Wallace: "The right to vote should be held sacrosanct."

 

Rock Island, IL?Jonathan Wallace, Candidate for State Representative in the Illinois 72nd District, will be joining Rural Township Trustee John Abbott and Rock Island County Board Member Bob Westpfahl in hosting a town hall meeting Wednesday, December 21, at 5:30pm at the Rural Township Building to discuss the recent elimination of polling places in Rock Island County. The public is invited to attend.

 

"Sadly, voter disenfranchisement has become politics as usual in Rock Island County. Democrats and Republicans alike have contacted our campaign, upset about this obvious attempt to affect election results. I believe the right to vote should be held sacrosanct, and I oppose any attempt by an elected official of either party to violate that important right. I stand with Bob Westpfahl and Trustee Abbott, and I look forward to meeting with voters in Rural Township to discuss this important issue on Wednesday."

 

Rural Township Trustee John Abbott agreed, arguing that this move by the Rock Island County Clerk's office will affect hundreds of voters.

 

"Earlier this week, the Rock Island County clerk's office reduced the number of voting centers in the county. Rural Township was among the 12 centers closed, forcing residents in the southeast part of Rock Island County to travel roughly 30 miles round trip to vote," Abbott said. "We want to invite the public to come share their concerns and join Bob Westpfahl by signing to get our polling place back."

 

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20-minute video

http://vaccineliberationarmy.com/paul-highlights-at-the-fox-news-iowa-gop-debate/

Nice video so that one may hear him clearly and then make your own educated decision and not based upon what a news service says about him.
Bettendorf, IA - The Horvath family will be hosting the Pleasant Valley Sparkles Christmas party this Sunday, December 18th at 4:15pm at their home.  Happy Joe Whitty will be stopping by to bring added holiday cheer to the event.  The Sparkles and their mentors will enjoy an evening of pizza, soda, Christmas crafts, a gift exchange and music. 

"These girls are truly amazing.  As members of the cheerleading squad they dedicate their time to practices and performing for football and basketball games as well as community events.  They give 110% all the time," says Tiffany Horvath, mother of Sparkle Mentor Taylor Horvath.  "This party is an opportunity to take time for themselves, relax and enjoy some well-earned time with their mentors and friends."

Additionally, the Sparkles would like to extend their thanks and gratitude to Happy Joe's, who graciously donated pizza for the party. 

The Sparkles are special-needs cheerleading squad started at Pleasant Valley High School in 2008.  Since then, the "Sparkle Effect" has gone nationwide, with approximately 52 inclusive teams in Iowa, Illinois, Wisconsin, Minnesota, Nebraska, Colorado, Indiana, Alabama, Tennessee, Washington, Florida, California, North Carolina, Texas, Pennsylvania, Missouri, Georgia, Ohio, Connecticut, New York, and even South Africa.

All media are welcome to join the party at 5374 Berkshire Street, Bettendorf on the 18th at 4:15pm. There will be lots of pizza and treats for them to enjoy as well! 

For more information, contact Tiffany Horvath at 907-223-5430.

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***Click here to watch Senator Grassley's floor statement.***

Prepared Floor Statement of Senator Chuck Grassley

Ranking Member, Senate Committee on the Judiciary

Hall v. United States and Chapter 12 of the Bankruptcy Code

Friday, December 16, 2012

Mr. President, I'd like to take a few minutes to discuss a case that was argued a few weeks ago before the Supreme Court, Hall v. United States.  This case involves a specific provision I authored, which is contained in 2005 Bankruptcy Reform law.  Throughout the litigation in this case, my statements supporting the provision were discussed at length.  I want to take a few minutes and walk through the history and intent of this provision, so people hear it straight from the author's mouth.

At its core, Hall v. United States is about statutory interpretation.  The statute at issue is 11 U.S.C. section 1222(a)(2)(A), which was a farm bankruptcy provision added to the Bankruptcy Code in 2005.  Before I get into a discussion about the case, let me explain what this particular provision does and why it was needed.

Congress enacted Chapter 12 of the Bankruptcy Code in 1986, which was subsequently made permanent in 2005.  Chapter 12 allows family farmers to use the bankruptcy process to reorganize their finances and operations.  It's a proven success as a leverage tool for farmers and their lenders.  It helps the farmer and the banker sit down and work out alternatives for debt repayment.  Not long after it became law in 1986, we began to hear about what worked and what didn't work for farmers who were reorganizing in bankruptcy.

