WASHINGTON - Sen. Chuck Grassley of Iowa is asking the Obama Administration to explain a new requirement that employers certify that they did not reduce their workforce to become eligible for a delay in complying with Obamacare.

"If the Obama Administration is so certain that PPACA (Patient Protection and Affordable Care Act) will not lead to a reduction in employment, it begs the question: What is the point of the certification process?," Grassley wrote in a letter to Treasury Secretary Jack Lew and IRS Commissioner John Koskinen.  "The requested information is completely unnecessary, unless the Administration believes the employer mandate is so harmful to businesses that they would rather reduce their workforce than comply.

"The regulation appears to be no more than political theatre, designed to provide the Administration with an unverifiable talking point that employers did not lay off workers in order to avoid complying with PPACA. If the Administration believes, as I do, that the employer mandate will cost jobs, the responsible thing to do would be to ask Congress to repeal this provision."

The health care law requires employers to provide insurance to their workers or pay a penalty.  The Obama Administration has imposed several delays of the mandate, most recently announcing that employers with 50 to 99 full-time employees will be exempt from the employer mandate until January 2016.  To be eligible for the delay, an employer must certify that it has between 50 and 99 employees, and that it has not reduced its workforce to fall into that category.  Grassley believes the certification appears pointless and unverifiable.

The text of Grassley's letter is available here.

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WASHINGTON - Senator Chuck Grassley of Iowa said today that Anamaria Angel of Waukee has received an appointment to the U.S. Military Academy at West Point for the 2014-2015 school year.

Angel is the daughter of Jeanie Angel of Waukee.  She will graduate in May from Van Meter High School.  Angel participated in softball, track, concert band and marching band.  She is a member of the Junior ROTC Red Bull Battalion-Central Campus, MSA Softball and the National Youth Leadership Council.  Angel is also a trainer for Paws and Effect, a service dog training organization for autistic children.

"Admission to the service academies is highly competitive and a great honor," Grassley said.  "Students work very hard to earn this kind of opportunity.  I wish Anamaria well and thank her for her commitment to serve our nation."

Angel was among the 55 Iowans Grassley nominated this year for appointments to the U.S. service academies.  Information about seeking nominations can be found on Grassley's website.

For more than 200 years, these academies have educated and trained individuals to lead and command the U.S. armed forces.

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WASHINGTON - Senator Chuck Grassley of Iowa said today that Zachary Weston of Cedar Rapids has received an appointment to the U.S. Naval Academy in Annapolis, Md., for the 2014-2015 school year.

Weston is the son of Julia and J. Michael Weston.  He will graduate in May from Washington High School.  Weston participates in swimming, tennis, Madrigal Singers Chamber Choir and Washington Concert Choir.  He is a member of Committee WHS, Kiva, National Honor Society, Fellowship of Christian Athletes, National Council for Youth Leadership, and serves as class vice president.

"Admission to the service academies is highly competitive and a great honor," Grassley said.  "Students work very hard to earn this kind of opportunity.  I wish Zachary well and thank him for his commitment to serve our nation."

Weston was among the 55 Iowans Grassley nominated this year for appointments to the U.S. service academies.  Information about seeking nominations can be found on Grassley's website.

For more than 200 years, these academies have educated and trained individuals to lead and command the U.S. armed forces.

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Q:        What is the status for approval of the Keystone XL pipeline project?

A:        After nearly six years of rigorous regulatory review, approval for the more than 1,700-mile Keystone XL oil pipeline remains in limbo.  The TransCanada Corporation awaits a U.S. Presidential Permit to begin construction of the transcontinental infrastructure connecting a 36-inch pipeline system from Alberta, Canada, to Steele City, Nebraska.  Starting from the oil sands of Canada through the Bakken region in Montana and North Dakota, the pipeline would carry up to 830,000 barrels per day of crude oil to U.S. refineries in the Gulf Coast region.  Its completion has the potential to bring enormous economic growth and energy stability to the United States. Imagine if the United States would be able to supply 100 percent of its fossil fuel demand from North American sources.  Giving the green light to the Keystone XL pipeline would help get us closer to making that a reality.  There's a lot riding on the decision.  Policymakers and regulators are factoring into account its potential effect on job creation; energy independence; air, water and soil quality; and, economic growth.

