DES MOINES, IA (02/10/2011)(readMedia)-- State Treasurer Michael L. Fitzgerald is providing free pencils to Kindergarten teachers across Iowa through the Prepare for Basics Program. Fitzgerald understands that Kindergarten Round-Up is an integral part for both children and parents which is why he is providing the materials free of charge. "Our schools have the right idea when it comes to putting the children and parents at ease," Fitzgerald said. "They know that inviting families to check out their school six months before the school year begins will help kindergarteners prepare for their big transition. We offer the pencils as a small gesture of support for our schools." In addition to the pencils, this free program will provide information about College Savings Iowa, the state-sponsored 529 plan created to help Iowa families save for future higher education expenses.

College Savings Iowa lets anyone - parents, grandparents, friends and relatives - invest for college. Iowa taxpayers can deduct up to $2,865 in contributions per beneficiary account from their adjusted gross income in 2011.* Investors do not need to be a state resident and can withdraw their investment tax-free to pay for qualified higher education expenses including tuition, books, supplies and room and board at any eligible college, university, community college or accredited technical training school in the United States or abroad.** For more information about College Savings Iowa, visit www.collegesavingsiowa.com or call 1-888-672-9116.

Elementary principals interested in taking part in the Prepare for the Basics program are recommended to register on-line by visiting www.treasurer.state.ia.us and clicking on the financial literacy tab. To guarantee timely arrival, materials should be requested at least two weeks in advance. They will be delivered directly to the participating schools. Supplies are limited, so early registration is advised.

*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.

** Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax on the earnings, as well as state income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

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Sen. Chuck Grassley of Iowa today made the following comment on a report released by the Treasury Inspector General for Tax Administration, "Reduction Targets and Strategies Have Not Been Established to Reduce the Billions of Dollars in Improper Earned Income Tax Credit Payments Each Year."  The report says the IRS continues to report that 23 percent to 28 percent of EITC payments are issued improperly each year. In Fiscal Year 2009, this equated to $11 billion to $13 billion in EITC improper payments.

"This is an outrageously high improper payment rate.  It's higher than Medicare's improper payment rate.  The taxpayers can't sustain a failure rate of one-fourth and on the way to one-third.  For more than eight years, the IRS hasn't made a dent in this problem.  It's more than enough time to figure out a way to fix it.  The report says the IRS doesn't have the resources to go after all of the improper payments in this program. This is a good indication of how the IRS is poorly equipped to handle the huge new responsibilities of health care reform. If the IRS can't handle its existing responsibilities, it won't be able to handle its new responsibilities under health care reform.  Maybe if the White House focused more on what's already owed, it wouldn't need to propose tax increases, such as the one on employers to pay for unemployment benefits just disclosed this week."

Washington, DC - Today, Congressman Bruce Braley (IA-01) sent a letter to President Barack Obama and Speaker John Boehner asking them to provide a plan to avoid raising the debt ceiling. Secretary of the Treasury Tim Geithner has stated that the U.S. will reach its debt limit sometime in April or May - and Speaker Boehner has indicated that the House will take a vote on raising the debt limit soon.

"Our national debt is around 14 trillion dollars and growing. That's unacceptable," said Braley. "Voters across the country spoke loud and clear last November - they want us to get spending under control. The President and Speaker are giving Congress and the American people a false choice - vote to raise the debt ceiling or vote to shut down the government. I know there's a better way. We must put forward a common sense, middle-of-the-road plan to bring down our debt and avoid having to make this false choice in April or May. That's why I hope the President and Speaker Boehner will propose a plan to avoid this scenario.

"I know, and the American people know, that we will have to make tough choices and tough cuts. I look forward to this process and to working with my colleagues on both sides of the aisle to get our spending under control. But I cannot accept a situation where we kick the can further down the road. If we don't stop borrowing and spending now, when will we?

"In December, I voted against the $850 billion package of Bush tax bonuses for the rich because I know those tax bonuses are such a significant part of our national deficit. Both the President and Speaker Boehner supported them. Now, I want to hear their plan for cutting government spending in a way that doesn't force us to raise the debt ceiling once again.".

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Wednesday, February 9, 2011

Senators Ask for Next Steps on Agriculture Competition

WASHINGTON - Senator Chuck Grassley, along with Senator Patrick Leahy, today asked for the next steps planned for agricultural competition issues by the Departments of Justice and Agriculture.  The two agencies held joint workshops over the last year to learn about the key competition issues facing the agriculture industry.   Grassley and Leahy are respectively Ranking Member and Chairman of the Senate Judiciary Committee, which has jurisdiction over federal antitrust policy.  Both senators are also members of the Senate Agriculture Committee which has jurisdiction over the Packers and Stockyards Administration.

"The agriculture industry has consolidated to the point where family farmers, independent producers and other smaller market participants do not have equal access to fair and competitive markets.  Increased concentration in agriculture will lead to fewer product choices and higher product prices for the American consumer," Grassley said.  "The workshops offered a chance for people involved in the ag industry to voice their concerns and provide comment.  It was a strong signal that the two agencies were communicating about this important issue.  Now, it's time to take another step forward.  I look forward to hearing what the Justice Department and Agriculture Department have in mind.

Grassley is a strong advocate for increased competition in agriculture and has sought to ensure healthy competition in the agriculture industry for all market participants by taking legislative action and conducting aggressive oversight.  The 2008 farm bill included positive steps in market transparency and increased competition, based on legislation sponsored by Grassley, but he has reiterated the need for additional action.

Here is a copy of the text of the letter sent to Attorney General Eric Holder and Secretary of Agriculture Tom Vilsack.

February 9, 2011

The Honorable Eric Holder                 The Honorable Tom Vilsack

Attorney General                                Secretary

U.S. Department of Justice                U.S. Department of Agriculture

950 Pennsylvania Avenue NW          1400 Independence Avenue SW

Washington, DC 20530                      Washington, DC 20250

Dear Attorney General Holder and Secretary Vilsack,

We are writing in regard to the U.S. Department of Justice (DOJ) and U.S. Department of Agriculture (USDA) competition workshops which were held throughout 2010.  From March through December 2010, workshops were held in Iowa, Alabama, Wisconsin, Colorado, and the District of Columbia covering seed, poultry, dairy, livestock, and price margins.  In addition, written and public comments were also accepted on these topics.

These workshops brought many of the key players on agricultural competition together and we thank you for this proactive step in beginning a dialogue on vertical integration, buyer power, market transparency, concentration, and retail prices. Producers, economists, academics, and government and elected officials were all able to participate in this process.

With the conclusion of the last workshop on December 8, 2010, we would appreciate an update as to what the DOJ and USDA plans for its next steps.  As Chairman and Ranking Member of the Committee on Judiciary, please provide to us an outline of any plans or further action items that DOJ and USDA intend to take in this area.  While making the workshop transcripts and comments available to the public has been helpful, we would also like to know what your Departments have learned from this process and whether any additional follow up is warranted.

Thank you for your prompt attention to this request.

Sincerely,

Patrick Leahy                 Chuck Grassley

Chairman                      Ranking Member