One problem we learned about arose when a debtor farmer needed to sell assets in order to generate cash for reorganization.  A farmer may need to sell portions of the farm to raise cash to fund a plan and pay off his creditors.  However, in this situation we're usually dealing with land that's been in a family's hands for a long time.  This means that the cost basis is usually very low.  So, once a farmer filed bankruptcy and then tried to sell a portion or all of the land, he would be hit with a substantial capital gains tax.

This created problems because, as originally drafted, Chapter 12 required full payment of all priority claims under Section 507 of the Bankruptcy Code.  The only way to avoid this requirement was if the holder of the claim agreed that its claim could be treated differently.  Thus, when a farmer sold his land, which resulted in large capital gains, the IRS would have a priority claim against the bankruptcy estate.

Now, let me take a moment to explain the concept of a bankruptcy estate, which may be a bit confusing.  When an individual or a corporation files for bankruptcy, an estate is created.  The estate consists of property that is liquidated for the purpose of paying creditors.  So, in the case of farmers filing a bankruptcy petition under Chapter 12, the farm assets are property of the estate.  And according to Section 541(a)(6) of the Bankruptcy Code, the proceeds from the sales of those assets are also property of the estate.

So, the situation farmers faced was where the IRS held a large priority claim against the bankruptcy estate.  Let's talk a minute about claims against the estate, because this helps to understand how we got to where we are today.  In the situation I'm discussing, we're dealing with a claim that is based on taxes owed.   The Bankruptcy Code says that taxes incurred by the estate are administrative expenses.  An administrative expense essentially receives top priority when determining who gets paid what.

Thus, the effect this had was that the IRS, with its priority claim, could object to any reorganization plan that didn't provide for full payment of its tax claim.  The IRS essentially held veto authority over the farmer's plan confirmation.  In some instances, then, a farmer who sought to sell a portion of his farm to reorganize, pay creditors and become profitable again was prohibited completely from doing so.

After learning of this problem, I started working on a way to fix it.  Simply put, I wanted to make sure that family farmers in a Chapter 12 case could, in fact, sell portions of their farms to effectively reorganize, without the capital gains taxes jeopardizing the reorganization.  The very purpose of Chapter 12 and bankruptcy in general is to allow for a fresh start.  Unfortunately, this wasn't happening.

In 1999 I introduced the "Safeguarding America's Farms Entering the Year 2000 Act."  This bill, among other things, sought to fix the capital gains tax issue.  When I introduced this bill, I said that it would "help[] farmers to reorganize by keeping tax collectors at bay."  I also explained that:

"Under current law, farmers often face a crushing tax liability if they need to sell livestock or land in order to reorganize their business affairs. . . High taxes have caused farmers to lose their farms.  Under the Bankruptcy Code, the IRS must be paid in full for any tax liabilities generated during a bankruptcy reorganization.  If the farmer can't pay the IRS in full, then he can't keep his farm.  This isn't sound policy.  Why should the IRS be allowed to veto a farmer's reorganization plan?"

The language I proposed ultimately was enacted in the 2005 Bankruptcy Reform law.    Since the Bankruptcy Code, courts and the IRS treated the tax liability as an administrative expense, the new provision created a very narrow exception.  Basically, only in a Chapter 12 case, if a farmer sold farm land that resulted in a capitals gain liability, then the IRS's claim would not receive priority status.

Instead, the government would have an unsecured claim, which means they may get paid something, but not necessarily the entire amount.  Also, the IRS would no longer be able to veto a plan's confirmation.  Thus, the farmer debtor would be allowed to try and reorganize.

Now, from a bankruptcy point of view, this approach makes complete sense.  As I've discussed already, filing a petition creates a bankruptcy estate.  The bankruptcy estate then sells the land, post-petition, and that results in capital gains that are owed to the IRS.  These taxes, incurred by the estate post-petition, are administrative expenses, which receive priority status.  So, my language, enacted into law in 2005, stripped the priority claims owed to the government, in this very specific instance, and made them general unsecured claims.

However, since passage of this provision, the IRS has made an about face.  The government now argues, despite the way it treated this situation for all these years, that the tax liability created is the responsibility of the individual and not the bankruptcy estate.  Yet, the entire reason we created this new provision was because of the way the IRS treated the tax liability.

The IRS's new position has been argued in federal court and has received mixed results.  So now  there's a dispute whether my provision accomplishes what it was designed to do.  A 2009 Eighth Circuit case, Knudsen v. Internal Revenue Service, held the provision applies to the post-petition sale of farm assets, which is what we're discussing here.  Specifically, the Eighth Circuit rejected the IRS's position that the Internal Revenue Code does not recognize a separate taxable entity being created when a debtor files a Chapter 12 petition.

