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  May 20, 2013, 5:48 am

This week: IRS scandal continues to grip Congress

By Peter Schroeder, Vicki Needham and Erik Wasson

Congress’s probe into the inappropriate scrutiny applied to Tea Party groups by the Internal Revenue Service will continue in earnest this week, headlining a busy stretch before the Memorial Day recess.

The House Ways and Means Committee kicked off the grilling with a hearing Friday, and the Senate Finance Committee is next up with a Tuesday hearing on the matter.

The House Oversight Committee will tackle the matter Wednesday, hearing from former IRS Commissioner Douglas Shulman. Lois Lerner, the IRS official who apologized for the practice and set off the scandal, has also been invited to testify.

Meanwhile, the Senate is slated to take up the 2013 farm bill this week.

Majority Leader Harry Reid (D-Nev.) hopes to complete the bill before the Memorial Day recess. The Senate Agriculture Committee reported out the $955 billion bill on Tuesday with a bipartisan 15-5 vote.

Chairwoman Debbie Stabenow (D-Mich.) predicted a strong vote in line with the 64-35 vote the farm bill enjoyed last year. That 2012 bill died after House GOP leaders refused to take up a farm bill in the last Congress.

The floor action is expected to feature amendments on the U.S. sugar program, as well as ones targeting $4 billion in food stamp cuts included in the bill, with liberals looking to reverse the cuts and conservatives looking to deepen them.

The Senate is also slated to vote on the nomination of Richard Cordray to continue as director of the Consumer Financial Protection Bureau (CFPB).

Republicans have vowed to block the nomination as they demand structural changes to the agency.

A Senate panel will chat on Thursday with President Obama's nominee to lead the Commerce Department.

Penny Pritzker, the billionaire Chicago businesswoman, faces her first hurdle toward confirmation in a nomination hearing. The Senate Commerce, Science and Transportation Committee will discuss a broad swath of issues, from creating jobs and increasing exports to manufacturing and weather forecasting.

Pritzker has garnered broad support from Democrats and groups such as the U.S. Chamber of Commerce and the Business Roundtable.

Top regulators will also be appearing before committees this week to discuss a range of economic issues.

The Joint Economic Committee will hear testimony from Federal Reserve Chairman Ben Bernanke, who will give members an update on the nation’s economic picture.

Bernanke will once again face critiques from Republicans wary of the Fed’s efforts to boost the economy, which they warn are ineffective and encourage inflation.

Treasury Secretary Jack Lew will also be testifying on the Hill next week, as he delivers the annual report for the Financial Stability Oversight Council.

He will appear before the Senate Banking Committee Tuesday, followed up by a House Financial Services Committee visit Wednesday.

While the topic at hand is the state of financial markets, Lew will likely also have to field questions about the ongoing dissection of the IRS scandal.

The House Appropriations Committee will meet Tuesday to approve a controversial outline for its 12th annual spending bill. A leaked copy of the so-called 302b allocations shows labor and health programs getting cut 18 percent below sequester levels and the State Department getting a 16 percent cut below the sequester.

In the Senate, appropriators have a number of hearings lined up to discuss spending for military, agriculture and foreign operations needs.

On Tuesday, the House Agriculture Committee will discuss the reauthorization of the Commodity Futures Trading Commission.

On Tuesday, the Senate Budget Committee will discuss the nomination of Brian Deese to be deputy director of the Office of Management and Budget (OMB).

The agency is rife with vacancies: it lacks both deputy directors, an executive associate director and an office of information and regulatory affairs head. Starting this week, the OMB won’t have a controller since Danny Werfel is set to become acting IRS Commissioner.

The Senate Finance Committee on Wednesday will discuss bipartisan legislation that would strengthen the trade facilitation and enforcement efforts of U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE).

The legislation reauthorizes CBP and ICE and directs them to dedicate resources to customs facilitation and trade enforcement, while establishing new tools and high-level trade positions to bolster trade efforts.

