Wednesday, July 11, 2012

Sen. Chuck Grassley of Iowa is receiving media questions about a new video from President Obama's campaign that includes a Grassley clip.  The following is a statement from a Grassley spokeswoman:

"The video clip lacks any context and is blatantly misleading.  In the clip, Sen. Grassley is talking about tax policy for tax-exempt organizations.  The ad is talking about tax policy for other kinds of taxpayers.

"The Grassley clip comes from a March 2010 nomination hearing in the Finance Committee.  In his comments and questions, Sen. Grassley was revealing that President Obama's nominee for Treasury Under Secretary of Domestic Finance - Jeffrey Goldstein - was a partner in a firm that engineered offshore accounts for tax-exempt organizations/businesses to avoid Unrelated Business Income Tax (UBIT), even while President Obama had attacked offshore vehicles for avoiding taxes."

Background:

The hearing record is available here.  Sen. Grassley's back-and-forth with Jeffrey Goldstein is on pages 13-16 and pages 75-81.

Sen. Grassley's oversight of UBIT goes back to his reviews of tax-exempt hospitals and other nonprofit oversight.  A Finance Committee hearing in 2007 highlighted how charities avoid taxes with offshore funds.  This testimony led to Sen. Grassley's oversight of tax-exempt university endowments.  UBIT is designed for tax-exempts that engage in commercial activity.  Boys and Girls Club is a good example, as it's used offshore tax havens to shield otherwise taxable income from taxation.  Boys and Girls Club is not only tax-exempt but also receives taxpayer funded federal grants.

In August 2011, Sen. Grassley wrote to President Obama asking for his definition of tax loophole (below).  The Treasury Department responded, saying it agreed with Sen. Grassley that tax loopholes are unintentional benefits derived by taxpayers who may have found a way to game the system.

For Immediate Release
Tuesday, Oct. 18, 2011

Grassley Urges Attention to Charitable Loophole Subsidized by Taxpayers

WASHINGTON - Sen. Chuck Grassley of Iowa today urged the Administration and congressional colleagues to take action to limit or close a charitable loophole that taxpayers heavily subsidize yet results in financial gains for a few principals and very little money for charities. At a Finance Committee hearing today, Grassley gave the example of the George Kaiser Family Foundation, which is in the news as a key investor in the now-bankrupt Solyndra solar energy company.

Grassley said the George Kaiser Family Foundation converted from a private foundation to a supporting organization about ten years ago, as reported by The New York Times in 2005.  He said if the organization had remained a private foundation, it likely would not have been able to invest as much as it did in Solyndra or the other private equity or hedge funds in which it invested.  It also would have been subject to strong restrictions on self-dealing and excise taxes on its investment income.  The donors who contributed $1 billion in cash and securities, including non-publicly traded securities, over the past three years would have been subject to lower limits for deductibility if it had remained a private foundation.

"So, with Solyndra, the government didn't just lose out on its investment through the $535 million loan guarantee," Grassley told the Finance Committee. "It also lost out on the tremendous subsidy it provided the George Kaiser Family Foundation through the charitable contribution deduction."

Grassley urged the Finance Committee leaders, as they schedule tax reform hearings, to schedule a hearing "to examine the standards for tax exemption and the increasingly blurred line between public charities and private foundations."  Grassley also wrote to the Treasury secretary and the IRS commissioner, citing the George Kaiser Family Foundation example and urging them to finish a long-overdue study on appropriate pay-out rates for supporting organizations.

Grassley wrote in his letter, "The study was intended to inform the Treasury as to what was an appropriate pay-out level.  The idea was that the pay-out requirement should be no less than what is required of private foundations since these supporting organizations were clearly formed to skirt the private foundation rules.  If the Administration is serious about closing loopholes, it should prioritize the completion of the study and the finalization of the pay-out rules for those supporting organizations Congress deemed to be exploiting the tax code.  Both of these will be helpful as Congress continues to consider tax reform."

Grassley is a senior member and former chairman and ranking member of the Finance Committee, with exclusive Senate jurisdiction over tax policy.
Grassley's statement at the Finance Committee today is available here.