Put another way, the IRS is claiming the individual debtor is responsible for the tax liability that arises out of the bankruptcy estate's actions.    The Eighth Circuit disagreed and said there's now an exception preventing the IRS from having a priority claim for the capital gains.

But in a Ninth Circuit case, the court there held that there was no exception for post-petition capital gains.  In Hall v. United States, now before the Supreme Court, the Ninth Circuit said the Halls were responsible for the capital gains taxes from selling part of their farm during bankruptcy. This holding means that my provision didn't create a narrow exception, even though that's what was intended.

Unfortunately, the IRS, under the Obama administration, is taking a position today that is anti-farmer and the exact opposite of what it said six years ago.

This about-face came only after we made the change in the law, and it became clear that in very narrow circumstances the IRS would lose its priority position.  I respect the IRS's interest in pursuing tax dollars, but it exhibited a lot of chutzpah in taking this position. Our policy reasons for this new exception were simple.  The farmers didn't have enough money to pay everyone.  We decided that it would be better to let them sell some assets, which would generate cash and help them to reorganize and pay their creditors.  In making this decision, we realized that someone would have to make a sacrifice.  We decided to give the farmers a break from government taxes in a very narrow set of circumstances.  Now, though, the government is trying to figure out a way to jump back ahead of other creditors and get more money.

And these creditors that the IRS is trying to break in front of are small businesses, suppliers and small, local banks that extend credit and supplies to farmers.  This is not what we expected would happen when we passed the 2005 Bankruptcy law.

This is an important issue and an important case that the Supreme Court will decide in the coming months.  The Supreme Court will decide whether this provision accomplishes my goal, which I've stated.  I look forward to seeing how the case is resolved.  Rest assured that I'll work to ensure that this policy of protecting family farmers is followed as that was our clear intent in having this law enacted.  Chapter 12 has proven successful as a leverage tool for farmers and their lenders.  It helps the farmer and the banker sit down and work out alternatives for debt repayment.

Should the Court rule that the Internal Revenue Code is inconsistent with the Bankruptcy Code, and rule against my intent as the author, I will work to remedy this inconsistency.

 

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CHICAGO - December 16, 2011. Governor Pat Quinn today took action on the following bills:

 

Bill No.: HB 384

An Act Concerning: State Government

Authorizes the comptroller to enter into intergovernmental agreements with local units of

government that allow the state to withhold payment from individuals for amounts that are owed to local governments.

Action: Signed                        

Effective Date:  Immediately

 

Bill No.: HB 507

An Act Concerning: Revenue

Requires the towns of Dixon and Lansing to complete their redevelopment projects by the end of 2022 and 2023, respectively.

Action: Signed                        

Effective Date: Immediately

 

Bill No.: SB 50

An Act Concerning: Liquor

Allows for specified locations in the city of Chicago to apply for permits allowing the sale of alcoholic beverages.

Action: Signed

Effective Date: Immediately

 

Bill No.: SB 165

An Act Concerning: Local Government

Extends the city of Moline's TIF district time, from Dec. 31, 2021, to Dec. 31, 2033, in order to complete the city's redevelopment project.

Action: Signed

Effective Date: Immediately

 

Bill No.: SB 397

An Act Concerning: Revenue

Restructures Illinois' tax code for exchanges like the Chicago Mercantile Exchange, continues investments in Sears Holdings Corporation, and extends the Research and Development tax credit to spur business innovation.

Action: Signed

Effective Date: Immediately

 

Bill No.: SB 1335

An Act Concerning: Revenue

Allows for the deadline for an application for judgment and order of sales within Cook County to remain July 1 until 2014.

Action: Signed

Effective Date: Immediately

 

Bill No.: SB 2502

An Act Concerning: Public Aid

Limits a rate increase from July 2000 for mammography Medicaid providers to those participating in a quality improvement program approved by HFS, on or after Jan. 1. Deletes a bonus payment provision for providers meeting the quality standards for screening and diagnosis established by an expert panel.

Action: Signed

Effective Date: Jan. 1

 

 

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Oleson represents the second-most populous county in Iowa and has many Republican, civic affiliations
ANKENY, Iowa - The Ron Paul 2012 Presidential campaign announced today that Linn County Supervisor Brent Oleson has endorsed Ron Paul for the presidency.

Attracted to Congressman Paul's commitment, character, and courage Mr. Oleson said, "Ron Paul has the principals and conviction necessary to solve our national budget woes.  With our national debt over $14 trillion, the spending by Washington D.C. continues to mortgage the fruits of our labor to fund programs we don't need and can't afford.  Ron Paul puts people before politics and will work to ensure that our children and grandchildren inherit a strong economy and prosperous nation, not one saddled by debt."

