Senator seeks secret memo used as ‘loophole’ for Obama regs

[WestVirginiaRebel]

Fox News:

The Obama administration is facing pressure from Congress to release a secret Reagan-era memo allegedly used to this day to shield a slew of executive actions and regulations from congressional scrutiny.

 

At issue is a 1983 memorandum of understanding (MOU) that permits the Treasury Department to “escape” a review of economic costs and benefits when it comes to IRS rules.

 

Sen. Orrin Hatch, R-Utah, says this has helped the administration pursue a range of unilateral changes – and he wants the memo made public.

 

“This non-public MOU between the Treasury and White House further cloaks the regulatory process in secrecy and decreases regulatory transparency at a time when the Executive Branch is attempting to achieve a great deal of policy through regulatory measures generally and tax regulations specifically,” Hatch wrote to Treasury Secretary Jacob Lew.

 

In the letter, the chairman of the Senate Finance Committee argued the memo has been used by the Executive Branch to skirt congressional scrutiny for changes on everything from corporate taxes to ObamaCare. Committee sources told FoxNews.com the memo is a “loophole” being abused in order to reduce transparency.

 

According to Hatch, the 1983 guidance generally allows IRS rules to get around what’s known as the Congressional Review Act (CRA).

 

Under that law, Congress typically has the authority to review and rescind “major” federal regulations -- those with an annual economic impact of $100 million or more. If a rule is listed as “non-major,” the cost-benefit analysis is not required.

 

Here’s the rub: The 1983 memo, according to Hatch, generally describes IRS rules as not “major.”

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Minor loophole for major regulations?