Grassley's new letter to the Treasury and IRS is available here.

Grassley's staff analysis of the George Kaiser Family Foundation is available here.

Grassley's Aug. 11, 2011, letter to President Obama on the definition of tax loopholes is available here.

Treasury's Oct. 3, 2011, response is available here.
The Grassley-Baucus 2005 letter to Treasury regarding supporting organizations and a related press release are available here.


-30-

 

Scholar Says They Empower a World of Bystanders

Despite the international outrage they provoke, genocides have flourished since World War II, when the term was first coined.

"Cambodia, Rwanda, Bosnia and Sudan offer contemporary examples of a practice that is one of the most aberrant examples of human behavior," says Renata Reinhart, author of In the Course of My Life (www.rexvita.com), a fact-based novel that recounts the little-known Soviet genocide of 2 million Eastern Germans in 1945.

"Many of these ethnic cleansings, including the slaughter in East Germany, don't come to the public's attention because they're kept secret or denied," she says. "In the case of East Germany, both England and the United States were complicit, so it's not a story they're eager to tell.

"But if history is written by the victors, then we have an obligation to get it right -- the best predictor of future genocide is denial of a past genocide."

One phenomenon that helps perpetuate the practice is psychic numbing - a person's inability to feel compassion for large numbers of people, Reinhart says.

"In a recent experiment, psychologists asked Americans to contribute money to a starving African orphan, and about half were willing. But when two orphans were presented, far fewer Americans were willing to contribute," she says.

Neuroscientific research has found evidence of psychic numbing, says Reinhart, who thinks it may be the response of an overwhelmed brain.

"We can easily conceive of helping one person, but any more than that and real help can seem implausible," she says.

However, she adds, when people are aware of trustworthy organizations making a positive impact, they're more likely to offer their own help. She recommends these:

• Genocide Watch: Dr. Gregory Stanton, president of the charity organization aimed at preventing genocide, recently published a two-pronged approach to turn the tide of mass murder, which is occurring in several hot spots throughout the world today. One prong includes compassion and awareness from the global community, and the other is an institution or institutions to track and prevent genocide, or at least hold leaders responsible.

• Women for Women International: "The cure for poverty has a name: The empowerment of women," said by the late world-renowned journalist and public intellect Christopher Hitchens. This charity is a humanitarian organization that provides emotional and financial support to women survivors of war. Job training and business development are just a few of the programs that assist impoverished populations, a preemptive measure against vulnerability, war and mass murder.

• CARE: This is another international group focused on women because, as its mission statement reads, "equipped with the proper resources, women have the power to help whole families and entire communities escape poverty." The organization's efforts includes the prevention of spreading disease, improved basic education, increased access to clean water and sanitation, and increased economic opportunity.

• Africare: The oldest and largest African-American led organization in the interest of aiding the continent; the group's initiatives include agriculture, micro enterprise, health, environment and women's empowerment.

• International Peace Institute: IPI is an independent, not-for-profit think tank with qualified staff representing 20 different nationalities, located near the United Nations in New York City.

"There are plenty of impactful charities that can be easily reviewed online," Reinhart says. "The events of genocide tend to begin from a chain of prior states, especially poverty and ignorance. My message is an educational effort, and I hope I contribute to the solution."

About Renata Reinhart

Renata Reinhart is the pen name of the author, a scholar of World War II history who spent years researching the Red Army's march across Eastern Europe in 1945. While the book is fictionalized as a memoir, the historical elements are accurate and based on numerous documented sources.

Supports House efforts to repeal the health care reform law; wants to replace with true efforts to lower cost

Washington, DC - Congressman Bobby Schilling (IL-17) today released the following statement after voting in favor of H.R. 6079, legislation to repeal the Affordable Care Act:

"The wait on the health care reform law's constitutionality is over, but the uncertainty remains for folks across the country," said Schilling.  "Workers are unsure of how this law will change their current health care plans or impact their employment, and business owners are unsure of what complying with the law will cost them in time and resources.  Meanwhile, health care costs continue to rise.  