Q:        What is holding up the approval process?

A:        As with most areas of public policymaking, politics looms large in the debate.  With all that's known to date, approval of the Keystone XL pipeline is good for America.  It would improve our energy stability, jump-start economic growth and job creation (this is genuinely a shovel-ready jobs and infrastructure project of the kind the President likes to champion) and reduce reliance on foreign sources of oil, and that's beneficial for America's national security interests.  Let's consider a few of the President's possible choices.

1.         Transport oil through America's Midwest rather than importing it from the Middle East.

2.         Transport oil via underground pipeline rather than posing greater risks to public, traffic and environmental safety with alternative shipment by rail or road.

3.         Lead the way on regulatory approval, oversight and compliance of traditional fuels and oil development.

As the President has said when it comes to meeting the needs of America's energy supply-and-demand equation, the answer to the question is:  "All of the above."  Keep in mind that relentless scrutiny by environmentalists, landowners, residents and local leaders along the proposed route through the Ogallala Aquifer in Nebraska prompted TransCanada to reroute the Keystone XL pipeline.  The new route under review recognizes efforts to safeguard the natural resources of the Sand Hills.  Like many Iowa farm families, I appreciate the ecological impact and property rights issues that have been raised.  Robust debate helps identify problems and resolve differences.  That's the beauty of America's system of self-governance and checks and balances.

Q:        What are next steps?

A:        The U.S. State Department recently released its final long-awaited environmental impact review.  Its analysis concluded the pipeline would not bear significant environmental impact and would provide the safest way to transport oil.  It also found that rejection of the pipeline will not affect Canada's decision to develop these oil resources.  Let's not be naive.  If the President rejects the permit application, TransCanada is not going to pick up its marbles and get out of the oil business.  Canada will continue to develop its resources.  President Obama has an opportunity to advance U.S. energy security by forging a partnership with one of our most stable trading partners on the planet.  This is a golden opportunity to put the public interest above political interests.  From national security advisors to labor leaders, members of the military and veteran service organizations and bipartisan advocacy on Capitol Hill, there is ever-growing public support for Keystone XL.  In March 2013, President Obama told the Senate Republican Caucus that he would make a decision on the Presidential Permit before the end of 2013.  It's time for a Presidential decision in support of the Keystone XL pipeline.

Wednesday, February 19, 2014

Sen. Chuck Grassley of Iowa requested a report from the Government Accountability Office, released today, called: "Medicaid/Demographics and Service Usage of Certain High-Expenditure Beneficiaries."  Grassley made the following comment on the report.  The report is available here.

"If Congress is going to look at changing Medicaid to make it sustainable for the people the program serves and for federal and state taxpayers, knowing where Medicaid spends money should be a high priority.  This work by the GAO should inform the conversation." 

Sen. Chuck Grassley of Iowa, Ranking Member of the Senate Judiciary Committee, today made the following comment on guidance from the Obama administration designed to guide banks in serving marijuana sellers in states that have legalized the drug.

"Marijuana trafficking is illegal under federal law, and it's illegal for banks to deal with marijuana sale proceeds under federal law.  Only Congress can change these laws.  The Administration can't change the law with a memo.  While the Justice Department's memo tries to guide prosecutorial discretion, that discretion shouldn't be used to facilitate illegal conduct.  The Justice Department is encouraging an improper use of prosecutorial discretion.  This is just one more area in which the Obama Administration is undermining our system of checks and balances and the rule of law."

Q:        Is there a one-stop shop for frequently asked questions during tax filing season?

