WASHINGTON - Sen. Chuck Grassley of Iowa today urged President Obama to adopt a definition of tax reform that would make U.S. employers more competitive worldwide and encourage job creation in the United States rather than impose scattershot tax increases that do not constitute reform and do not promote economic growth.  

"Tax reform in a global economy is a serious task," Grassley wrote in a letter to the President.  "There are complex issues to be considered.  These include a comparison of the rates and incentives provided by the countries we are competing with for jobs.  A serious task needs serious leadership.  Demagoguery of tax incentives may provide good political sport but it does not provide the strong leadership needed for the serious task of reforming the tax code to secure America's competitiveness in the global economy."  

Grassley noted that the President and others define "tax reform" as closing "tax loopholes" and the President said tax reform should "ask those who can afford it to pay their fair share."  Grassley said tax reform in the sense of creating jobs involves simplification and making U.S. businesses more competitive with their counterparts worldwide.  

Grassley urged the President to "... take responsibility for the tone and tenor of the tax reform debate you are setting."  Grassley wrote, "With unemployment and growth rates where they are, the country cannot afford the kind of 'tax reform' you are promoting."  

Grassley is former chairman and ranking member and currently a senior member of the Finance Committee, which has exclusive Senate jurisdiction over taxes and has been holding hearings on tax reform.  

The text of Grassley's letter to the President is available here.  

 

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Announces Support for Northwest Illinois Company to Expand, Creating and Retaining Nearly 100 Jobs

CHICAGO - August 8, 2011. Governor Pat Quinn today signed legislation to expand the Quad Cities Regional Economic Development Authority, which will encourage greater economic development in Northwest Illinois. The Governor's signature comes as Tennant Truck Lines, Inc. announces an expansion that will create and retain close to 100 jobs. The new law reflects Governor Quinn's aggressive business agenda that is creating jobs in every region of the state and growing the economy.

"Powerful economic tools like this new law demonstrate our commitment to creating jobs and making Illinois even more competitive in the global economy," said Governor Quinn. "This legislation helps local governments in Northwest Illinois to attract and develop businesses in the region, growing the economy."

Senate Bill 1755, sponsored by Sen. Mike Jacobs (D-Moline) and Rep. Patrick Verschoore (D-Rock Island), amends the Quad Cities Regional Economic Development Authority Act by expanding the geographic area of the authority. The authority currently includes Rock Island, Henry, Knox and Mercer counties. The new area will also include Jo Daviess, Carroll, Whiteside, Stephenson and Lee counties. Senate Bill 1755 also expands the governing board of the authority from 11 to 16 by adding a member from each of the five additional counties. New members will be appointed by each of their respective county board chairs.

Illinois law gives regional economic development authorities power to issue bonds on behalf of a company to help facilitate economic development. The Quad Cities Regional Economic Development Authority focuses its development in three main project areas: manufacturing, not-for-profit and senior housing.

Governor Quinn's signature comes as Tennant Truck Lines, Inc., a family-owned and operated transportation and logistics company located in the Quad Cities, plans to invest $3 million to merge their headquarters and logistics operations into one facility in Colona, creating 30 new jobs and retaining 65 full-time jobs. The new site will allow the company to keep existing functions in Illinois and provide room for expansion of both headquarter and logistics functions. The state will provide a more than $1 million business investment package in the form of job creation tax credits spread out over 10 years and an employer training grant to leverage the private investment.

Governor Quinn's aggressive business agenda is creating jobs, growing the economy and encouraging economic development in every region of the state. In June, Governor Quinn awarded more than $10.4 million through the "IKE" Disaster Recovery Program to communities throughout Northwest Illinois to assist with water and sewer improvements and other critical public infrastructure needs. Through the state's economic development agency, Illinois has a wide range of programs and services available to help businesses of all sizes remain competitive.

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New Law Helps Small Businesses Participate in State Projects

TINLEY PARK - August 5, 2011. Governor Pat Quinn today signed legislation to boost small businesses owned by Illinois Veterans. Under the new law, the state will set an annual goal of 3 percent of every state contract to be set aside for businesses owned by Veterans and service-disabled Veterans.

"Veterans who have taken the initiative to start small businesses and help create jobs should be supported when competing for government contracts," Governor Quinn said. "We must honor the men and women who have honorably served our country. This important law further recognizes the commitment made by those Veterans who have returned home and are working to support their communities."

