A top House Republican sought Thursday to tie a contentious corporate disclosure proposal before the Securities and Exchange Commission to the IRS scandal, suggesting both reflect an overtly politicized federal government.

Financial Services Committee chairman Jeb Hensarling said the IRS’ apparent targeting of conservative groups raises questions about how pervasive “tactics of harassment” have become within the Obama administration, saying the scandal is “right out of the Watergate playbook.”

The Texas Republican, during a budget hearing, warned new SEC chairman Mary Jo White that her agency could similarly be viewed as acting in a partisan manner if it pursues a rule requiring public firms to report their political spending to shareholders.

Hensarling said the proposal “is well known to be part of a partisan political agenda of labor union bosses.”

“Now the American people are horrified at those who would use the strong arm of government for partisan political advantage, but it remains to be seen whether this could ever happen at the SEC,” Hensarling said. Read more...

Conservative lawmakers unsatisfied with the resignation of acting IRS Commissioner Steven Miller are weighing whether a special prosecutor needs to be called in to look into political targeting by the Internal Revenue Service. 

House Tea Party Caucus head Rep. Michele Bachmann (R-Minn.) said the IRS cannot be trusted to police itself, and the Department of Justice has a credibility problem. As a result, an outside investigation should be considered, she said.

Wisconsin Gov. Scott Walker (R) promised on Wednesday to lower state income taxes if Congress approves online sales tax legislation.

In a letter to the state's members of Congress, Walker said the Wisconsin Department of Revenue estimates that the online sales tax bill would bring in $95 million in additional state revenue every year.

"I want to make clear, should federal Marketplace legislation become law, my intention would be for any resulting additional revenue be used to provide individual income tax relief for Wisconsin’s taxpayers," Walker wrote.

The new commissioner will replace Steven Miller, who resigned Wednesday amid the fallout over the targeting of conservative groups.

At least 17 groups are preparing lawsuits over the agency's improper targeting of conservative organizations. 

After weeks of delays, a Senate panel approved President Obama's nominee to lead the Labor Department on Thursday in a party line vote.

Thomas Perez, the head of the Justice Department's Civil Rights Division, cleared the Senate Heath, Education, Labor and Pensions Committee on a 12-10 vote. 

Perez is facing stiff resistance from Senate Republicans, and his nomination remains in jeopardy as it heads to the full Senate. 

Panel chairman Tom Harkin (D-Iowa) said Perez's nomination "couldn't be more timely and important" as the nation's economic recovery limps along. 

Regulators weaken rule, allowing banks to keep control over derivatives.

First-time jobless claims jumped sharply last week, a possible signal that businesses are laying off workers over concerns about the effects of across-the-board spending cuts and tax hikes from the sequester.

The number of workers seeking unemployment benefits increased 32,000 to a seasonally adjusted 360,000, the highest level since the end of March, after hitting a five-year low the previous week, the Labor Department reported on Thursday. 

But the four-week moving average, a figure that provides a better trajectory of where the labor market is headed, rose 1,250 to 339,250, a level that reflects steady hiring. 

The bill expected on the House floor in June, is scored as reducing the deficit by $39.7 billion over 10 years.