Governor Branstad is sticking to his pledge to not propose a fuel tax hike this session. Instead, he's looking at alternative ways to sustain Iowa's road construction projects and staying  away from raising the state fuel tax. The Governor has laid out 13 cost efficiencies as way to save $50 million. The efficiencies include :

• better overall management,
• merging government functions,
• and reforming how our Road Use Tax Fund is administered.

House Republicans have pledged to not spend more than we take in. This demonstrates a commitment to commonsense budgeting and economic health. It appears budget targets will be out shortly, and while Iowa's budget OUR GOAL SHOULD BE TO seems to be in good condition, it looks like the Bush tax cuts will end. This will cause Iowans to pay more federal tax and HAVE A STATE AND FEDERAL less state tax. This in turn will reduce Iowa's revenue by approximately $175 million. Our goal should be to have a BUDGET THAT  CONTRIBUTES state and federal budget that contributes instead of takes INSTEAD OF TAKES AWAY FROM away from economic, family and community health.

The Senate approved $1.3 million additional dollars ECONOMIC, FAMILY AND for Iowa National Guard tuition aid for members attending COMMUNITY HEALTH. Iowa colleges and universities as thousands of troops have returned home from Iraq and Afghanistan. Before spending this money, Republicans want to be certain $1.3 million is the correct amount and that this new expense fits within the budget already approved by Republicans and Democrats and signed by the Governor. Iowa National Guard members can be confident that this  issue is a priority for House Republicans.

On Wednesday the Iowa House passed the first bill of the 2012 Legislative session, House File 2042, a bill that requires all administrative rules created by state agencies to be  accompanied by a jobs impact statement which sets out in detail the impact of the proposed rule on state agencies, local governments, and public and Iowa businesses. Additionally, it must determine whether a proposed rule would have a positive or negative impact on private sector jobs and employment.

If you have questions or comments please feel free to contact me via email at steven.olson@legis.state.ia.us

CEDAR RAPIDS, Iowa (DATE) - Teri Anson of Davenport, a Bachelor of Science - Nursing major, and Matthew Purl, Davenport, a Bachelor of Science - Biology major, have been named to the fall 2011 Dean's List at Mount Mercy University. Students with a semester grade point average of 3.60 or better and who are graded (letter grade, not pass/fail) for six or more semester hours are eligible for inclusion on the Dean's List.

Founded in 1928 by the Sisters of Mercy, Mount Mercy University offers students a personal, practical, and faith-inspired education that distinctly blends professional career preparation and liberal arts with a strong curriculum grounded in leadership and service.

In more than 80 years, Mount Mercy has grown in size and reputation, adapting to meet the changing educational needs of the Cedar Rapids community. Mount Mercy offers baccalaureate and graduate education to more than 1,800 traditional, transfer, adult and graduate students. Popular undergraduate majors include business, nursing, criminal justice, education, and social work. Graduate programs are offered in business, education, nursing and marriage and family therapy.

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If you're just beginning to think about your 2011 income tax return, you've got a late start - but it's still not too late to cash in on some savings.

"A lot of the deductions associated with the economic stimulus package will disappear in 2012, so if you want to take advantage of them, you've got only until Dec. 31," says Jessica James, CPA and author of Justice for None (www.AuthorJessicaJames.com), an insider look at IRS tactics in a tax fraud investigation and trial.

But, she says, there's still plenty of time for some other measures to ease your share of the tax burden. Now is also a good time to resolve to start earlier in 2012 to minimize that year's tax bill. Here are some tips for both 2011 and 2012 savings:

• Contribute to retirement accounts. If you haven't already put money into your traditional or ROTH IRA account for 2011, you've got until April 17 to do it. If you have a Keogh or SEP (Simplified Employee Pension Individual Retirement Arrangement for businesses), and you get a filing extension to Oct. 15, you've got until then to make your 2011 deposits. The maximum IRA contribution for 2011 is $5,000, or $6,000 if you're 50 or older by the end of the year. For self-employed people, the maximum for SEPs and Keoghs for 2011 is $49,000.

• Don't fear the home office deduction. In the past, many tax filers didn't claim a home office deduction because it was seen as an IRS red flag. But the requirements and forms have been clarified so people can do that properly - and not make mistakes that can lead to an audit. Also, the rules have been expanded so more people can claim the deduction. If you use a home office exclusively for business, even if you don't meet your clients there, you're eligible. For instance, a handyman who does his work other people's houses can claim the deduction if he does his paperwork at his home office. Another change is that, in the past, if you claimed 10 percent of your home as an office, that amount would not be included in the $250,000 tax-free profit from the home's sale that's allowed for an individual by the IRS. Be sure to make your claim reasonable, or it will get questioned; a $25,000 home office deduction for a business with $50,000 annual gross revenue is not reasonable.

• Maximize your Flexible Spending Account. The Health Care Act will limit the maximum you can put into these pre-tax medical expense accounts in 2013. So 2012 is the last year to use an FSA to pay for orthodontics and other large medical expenses using pre-tax earnings. A medical expense flexible spending account, or FSA, allows you to use before-tax earnings to pay for medical or health care expenses not covered by your health insurance. Assuming a 25 percent tax rate, you avoid $25 in taxes for every $100 you spend from your FSA.

• Need to sell an investment? Next year may be the time. The Tax Relief Act maintains the tax rate cap on capital gains and dividends at 15 percent through 2012. In 2013, the cap for capital gains will increase to 20 percent and for dividends, 39.6 percent. The Health Care Act also created a 3.8 percent Medicare tax on investment income, effective in 2013. Given those scheduled increases, plan to take advantage of the rates next year.

James is an author pseudonym used because she fears her novel may provoke IRS retaliation. It's a fictionalized account of her experience as a minor player swept up in an IRS probe that included anyone associated with the primary target, a corporation. She says that, though she was innocent of any wrongdoing, she was coerced into accepting a plea deal by the IRS, which was bent on amassing adjudications of guilt to justify the investigation's expense. She pled guilty to a count of falsifying a tax return and continues to work as a CPA.

About Jessica James

Jessica James is a CPA and the author of a novel, Justice for None, about her experiences as a minor target in a major federal tax fraud case.  After her ordeal, she decided to write about it as a warning to others who think they can take on the government and win.

GAHC is proud to host the talk: Easter Traditions in Germany presented by Kathlyn Hofmann on Sunday February 26, 2012 at 2pm at the German American Heritage Center, 712 W. 2nd St. Davenport, IA 52802. This presentation will acquaint you with German Easter traditions - some similar - some different from the way Easter is celebrated in the USA. 

Special highlight is a series of slides: "Osterbrunnen," elaborately decorated wells and fountains found in the Franconia area of northern Bavaria. Kathlyn lived in Germany for 27 years teaching German and ESL for the DoDEA School System. Since 2009, she has taught several beginning and intermediate German language classes at the GAHC. Free with admission.