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UPI's Capital Comment for April 3, 2003

WASHINGTON, April 3 (UPI) -- Capital Comment -- Daily news notes, political rumors, and important events that shape politics and public policy in Washington and the world from United Press International.

The dynamic, err, static duo...

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For years, proponents of the supply-side school of economic theory have fought to have the Congressional Budget Office use dynamic analysis rather than static analysis when considering the impact of proposed tax cuts or increases on the overall economy.

The argument is that dynamic analysis takes into account changes in economic activity that would occur as a result of changes in tax policy and are, therefore, a more accurate measure of how the economy would respond and what the impact would be on federal revenue.

Under the heading of "be careful what you wish for," the CBO released last week a dynamic analysis of the president's 2004 budget. Using a variety of economic models, the agency looked at how the 2004 tax and spending proposals, taken together, would influence the economy and how that would affect government spending and tax revenues.

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Some on Capitol Hill are praising CBO's effort to conduct a dynamic analysis, even on an advisory basis, but are concerned that by combining the proposals, the stimulating effect of the economic growth package on the U.S. economy has been severely underestimated.

An analysis of the analysis released Monday by the Congressional Joint Economic Committee says that while the CBO does not report separate results for the (president's) growth package, "we can infer from its findings that the president's growth package is likely to provide a significant boost to long-run growth. However, that boost is substantially offset by the economic drag of spending increase...

"The CBO concluded that the tax and spending proposals in the president's budget, taken together, would have relatively small impacts on overall economic activity in the long run ... The CBO's 'dynamic' projections of the fiscal impact of the president's budget thus differ relatively little (roughly plus or minus 15 percent) from its usual 'static' projections," the JEC document says, suggesting that somebody is planning on taking a serious look at how CBO got its numbers.

Getting it written...

Author and columnist William F. Buckley, Jr., made a rare appearance last week at a Washington Barnes & Noble bookstore to promote his new book, "Getting It Right," published by Regnery. The near-60 attendees braved cold, rain and a sinkhole that collapsed a street in the pricey Georgetown neighborhood near the bookstore, wreaking havoc on late rush-hour traffic to the reading and book signing.

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The historical novel explains how and why the broader American conservative movement Buckley helped found and for years led purged the most extreme elements from its ranks, including the John Birch Society and the Objectivists gathered around author Ayn Rand, on its long march to political credibility, political influence and, ultimately, political power.

When asked to compare the paranoia manifested in the Bircher movement, a key theme of the novel, with the expressions of concern about a so-called vast, right-wing conspiracy voiced by many current politicians, the author smiled and observed, twinkle in his eye, that "people who denounce the existence of conspiracies spend a lot of time looking for them."

Flying tribute...

Some people said that Joe Foss was the greatest U.S. fighter pilot of all time. The top Marine air ace of World War II, Foss shot down 26 enemy planes in the Pacific between October 1942 and January 1943 and was awarded the Medal of Honor, the nation's highest military decoration.

Returning home to South Dakota, he was elected governor in 1954. After losing a congressional race in 1958 to Democrat George McGovern, Foss went on to become the first commissioner of the American Football League, resigning from the post in 1966 just prior to the AFL's merger with the National Football League. He had a successful career as host of several television sports programs and, late in his life, served for two years as president of the National Rifle Association, one of the country's largest political and sports organizations.

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When Joe Foss died on Jan. 1, he took a little bit of America with him. Now gone but not forgotten by those who are always faithful, an expeditionary airfield in the Iraqi theater of war has been named MCAS Joe Foss in his honor.

Under new management, again...

The American Spectator, whose editors brag is the only political magazine to ever have it own independent counsel, is bringing aboard Alfred Regnery as its new publisher. Regnery, who has for years headed the publishing firm founded by his father in the late 1940s, guided it to new heights. Now a part of Eagle Publishing, Regnery has published seven New York Times best sellers in the past year.

He tells folks he was looking for a new challenge and the Spectator, which has been knocked down a few pegs in the aftermath of the Clinton-era, seemed the right idea at the right time. Regnery is stepping down as president and publisher, to be replaced by Marji Ross, but will remain on the company's board. As always, the irrepressible and insightful R. Emmett "Bob" Tyrrell remains editor in chief of the magazine.


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