A: The Nobel-winning physicist Albert Einstein reportedly said, "the hardest thing in the world to understand is the income tax."  That's something coming from the man whose last name is interchangeable with genius.  The Presidents' Day holiday weekend typically kicks off the busiest weeks of tax filing season leading up to the tax-filing deadline on April 15, 2014.  The IRS encourages taxpayers to visit IRS.gov as the easiest, fastest, most convenient way to get answers.  The IRS also launched a daily tax tips service that taxpayers may access for free by e-mail subscription.  Through April 15, the IRS will send daily, easy-to-read tips on frequently asked questions that affect millions of taxpayers.  The daily reminders offer insight into often-overlooked tax credits or deductions, consumer alerts, refunds, etc.  Visit IRS.gov for more information.  One of the biggest tips may be to file electronically if possible.  According to the IRS nearly 120 million taxpayers chose to file their tax returns electronically last year.  The IRS says it is the safest, fastest and easiest way to submit individual tax returns.  Since 1990, taxpayers have e-filed more than 1 billion Form 1040 series tax returns.

 

Q:        What is the Free File program and is it affiliated with the IRS?

A:        Yes.  Taxpayers who qualify for this program will find it an efficient, user-friendly tool to help them prepare, complete and e-file their 2013 federal tax returns free-of-charge.  Since 2003, the IRS has partnered with a coalition of 14 private-sector tax software providers to offer free tax prep and electronic filing options for individual taxpayers.  Those with adjusted gross incomes in 2013 of $58,000 or less may qualify to use this service.  That makes 70 percent of U.S. taxpayers eligible to take advantage of this free-of-charge, online tax preparation service.  In the last decade, 40 million taxpayers have filed their federal taxes through Free File.

 

Q:        How do eligible taxpayers access this service?

A:        First, taxpayers must have access to a computer and the Internet.  Then, go to www.IRS.gov/freefile to take a look at the brand-name software companies from which you may choose to prepare and e-file your federal tax return for free.  Once you have selected the tax software provider, you will be directed to that company's website.  From there, the company will provide step-by-step online assistance to answer tax law questions and resolve technical issues.  The participating companies offer the most commonly filed tax forms through this service.  Tax refunds may be issued within 10 days.  The online service is available in English and Spanish.  Taxpayers who are above the income limits and who do not require tax preparation assistance may access Free File's basic e-filing service.  Go to www.IRS.gov/freefile to find the Free File Fillable Forms to complete and file electronically.  All participating Free File Alliance companies are subject to privacy standards in accordance with Treasury Department regulations and may not use or disclose tax return information without consent of the taxpayer.

 

Q:        What help is available for taxpayers who don't have access to a computer?

A:        According to a recent internal watchdog report, the IRS answered only six in 10 phone calls from taxpayers seeking help in the last fiscal year.  That added up to nearly 20 million unanswered phone calls.  Taxpayers who did get through were put on hold on average 17.6 minutes.  For taxpayers below a certain income and older taxpayers who don't have access to a computer, two volunteer-based programs are available throughout local communities across the country, offering tax assistance through April 15.  The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) Programs offer free tax help for taxpayers who qualify.  These programs offer face-to-face help with simple tax return questions.  VITA offers help to people who make $52,000 or less.  TCE gives priority assistance to people age 60 and older.  To locate a VITA site in your area, call toll-free (800) 906-9887.  To locate the nearest TCE site, call toll-free (888) 227-7669.

 

Q:        Does the IRS need more money to better serve taxpayers?

A: From my assignment on the Senate Finance Committee, which has legislative and oversight jurisdiction over the Internal Revenue Service, the IRS for years has come to Congress asking for more money to do its job.  As with any federal agency, the IRS often attributes poor performance to under-funding.  But wasteful employee conferences and a reluctance to embrace whistleblowers who expose tax fraud are examples of how the agency could and should do more with its existing resources before seeking more money.  I'll continue to look for ways to improve customer service at the IRS and ensure the agency offers the most bang for the taxpayers' buck.

 

Friday, February 14, 2014

During his State of the Union address, the President said that success is limited only by the "strength of our work ethic and scope of our dreams."  By pointing out "the son of a barkeep is Speaker of the House," the President identified a unifying principle in which 535 lawmakers and the President can agree.  America is the land of opportunity.  Americans enjoy an inherent right to work for their own success and keep the lion's share of what they've earned.

To allow space for a thriving economy and civil society in which Americans can pursue their own dreams, the nation's founders enshrined principles of self-governance in the U.S. Constitution that created separation of powers among three branches of government.  The people's branch makes the laws.  The executive branch enforces the laws, and the judicial branch interprets the laws.