"My goal is to make health care affordable and accessible, and this law just doesn't do the trick.  I will continue working with anyone I can to roll back this law and replace it with efforts to guarantee folks in Illinois' 17th Congressional District and throughout the country have access to health care that's high quality, patient-centered, convenient, and affordable."

Believing it is important for Members of Congress to lead by example, Schilling rejected the Congressional health care plan and brought his own health care plan to Washington.  As the father of 10, he knows well the need to reduce the cost of health care and improve its accessibility.

Prior to the Supreme Court releasing its decision on the law's future, Schilling released a detailed plan for true health care reform that can be found here on his website.  He is also seeking input on his continuing efforts to improve health care.  

Schilling spoke on the floor of the House of Representatives in support of H.R. 6079, which passed the House today in a bipartisan vote of 244-185.  Text of his remarks as prepared for delivery can be found below, and video can be found here.   

Mr. Speaker, like many in Illinois' 17th District, I'm disappointed that the Supreme Court decided to uphold the President's health care reform law.

The court ruled what we all knew from the beginning but the president wouldn't acknowledge -- the law's "individual mandate" is really as a tax on the American people and businesses that create jobs.

Under this law, health care costs remain too high.

Government bureaucrats remain between patients and their doctors.

Too many Americans remain unemployed, with national unemployment hovering above 8 percent for the last 41 straight months.

The law's medical device tax will continue to raise health care costs and limit the ability of facilities like Cook Medical in Canton, Illinois to expand and grow jobs.

And the law's employer mandate will continue to force employers to choose between paying a penalty, increasing the number of employees eligible for health care coverage, replacing full time staff with part-time employees, or laying folks off.

Mr. Speaker, now is not the time to raise taxes on working class families or employers.

We need to repeal this law and get to work on bipartisan health care reform that lowers costs and makes health care more convenient and more affordable.

I'm new to Congress, but I have a plan to address rising health care costs while ensuring those who need it have access to coverage.  I urge men and women from across America to visit schilling.house.gov to take a look.

I yield back the balance of my time.

# # #

To send Congressman Schilling an e-mail, click here

Wednesday, July 11, 2012

Grassley Objects to Two Treasury Nominees over IRS Whistleblower Office Concerns

WASHINGTON - As promised, Sen. Chuck Grassley is formally objecting to Senate consideration of two Treasury nominees until the Treasury and IRS provide responses to his latest letter on the IRS whistleblower office.  The nominees are Mark J. Mazur, to be an Assistant Secretary of the Treasury, and Matthew S. Rutherford to be an Assistant Secretary of the Treasury.

"The IRS could and should be doing a lot more to stop big-dollar tax cheats," Grassley said.  "Progress on the whistleblower office is critical for tax compliance."

Grassley wrote to Treasury Secretary Timothy Geithner and IRS Commissioner Douglas Shulman on June 21, the latest in a series of letters to explore the reasons for slow-going on whistleblower case processing and pay-outs.  While Treasury and IRS have provided information in meetings among staff, Grassley intends to object to Senate consideration of the nominees until he receives written responses to his June 21 letter.

Grassley's notice of intention to object from the Congressional Record follows here.  The text of his June 21 letter is available here.  A press release describing Grassley's history on the issue is available here.

INTENTION TO OBJECT -- (Senate - June 27, 2012)

[Page: S4668]

Mr. GRASSLEY. Mr. President, I intend to object to proceeding to the nominations of Mark J. Mazur, to be an Assistant Secretary of the Treasury and Matthew S. Rutherford to be an Assistant Secretary of the Treasury.

My support for the final confirmation of these nominees will depend on both Treasury and Internal Revenue Service responses to questions I have posed regarding their implementation of the tax whistleblower program. I rewrote the statute in 2006 to encourage whistleblowing on big-dollar tax cheats. However, nearly six years since those changes were enacted, Treasury has yet to issue much needed regulations and IRS has paid less than a half dozen awards under the new program.

