cooperate fully, and permit all parties to conduct a fair and impartial investigation.”

Small Business Owners Have Mixed Review On Health Law's Tax Credits

By Andrew Villegas, KHN Staff Writer

This article was published by Kaiser Health News.

Everyone wants a tax credit, right? 

Maybe not. Employers, particularly small businesses, are fretting over provisions in the health overhaul they say could burden their companies. They are the same provisions Democrats point to as a plus: tax credits to help small businesses offer health insurance coverage to their employees. 

The U.S. Chamber of Commerce and the National Federation of Independent Business say the tax credits, which will provide a credit worth 50 percent of an employer's contribution toward employee health insurance premiums for the smallest firms, will actually do little to help small businesses afford health insurance. The credits are available in full to firms with 10 or fewer employees who offer an average wage of $25,000 or less. The credit is reduced for employers who have as many as 25 employees and average wages of up to $50,000 annually. Employers with more employees or higher average wages don't get the credit at all. 

In addition, the credits are only available for six years, further complicating long-term efforts to help small businesses afford providing health insurance for their employees, said Amanda Austin, director of federal public policy for the NFIB, which opposed the Democrats’ health reform efforts and the new law. 

The tax credit is emerging as a flashpoint in the ongoing debate about how the reform will affect costs and insurance affordability.