Brent Oleson is an attorney residing in Marion, Iowa with his two children.  For many years, he has been an active participant in Iowa politics - serving two terms on the Republican Party of Iowa's State Central Committee, six terms on the Linn County Central Committee, and as a Republican Party of Iowa Platform Committee Member.

Representing Iowa's second-most populous county of 211,000 residents, Oleson was elected to his district with over 58 percent of the vote in the heavily Democratic county.  Mr. Oleson also serves on the boards of the Linn County Republican Party, Eagles Club, Linn County Solid Waste Agency, Marion Economic Development Corporation, Cedar Valley Humane Society, and Trees Forever.

"We're pleased to count Brent Oleson's endorsement among the many ones that will help our campaign achieve a strong top-three showing in January," Ron Paul 2012 Iowa Chairman Drew Ivers said of the upcoming caucus.
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Urges bipartisan cooperation on extending middle class tax cut 

 

Washington, DC - Rep. Bruce Braley (IA-01) released the following statement after supporting an agreement on a bill that funds US government operations through 2012:

"It's disappointing that Congress failed to do its job for months and didn't pass a bill to keep the government operating until today.  I'm relieved that there won't be a government shutdown for the holidays.

 

"The political jockeying over extending the middle class payroll tax cut needs to stop.  Extending the middle class tax cut is simply the right thing to do.  This tax cut has everything to do with strengthening the economy; it shouldn't have anything to do with Republicans or Democrats scoring political points.  I urge Congressional leaders to put their differences aside and extend these vital tax cuts for Iowa families."

 

Extending the middle class Social Security payroll tax holiday for an additional year would mean an average Iowa family making $50,000 per year would save $1,000 on their taxes.

 

# # #

New Research Facility will Support Innovation and Create 200 High-tech Illinois Jobs

BATAVIA - December 16, 2011. Officials from the administration of Governor Pat Quinn today announced $20 million in Illinois Jobs Now! capital funding for the design and construction of a new accelerator research facility at Fermilab. Ground was broken today on the new facility, which will be part of Fermilab's Illinois Accelerator Research Center (IARC) complex. The complex will be a state-of-the-art facility for research, development and industrialization of particle accelerator technology, creating 200 high-tech jobs.

"In Illinois we understand the importance of investing in cutting-edge technologies, which not only boosts our economy, but also secures our role as a major competitor in the global marketplace," Governor Quinn said. "The best minds in the world are right here, and today we are investing in our future by ensuring that the latest groundbreaking particle research activities will continue to come from Illinois."

The IARC project is being funded jointly by the state of Illinois and the U.S. Department of Energy, Office of Science (DOE). Administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), $20 million in Illinois Jobs Now! capital funding was awarded to Fermilab for the design and construction of a new building that will form part of the IARC complex. The DOE is also providing $13 million to Fermilab to refurbish an existing heavy industrial building that will be incorporated into the complex, adding 36,000 square feet of specialized work space.

"The IARC facility will help fuel innovation by developing advanced technologies, strengthening ties with industry and training the scientists of tomorrow," said William Brinkman, the director of the DOE's Office of Science. "The Department of Energy welcomes the opportunity to partner with the state of Illinois and looks forward to seeing IARC come to fruition."

On behalf of Governor Quinn, DCEO Director Warren Ribley joined DOE and Fermilab officials today at the IARC groundbreaking ceremony to announce funding from the Governor's capital program for the project.

"The IARC facility positions Illinois at the forefront of the world-wide effort to develop cutting-edge accelerator technologies," said Director Ribley. "It also reinforces the Quinn Administration's commitment to supporting innovation in Illinois, as well as the creation of 200 high-tech jobs in addition to construction jobs."

The IARC is expected to create 200 new high-tech jobs and will be located in the heart of the industrial area of the Fermilab campus in Batavia. The facility will provide 42,000 square feet of technical, office and educational space for scientists and engineers from Fermilab, DOE's Argonne National Laboratory, local universities and industrial partners. The IARC complex will help develop private industry partnerships for the commercial and industrial application of accelerator technology for energy and the environment, medicine, industry, national security and discovery science. The IARC will also offer unique advanced educational opportunities to a new generation of Illinois engineers and scientists and will help attract top scientists from around the world.