I have sent several letters to Secretary Geithner and Commissioner Shulman to get to the bottom of this. Our staffs have been meeting, including most recently on June 26, 2012. I understand that Secretary Geithner and Commissioner Shulman intend to provide written responses to my questions. Until I receive those responses, I will object to proceeding with the nominations of Mr. Rutherford and Dr. Mazur.

-30-

Loans will help improve electrical infrastructure across Iowa

Washington, D.C. - Rep. Bruce Braley (IA-01) today applauded news that the Maquoketa Valley Rural Electric Cooperative and the Corn Belt Power Cooperative have been approved for over $59 million in guaranteed loans by the US Department of Agriculture.

The Maquoketa Valley Rural Electric Cooperative has been approved for a $3,250,000 loan that will be used to build and improve hundreds of miles of distribution lines across Iowa, including smart grid projects. The Corn Belt Power Cooperative has been approved for a $55,788,000 loan that will allow the cooperative to begin generation system improvements, as well as environmental improvement projects.

"These loan guarantees will modernize and improve the electric grid, creating jobs now and helping to spur economic growth across rural Iowa in the future," Braley said.  "Improving Iowa's infrastructure is a big job. Today's announcement will make this job possible, while at the same time creating opportunities for Iowans involved in upgrading the infrastructure across the state."

 

The guaranteed loans are backed by the Federal Financing Bank and approved by Rural Development, a division of the US Department of Agriculture.

# # #

Washington, D.C. - Congressman Dave Loebsack recently met with leaders of the Veterans Administration (VA) and told them the concerns he heard firsthand from Iowa's Veterans, military family members, and Veterans service providers.  Last week, Loebsack hosted a series of Veterans Forums across Iowa in order to give Veterans an opportunity to speak with the Congressman and seek assistance from his office.  In a meeting with Ms. Joan Mooney, Assistant Secretary for Congressional and Legislative Affairs and Mr. Danny Pummill, Executive Director, Compensation & Pension Service, Veterans Benefits Administration, Loebsack presented them with a letter to VA Secretary Eric Shinseki of the top concerns he heard from Iowa Veterans, including disability claims, VA health care and job training.  A copy of the letter can be found here.

"Last week, I met with Iowa Veterans, military family members, and Veterans service providers across eastern and southeastern Iowa," Loebsack wrote. "I strongly urge you to take my constituents' concerns into account as you work to improve VA services.  I look forward to continuing to work with you to ensure that every person who has served our nation in uniform receives the care, benefits, and respect they deserve."

This week, two pieces of legislation, which directly impact Veterans and their families, passed the House of Representatives with unanimous bipartisan support.  Loebsack was a strong supporter of both the Veterans COLA and Veterans Skills to Jobs Acts.  The Veterans COLA Act increases the amounts paid for veteran's disability compensation and to their survivors for dependency and indemnity compensation by the same amount as the Social Security cost of living adjustment.  The Veterans Skills to Jobs Act requires federal departments to help Veterans transition to the civilian workforce by taking the skills and experience they acquired through their military service into account when determining what training and certification requirements they must meet for federal licenses.

###
The Board of Directors of MidCoast Fine Arts (MFA) is proud to announce the appointment of Pamela Crouch as MFA's new Executive Director and Carolyn Krueger as General Manger. With their combined passion and enthusiasm for the Quad Cities art community, MidCoast is poised to grow even more as its visionary founder Dean Schroder transitions to retirement and a new chapter in MFA's history begins.

"We are thrilled to have both Pamela and Carolyn join our leadership team at MFA," said Amy Orr, President of MidCoast Fine Arts. "Each brings a lifetime of dedication to the local arts scene and we look forward to their leadership creating even greater opportunities to further MFA's mission of stimulating our community's cultural and economic vitality through the support of regional visual arts and artists. "We're excited to see Bucktown, MFA's galleries, and all of our events like Riverssance and Gallery HOP become even more integral to the  cultural landscape of the Quad Cities."

