IRS's many safeguards weren't so helpful in tax-exempt case.

Wall Street's helping Congress write financial regulation bills.

Fed trips over its own message on bond buying.

Big business versus Main Street on tax reform.

Red state/blue state divide on taxes deepens.

China to rely more on the market. 

Oversight Dems say they want Lerner to testify, but that her Fifth Amendment rights are clear.

Congressional Republicans fear that step could limit their own investigation into the agency.

FRIDAY'S BIG STORY: 

Threepeat: Even with Congress out of session next week for the Memorial Day holiday, the Internal Revenue Service's (IRS) missteps made in singling out conservative groups for extra scrutiny will probably continue making headlines for a third straight week. 

Since Lois Lerner dropped the "targeting" bomb on May 10 when she answered a planted question at a Washington legal conference, Treasury and IRS officials have spent the better part of the past two weeks trying to explain their actions to irritated lawmakers on both sides of the aisle on Capitol Hill.

Lerner, not surprisingly, has been placed on administrative leave, as head of the IRS division that oversees tax-exempt groups.

In the meantime, Ken Corbin has been named to take her place. 

"The administration has taken a strong step to address serious mistakes," said Michigan Democrat Rep. Sandy Levin. "This and further corrective action are vital in restoring the confidence of the American people.”

Read more...

A bipartisan group of lawmakers from states hit hard by Hurricane Sandy last fall are urging support for a bill that would provide tax relief for those affected.

The group of nine lawmakers argue that the measure would complement billions in federal aid and provide additional assistance to families and businesses struggling to rebuild in the wake of the storm.


"While the Sandy aid we fought so hard for is finally getting to the communities that desperately need it, we know it's not going to be enough to help families and businesses fully recover," said Rep. Bill Pascrell (D-N.J.), a member of the House Ways and Means Committee. 

"This legislation will go a long way toward filling this gap by providing immediate tax relief to those impacted by Sandy's devastation."

Read more...

Lerner will still be paid while on leave, a congressional aide said, as required under civil service rules.

Sens. John McCain and Carl Levin said allowing the IRS official to remain would "erode public trust" in the agency. 

Spring buying season is in full swing with new home sales nearly matching a five-year high last month as the housing market continues making progress. 

Sales increased 2.3 percent in April to a seasonally adjusted annual rate of 454,000, nearly equaling the 458,000 pace in July 2008, the Commerce Department said Thursday. 

The gain builds on a strong upward revision to sales numbers from March.

Comments

The Senate voted 59-33 for an amendment that would reduce crop insurance subsidies for the wealthiest farmers.

Sens. Dick Durbin (D-Ill.) and Tom Coburn (R-Okla.) introduced the amendment, which reduces the crop insurance subsidies by 15 percent for farmers with a gross annual income of more than $750,000.