That's why it's alarming to hear the President report to America that he will bypass Congress when he sees fit.  It appears he's prepared to circumvent the Constitution and ignore our system of checks and balances.  Armed with his phone and a pen, the President has signaled he will unilaterally evade the will of the people as expressed through one of the co-equal branches of government.  Considering steps already taken by this Administration in the last year, it is cause for concern when the President says that 2014 will be a "year of action."

Keep in mind where the Obama administration already has taken liberties with its interpretation of the Constitution and laws passed by Congress:

Advice and Consent. The Supreme Court in January heard oral arguments to determine whether President Obama overstepped a constitutional boundary by appointing nominees to the National Labor Relations Board.  The President claimed the Senate was in recess, unable to provide advice and consent.  However, the Senate was holding pro forma sessions, not adjourned in recess.

Controlled Substances Act. The Obama Administration sent a dangerous, mixed signal to youth and local law enforcement across America when the Department of Justice announced it would not prioritize the prosecution of the large-scale trafficking and sale of marijuana. The Controlled Substances Act criminalizes the cultivation, trafficking, sale and use of marijuana. I'm hearing from Iowa law enforcement of a troubling increased presence of marijuana stemming from Colorado's legalization of medical marijuana.  With full legalization now in effect, this problem is likely to worsen.  As co-chairman of the Senate Caucus on International Narcotics Control, I agree with a top official at the Drug Enforcement Administration who testified that efforts to legalize marijuana are "reckless and irresponsible."  Marijuana is widely recognized as a gateway drug to other illicit, lethal drugs.  Considering the implications to local law enforcement, public health and traffic safety, the Justice Department's "wink and a nod" approach to enforcing the Controlled Substances Act is more than disappointing.

Affordable Care Act. The Administration's signature health care law had a miserable debut in October with the rollout of HealthCare.gov.  Aside from on-going sign-up snafus, the President has enforced the Affordable Care Act as with the help of a roulette wheel, picking and choosing which mandates, waivers, penalties and fees to enforce.  It's a gamble the nation's recovering economy and growing national debt cannot afford.  Everyone agrees the Affordable Care Act has systemic flaws.  Now the President is using his pen to re-write the law without congressional consent.  It sure would be helpful if the President also had a magic wand up his sleeve.  He could use it to jump-start economic growth since productivity will drop over the next decade when as many as 2.5 million workers drop out of the workforce due to the new disincentive to work created by the Affordable Care Act, according to an analysis by the nonpartisan Congressional Budget Office.  When people exit the workforce, it's bad for economic growth.

So much for the President's call for a "year of action."  The Administration is on track for a year of overreaction.  Overstepping constitutional limits or enforcing laws for political convenience sow bad seeds into our system of self-government.  If allowed to take root, their growth would have a corrosive effect on the people's right to be heard through their elected representatives.

Centralizing power into the executive branch renders the commander-in-chief the only arbiter of the public good.  Therein lies the rub.  Limited government, separated into three branches, protects the individual rights of citizens.  Each branch has constitutional oversight authority to prevent overgrowth of one branch over the other on America's tree of freedom and liberty.

It's time for a reality check.  In keeping with the President's stated commitment to unprecedented levels of openness and transparency, I've written to the U.S. Attorney General to direct the Department of Justice to publicly disclose its legal analyses of all executive orders by the President.  Since passage of the Judiciary Act of 1789, the Attorney General has been authorized to render opinions on matters of law and issues of constitutionality.

The American people and Congress ought to know if the President's executive orders have withstood rigorous constitutional review.  If the President can't persuade the people's branch on the merit of his ideas, the American people have a right to know if his ideas are being implemented in a way that is consistent with the Constitution.

Friday, February 14, 2014

Legislation would help lower the costs of biodiesel

WASHINGTON, D.C. - U.S. Senators Maria Cantwell (D-WA) and Chuck Grassley (R-IA) have introduced bipartisan legislation to reinstate a tax incentive for the production of domestic biodiesel that will help spur job creation and boost America's supply of cleaner alternatives to imported fossil fuels.