The Senate’s permanent investigatory subcommittee will delve into offshore tax shelters Tuesday. Top Apple executives will be on hand to defend their business practices, which include extensive offshore activity.

A House Financial Services subcommittee will discuss qualified mortgages and the ability of borrowers to repay their loans in a Tuesday hearing.

The new rules from the Consumer Financial Protection Bureau require lenders to compile documentation from potential homeowners to determine their ability to repay a loan.

A separate subcommittee for the panel will discuss Wednesday whether big Wall Street banks are effectively “too big to jail.”

Attorney General Eric Holder told Congress that the Justice Department faces challenges in bringing charges against large banks, but later said he was misunderstood, and did not mean it is impossible to prosecute big banks.

Archived under: Domestic Taxes, Appropriations, Budget, Banking/Financial Institutions, Economy, Agriculture
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  May 19, 2013, 10:10 am

Pfeiffer defends White House handling of IRS targeting scandal

By Meghashyam Mali

The senior Obama adviser said the legality of the IRS actions was 'irrelevant' and vowed action.

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Archived under: News, Domestic Taxes, Sunday Talk Shows, Video, In the News, Administration, Sunday Shows
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  May 19, 2013, 6:00 am

Extraordinary measures become standard as US hits debt limit again

By Peter Schroeder

The U.S. bumped up against its borrowing limit Sunday, forcing the Treasury Department to again employ “extraordinary measures."

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Archived under: Budget
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  May 18, 2013, 1:10 pm

Senators want to move forward with Fannie Mae, Freddie Mac reform

By Vicki Needham

Sen. Corker says he doesn't know of an option that would keep Fannie and Freddie as they now are.

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Archived under: Banking/Financial Institutions
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  May 17, 2013, 6:35 pm

Watchdog: Senior Obama administration officials were told of IRS probe last year

By Bernie Becker and Peter Schroeder

Inspector general Russell George stressed that Treasury officials were only notified that an investigation was underway.

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Archived under: Domestic Taxes
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  May 17, 2013, 6:30 pm

Jobless rates drop in 40 states

By Vicki Needham

The job market is showing sustained signs of improvement with the unemployment rates in 40 states dropping in April, the most in six months. 

The jobless rate rose in only three states — Louisiana, Tennessee and North Dakota — and was unchanged in seven, the Labor Department reported on Friday. 

No state reported double-digit unemployment in April. 

At 9.6 percent, Nevada had the highest unemployment rate but it has dropped from 10.7 percent over the last year, the steepest decline of any state.

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Archived under: Economy
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  May 17, 2013, 6:17 pm

IRS official to testify before House Oversight next week

By Bernie Becker

The House Oversight Committee will have a full house at its IRS hearing on Wednesday.

Lois Lerner, the IRS official who first disclosed the agency's targeting of Tea Party groups last week, has confirmed she will attend, a committee aide said. Lerner had declined, through an attorney, to make that clear before Friday, the aide said.

The IRS official will join the deputy Treasury secretary, Neal Wolin; the former IRS commissioner, Douglas Shulman; and Russell George, the Treasury inspector general who wrote the report detailing the IRS criteria that led Tea Party groups to get extra attention. Read more...

Archived under: Domestic Taxes
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  May 17, 2013, 4:30 pm

Rep. Peterson: Pelosi supports farm bill push

By Erik Wasson

“Leader Pelosi is behind us. I’ve talked to her, and she will be supporting us,” Rep. Peterson said.

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Archived under: Agriculture
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  May 17, 2013, 2:13 pm

CBO: Obama budget for fiscal 2014 adds $5.2 trillion in deficits

By Erik Wasson

The office said the Obama plan would increase the deficit this year by $27 billion, to $669 billion.

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Archived under: Budget
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  May 17, 2013, 1:32 pm

House votes to rein in SEC regulations

By Pete Kasperowicz

Under the bill, the SEC would have to ensure the benefits of new rules outweigh their costs. 

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Archived under: Banking/Financial Institutions, House, Votes, Finance
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