Division on tax policy provides an opportunity for a clustered field of Republican presidential candidates, who often sound identical on social and economic issues, to differentiate themselves.

During his recent swing through the Midwest, President Barack Obama urged Congress to extend a temporary payroll-tax break that allows the average American worker to keep $1,000 of a $50,000 salary rather than paying that money in taxes. Obama wants to extend for another 12 months the 2-percent tax cut that became effective on January 1.

Both Texas U.S. Representative Ron Paul and former U.S. House Speaker Newt Gingrich agree with the extension, their campaigns confirmed to IowaPolitics.com last week. They support keeping the tax on workers' wages at a 4.2-percent rate, rather than the normal 6.2 percent rate, as a way to keep more money in the pockets of middle-income Americans.

But former Massachusetts Governor Mitt Romney and Minnesota U.S. Representative Michele Bachmann approach the payroll-tax cut differently, with an eye toward job creation, deficit reduction, and businesses.

Iowa lawmakers on Thursday adjourned the third-longest legislative session in state history with Republicans touting their success in being fiscally responsible and Democrats lamenting what they saw as too little funding for education.

Adjournment finally came on the last day of the state fiscal year and the 172nd calendar day of session. The only times that the legislature has taken longer to adjourn its regular session were 1967 (when lawmakers adjourned July 2 after 175 days) and 1978 (when session adjourned July 15 after 188 days).

"We all just want to go home," said Representative Matt Windschitl (R-Missouri Valley).

The Iowa House adjourned first at 3:36 p.m. after 61-31 passage of the health-and-human-services budget bill and closing-day speeches by leaders. The Iowa Senate followed by approving that same bill 27-18 and adjourning at 3:43 p.m. Both chambers also approved a one-month budget that continues state services while giving the governor 30 days to review the just-passed bills.

Governor Terry Branstad and legislative leaders were "a few inches away" Monday from agreeing to a state budget, but were "miles apart" on their competing property-tax plans, according to a key Democratic leader.

The Iowa legislature this week entered its seventh week of overtime, with less than three weeks remaining to come to resolution and avoid a state-government shutdown.

Iowa Senate Appropriations Chair Bob Dvorsky (D-Coralville) announced a key development Monday morning in reaching a budget deal that could bring adjournment to the 2011 legislative session. Senate Democrats agreed to spend less than $6 billion in the budget year that begins July 1, which is nearly $400 million less than they originally proposed.

Governor Terry Branstad on Tuesday placed blame for a breakdown in Iowa Statehouse negotiations squarely on the shoulders of the 26-member Senate Democratic caucus, as state government officials began implementing a strategy for a possible shutdown.

"Progress was made until the Senate Democrats met last week and basically told Senator [Mike] Gronstal, 'You don't have the authority to negotiate,'" Branstad said. "I think he tried, in good faith, but his caucus basically said 'no.' So he came back and said the deal's off."

Branstad on Tuesday said that Lieutenant Governor Kim Reynolds will take his place in leading a trade mission to South Korea and China next week so he can continue negotiations on the state budget in Iowa. One month remains before the end of the fiscal year - June 30. Branstad said Republicans thought Senate Democrats were going to provide a counter-proposal on the budget late this past week, but that didn't happen.