Pamela Crouch has a diverse background that includes everything from co-founding the Living Proof Exhibit  that honors breast cancer survivors to twenty years of experience in video and commercial production. Ms. Crouch has been an active Comedy Sportz performer, served on the Board of Directors for Playcrafters and The  District Theatre, and also served as the Commissioner for the City of Moline and an ambassador for the Chamber of Commerce. Ms. Crouch has earned B.A.'s in Speech Communication, English, Theatre, and Secondary Education at Augustana College.

Carolyn Krueger has long been one of MidCoast Fine Arts most ardent supporters beginning with her days as volunteer in high school and continuing throughout her adult life as she began to officially work for MFA in 2008. Ms. Krueger is owner of The ARTery in Rock Island, serves as an art instructor at the Bettendorf Family Museum, and continues to provide leadership for popular Midcoast programs including everything from "Gallery HOP!" and Riverssance to the daily management of MFA galleries and its volunteers throughout the Quad Cities. Ms. Krueger earned her Bachelor's Degree in Art with a double-minor in English and Religion Studies from Augustana College.

###

MidCoast Fine Arts stimulates the Quad Cities' cultural and economic vitality through the support of regional visual arts and artists. MidCoast serves our community with quality programming and events year. Visit us online at www.midcoast.org to find out more.

CAMP RIPLEY, MINN. (07/11/2012)(readMedia)-- Soldiers from Company A, 1st Battalion, 178th Infantry Regiment in Bartonville participated in squad live-fire exercises at the Infantry Platoon Battle Course as part of the eXportable Combat Training Capability (XCTC) program July 9 at Camp Ripley, Minn.

"This training is the culmination of what we have been doing over the last year," said 1st Lt. Chris K. Rodgers of Macomb, battalion liaison officer of Headquarters and Headquarters Company, 1st Battalion, 178th Infantry Regiment. "This is a validation lane for what we are going to be doing July 12. There the companies will run through platoon-size, live-fire exercises."

As with much Army-based training, a crawl, walk, run approach was used. Soldiers were briefed they were in a reconnaissance patrol, came upon enemy contact and had to destroy the enemy with their weapons, clearing the way for future movement.

"It's a real slow pace right now as we're learning," said Spc. Waylon S. Holland of Columbia, Mo., with Company A. "We spent a lot of time with rehearsals trying to better fit each other. I think this will be foundational and a crucial part to our XCTC experience."

During the rehearsals each squad moved tactically until engaged by pop-up targets and then responded with blank-round ammunition. Soon after, the squads repeated the movement with live rounds.

"This training is simulating (received) contact on a dismounted patrol," said Pfc. Collin A. Watts of Plainfield, with Company A. "We're practicing bounding techniques, which are basic movement techniques within a squad."

Although the movements are basic infantry tactics, the importance of knowing and employing them are vital to mission success and Soldier safety.

"Every infantryman will know this ... this is as basic as it gets," said Cpl. Paul A. Minder of Roanoke, team leader with Company A. "This is something they have to practice; they have to know."

The acknowledgement of risk and the seriousness of the exercise was expressed by others as well.

"It comes down to knowing who's on your right and left, knowing how to communicate and knowing how to give and follow orders," said Capt. Nick P. Camardo of Rockford, Company A commander. "It's essential they know how to take the proper steps and keep the weapon pointed down range and at the enemy. It's important for them to continue to train like this and I'm confident they will be good to go by the end of the day."

Company A made safety a priority and took the necessary precautions to ensure the Soldiers stayed safe throughout the exercise.

"There will be one range personnel, one medic, and two internal company safeties who will walk with every squad," said Rodgers.

After Camardo validates squads, the battalion commander will validate the platoons and then Company A can be validated and complete a large portion of their pre-mobilization tasks.

WICHITA STATE UNIVERSITY SPRING GRADS LIST

More than 1,500 students completed their degrees at Wichita State University in spring 2012.  These include Nishant Gorrepati of Bettendorf with a Graduate Certificate in Lean Systems and Jennifer A Weiman of Davenport with a Master of Music in Music-Opera Performance.

Undergraduate students who have attained a grade point average of 3.9 out of a possible 4.0 received the summa cum laude award; those with an average of 3.55 received the magna cum laude award; and those with an average of 3.25 received the cum laude.