The measure, the Biodiesel Tax Incentive Reform and Extension Act of 2014, or S. 2021, would reform and extend the $1-per-gallon tax credit for biodiesel producers through 2017 after Congress allowed the law to lapse at the end of 2013. Congress has allowed the credit to expire three times since the end of 2009.

"Investing in America's clean energy economy is the smart thing to do for our environment and America's energy security," Cantwell said. "Biodiesel is America's first advanced biofuel, which can be made from a variety of feedstocks such as cooking grease and soybeans. This legislation gives businesses the certainty they need to invest in biodiesel and the development of affordable, domestic alternatives to fossil fuels."

"When investors suspend their funding of clean energy production, jobs fall by the wayside," Grassley said. "Continuing incentives for biodiesel and other green energy sources supports jobs, helps the environment and increases energy independence. There's every reason to support biodiesel production."

Industry growth stopped after Congress let the credit expire in 2012 and production remained flat at just under 1.1 billion gallons - the same level as 2011. When the credit was reinstated in 2013, the U.S. biodiesel industry produced1.8 billion gallons in that year.

The bipartisan Biodiesel Tax Incentive Reform and Extension Act of 2014 would provide predictability to investors and producers so the United States can continue moving forward to displace imported fossil fuels with low carbon, renewable biodiesel. Biodiesel reduces greenhouse gas emissions by as much as 86 percent when compared with petroleum diesel, according to the Environmental Protection Agency (EPA). Biodiesel is America's first commercial-scale U.S. fuel to meet the EPA's definition of an advanced biofuel. EPA approved feedstocks include waste oils (like restaurant grease); animal fats; algae; cover crops; inedible oils from ethanol production; and secondary oils from crushed soybeans and canola seeds.

Specifically, the Cantwell-Grassley measure:

  • Provides a $1 per-gallon tax credit for the production of biodiesel, renewable diesel and aviation jet fuel that complies with fuel standards and Clean Air Act requirements.
  • Increases the credit from $1 to $1.10 for the first 15 million gallons of biodiesel produced by small producers with an annual production capacity of less than 60 million gallons.
  • Eliminates potential abuses and simplifies how the tax is administered by restricting the credit to fuel producers and excluding fuel blenders from eligibility. By focusing on production, this bill would eliminate any remaining opportunity for abuse known as "splash and dash" in which oil companies add a few drops of biodiesel to petroleum diesel to qualify for the tax credit. The change also ensures the credit benefits domestic producers - the old law allowed blenders to receive the credit for blends that included foreign-imported biodiesel.
  • Simplifies the definition of "biodiesel" to encourage production from any biomass-based feedstock or recycled oils and fats.
  • Tightens compliance and reduces administrative burdens on taxpayers by simplifying the coordination between the income tax credit and the excise tax liability.
  • Extends this tax credit for three years, giving needed financial predictability so that more facilities can be brought online in the United States.

The biodiesel tax credit continues to play an important role in supporting the development of this advanced biofuel that displaces foreign petroleum, provides environmental benefits, and promotes jobs and economic development, particularly in rural America.

 

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Wednesday, February 12, 2014

 

Video can be found here.

 

This week the Senate is considering legislation that would repeal an expected cut in the cost-of living adjustment for military retired pay for retirees who are under age 62.

This cut was included in the federal budget bill that passed late last year.  No VA benefits are affected one way or the other.  But, retirement benefits for these retirees were partially cut in the budget agreement. This has caused quite an uproar, with many voicing concerns that this was not the right decision. Those voicing concern supported legislation to repeal it.

The issue is finding other savings somewhere to pay for the restoration of these benefits.  We need to find other places to save so that we don't add $5.7 billion to the deficit.

I support restoring the cost-of-living adjustment.  These retirees have honorably served their country.  They were made a promise years ago when they joined the military.  Changing the rules in the middle of the game like this is simply unfair.  We need to work to find other places within the budget to save so that we can keep our promise to these military retirees.

In a weekly video address, Senator Grassley discusses legislation that the Senate is considering that would repeal an expected cut in the cost-of living adjustment for military retired pay for retirees who are under age 62.

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