"A focused effort and strengthened partnerships between government and industry is required for the United States to remain competitive in accelerator science and technology," said Fermilab Director Pier Oddone. "IARC will greatly enhance accelerator research and innovation at Fermilab and strengthen our capability to host new international projects. We will also broaden our economic impact on Illinois by working with industry and universities on advanced R&D with many commercial and scientific applications."

Today's particle accelerators address many of the challenges confronting the U.S. in the areas of sustainable energy, a cleaner environment, economic security, health care and national defense. The accelerators of tomorrow have the potential to make still greater contributions. The IARC will be utilized as incubator space for emerging accelerator technologies, providing a central point for cutting-edge accelerator research and industrialization.

"This is an exciting project for the state. It links our research capability with businesses in Illinois and will help boost innovation while bringing much needed jobs to Illinoisans," said State Rep. Mike Fortner (R-West Chicago).

As part of his continued commitment to boosting innovation in Illinois, Governor Quinn launched the Illinois Innovation Council (www.IllinoisInnovation.com) in February to ensure the state remains on the cutting-edge in the global economy. The council is actively working to promote the role and importance of innovation in economic development and quality of life; convene and partner with academic, business and governments to evaluate and recommend initiatives to improve support for innovation, and align public and private resources.

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United Soybean Board Leaders Committed to Moving U.S. Soy Industry Forward in 2012

ST. LOUIS (December 16, 2011) - The United Soybean Board (USB) and soybean checkoff prepare to head into the new year with a new farmer-led executive committee, electing Jim Stillman, a checkoff farmer-leader from Emmetsburg, Iowa, as vice chair. Stillman, along with the 68 other volunteer farmer-directors, will focus on implementing specific, new strategic objectives outlined in the checkoff's Long-Range Strategic Plan.

They include directing soybean checkoff dollars to improve U.S. soybean meal and oil, helping ensure U.S. soybean farmers have the freedom and adequate transportation infrastructure to operate and meeting the needs customers of U.S. soy here at home and abroad. In addition, USB made supporting the biggest domestic user of soy - U.S. poultry, livestock and fish farmers - its top priority.

"These issues are critical to the U.S. soy industry," Stillman said after his election. "I'm honored to help lead the soybean checkoff as it focuses on these issues and others that help maximize profit opportunities for all U.S. soybean farmers."

Stillman has been a checkoff farmer-leader since 2005, most recently serving two terms as USB treasurer.

Other soybean farmer-leaders elected to the 2012 USB executive committee include :

•             Vanessa Kummer, Colfax, N.D., Chair

•             Jim Call, Madison, Minn., Secretary

•             Bob Haselwood, Berryton, Kan., Treasurer

•             Lewis Bainbridge, Ethan, S.D., Domestic Marketing Chair

•             Russ Carpenter, Trumansburg, N.Y., New Uses Chair

•             Sharon Covert, Tiskilwa, Ill., International Marketing Chair

•             Jim Schriver, Montpelier, Ind., Production Chair

•             Jimmy Sneed, Hernando, Miss., Communications Chair

•             Rick Stern, Cream Ridge, N.J, Audit & Evaluation Chair

USB is made up of 69 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. Checkoff funds are invested in the areas of animal utilization, human utilization, industrial utilization, industry relations, market access and supply. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA's Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff.

For more information on the United Soybean Board, visit us at www.UnitedSoybean.org

Visit us on Facebook: www.facebook.com/UnitedSoybeanBoard

Follow us on Twitter: www.twitter.com/unitedsoy

View our YouTube channel: www.youtube.com/user/UnitedSoybeanBoard

 

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During his weekly video address, Senator Chuck Grassley discusses revelations made during the Senate Agriculture Committee hearing regarding the MF Global collapse in which up to $1.2 billion in customer funds was lost - including money from Iowa farmers and brokers.

Click here for audio.

Here is the text of the address:

This week's oversight hearing in the Senate Agriculture Committee on the MF Global collapse yielded some revelations on what happened and who knew what when.

An executive of a financial exchange that oversees MF Global testified that the former head of the firm may have known the firm was using customer funds to make a $175 million loan to a European affiliate.  This statement from the head of the CME Group struck another senator on the Agriculture Committee as a "bomb."

It strikes me as a bombshell, too, because just minutes before, Mr. Jon Corzine continued to express his lack of understanding of how MF Global lost up to $1.2 billion in customer funds - including money from Iowa farmers and brokers.

The revelation wasn't in any prepared testimony.  It came in response to senators' questions.

It goes to show that congressional oversight yields results.

Those responsible can and should be brought to account, whether it's firms playing fast and loose with customer money in violation of the law or the regulators who are supposed to stop malfeasance.

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