CARTHAGE ANNOUNCES SPRING 2012 GRADUATES

Kenosha, Wis. - Carthage College celebrated commencement May 20, 2012.
Students from your local area receiving degrees include : (student(s) listed below)

Anne Boyler, Bettendorf. with a BA Cum Laude in Athletic Training; Pace Bennett of Moline with a BA in Accounting; and Joseph Finnemann, Rock Island, with a BA in Political Science

ABOUT CARTHAGE COLLEGE
Established in 1847, Carthage is a college of the liberal arts and sciences affiliated with the Evangelical Lutheran Church in America. The College enrolls 2,500 students and is situated on the Lake Michigan shore in Kenosha, Wis., midway between Chicago and Milwaukee. The Collegiate Learning Assessment has ranked Carthage among the top eight percent of colleges and universities nationwide for the academic gains of its students.

UNIV. OF MN TWIN CITIES SPRING DEAN'S LIST

Local student(s) earn recognition on University of Minnesota Twin Cities Dean's List for spring semester

MINNEAPOLIS / ST. PAUL (07/11/2012) - The University of Minnesota Twin Cities has named Cresston D Gackle of Bettendorf  to the spring semester Dean's List. Gackle is a student in the university's College of Liberal Arts.  Also named was Ann C. Motto of Davenport. Motto is a student in the university's  College of Liberal Arts.

New Law Ends General Assembly Tuition Waiver Program Plagued by Abuse

CHICAGO - July 11, 2012. Governor Pat Quinn today signed a new law abolishing the century-old political scholarship program in Illinois, one of his ethics reform goals since taking office. The Governor proposed to abolish this troubled program in 2009, 2010 and in 2011, and worked with the General Assembly to get it done this spring. Governor Quinn is committed to increasing college scholarships to students with merit who are in true financial need as well as restoring integrity to state government.

"There is no place for political scholarships in Illinois," Governor Quinn said. "I believe in the power of education, the importance of ethics and integrity, and the idea that you can get ahead in life with a little hard work. That's why today I enact this long-overdue reform and redouble our efforts to increase scholarships for deserving college students."

House Bill 3810, sponsored by Representative Fred Crespo (D-Hoffman Estates) and Senate President John Cullerton (D-Chicago), provides that members of the General Assembly may no longer award higher education scholarships after September 1, 2012. Recipients nominated for the 2012-2013 school year will still be awarded their scholarship. The legislation was passed following numerous news reports documenting abuse of scholarships and advocacy from the Governor, Lt. Governor and good government groups.

The General Assembly Scholarship program allowed legislators to annually award eligible persons from their district with scholarships waiving tuition fees at state universities. Legislators were found to have awarded scholarships to relatives, political insiders and to people living outside their district. During the 2010-2011 school year, the program cost 11 of 12 public state universities an aggregated $13.4 million in waived tuition fees.

"While legislative scholarships help a small number of students, the program's abuse comes at an incredibly high cost in terms of trust in government and absorbed tuition at colleges and universities," Lt. Governor Sheila Simon said. "By eliminating the legislative scholarship program, Illinois can take a meaningful step toward improving our ethical standards, while focusing our efforts on making college more affordable for all students."

"Abolishing the political scholarship program ends a needless waste of taxpayer dollars and helps to alleviate state universities from an unfair financial burden," said Rep. Crespo. "Signing this legislation into law stops these abuses in the General Assembly and restores faith in our government."

HB 3810 also creates a task force to review all tuition and fee waivers offered by state universities, ensuring that taxpayer dollars funding these public institutions are being spent appropriately and helping those of merit in financial need. The task force must report its findings on or before April 15, 2013.

"It is unfortunate that the legislative scholarship program was misused by legislators, taking away what for some students was their only way of attending college," said President Cullerton. "This new law will allow us to take a comprehensive look at all tuition waivers and how we can make higher education more accessible for those who need the most help."

The new law is supported by the Better Government Association and numerous reform advocates. The law is effective immediately.

##

Pages