Sponsored by Sen. Maggie Crotty (D-Oak Forest) and Rep. Linda Chapa LaVia (D-Aurora), Senate Bill 1270 amends the Illinois procurement code to help Veteran-owned small businesses better compete in the state bidding process. To be eligible, the businesses must be based in Illinois and be at least 51 percent owned by Veterans or service-disabled Veterans

The new law sets an annual goal of 3 percent of every state contract to go to service-disabled Veteran-owned small businesses (SDVOSB) and Veteran-owned small businesses (VOSB) with annual gross sales of $75 million or less. Larger Veteran-owned businesses can apply for an exemption if they can demonstrate that a significant number of Veteran-owned suppliers or subcontractors would benefit.

Senate Bill 1270 passed the General Assembly unanimously and was supported by the International Brotherhood of Teamsters, Veterans of Foreign Wars (VFW), JAR Consulting, American Institute of Architects - Illinois Council, American Council of Engineering Companies of Illinois, American Institute of Architects and the Illinois Department of Professional Engineers.

The new law takes effect immediately.

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(Friday, August 5, 2011) Lujack Chevy is proud to announce that they will be the first Quad City Chevy dealer to install an Electric Vehicle (EV) Charging Station. The installation will take place in the Lujack Chevy service department on Thursday, August 11, at 11:00 a.m. by a NECA member qualified local installer. A light lunch will be served

The SPX EL-50580 Voltec charging station, a Level 2 charging station, is an element in an infrastructure that supplies electric energy for the recharging of electric vehicles, plug-in hybrid (electric-gasoline vehicles) or semi-static and mobile electrical units such as exhibition stands. An average charge takes 4 hours with a Level 2 EV charger. The user finds charging an electric vehicle as simple as connecting a normal electrical appliance.

The Chevy Volt offers an initial electric range of 35 miles. Along with its onboard gas generator, the Volt will average a range of 375 miles. For an average of $1.50 a day most drivers can have a gas-free and tailpipe and emissions-free commute. The Chevy Volt was named Motor Trend Magazine's 2011 Car of the Year.

Lujack Chevy, the Iowa Quad Cities' only Chevy dealer, is currently taking orders for the new Chevy Volt. Early purchasers will be able to take advantage of the Federal Government's $7500 rebate.

For more information call Gwen Tombergs, Lujack's Marketing Director, at 563-343-2058.

"After all, we haven't inherited this planet from our parents?we're borrowing it from our children." Chevrolet

Washington, DC - Today, Congressman Bruce Braley (IA-01) released thefollowing statement after the vote on the debt ceiling:

"The simple truth is, today's vote is a symbol of everything that's wrong in Washington: partisan brinksmanship, broken promises, backroom deal making, and kicking the can down the road. Enough is enough. I've been demanding a balanced approach of shared sacrifice from both the President and the Speaker since the beginning of the year. I've listened to my constituents at multiple town halls. Iowans know that when times are tough, families don't just tighten their belts, they also take on extra jobs to increase their income. Today's vote squarely places the burden of deficit reduction on middle class families, while demanding nothing of millionaires, billionaires and corporations making record profits. My constituents don't agree with that, and neither can I."

In recent months, Rep. Braley voted to cut nearly half a trillion dollars from the current budget:

He called for an immediate withdrawal of our troops in Iraq and Afghanistan, which would save over $1 trillion dollars.

He opposed the invasion of Libya, which has cost taxpayers over $700 million dollars in our 5 months of involvement.

He fought for legislation to end waste, fraud and abuse in Medicare, which would save up to $700 billion.

He opposed the Bush tax cuts,which have already cost over $1.8 trillion dollars. And last December he opposed the extension of President Bush's tax cuts to the wealthiest Americans. By not ending tax cuts for the wealthiest, we will spend another $700 billion over the next decade.

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Center for Rural Affairs statement on debt ceiling and budget compromise

Lyons, NE - While President Barack Obama, Speaker of the House John Boehner, and other Congressional leaders worked to reach an eleventh hour compromise that would allow the national debt ceiling to increase in exchange for, potentially, as much as $2 trillion in long-term spending cuts, many in rural America continued to try to sort out what all the horse-trading will mean for their communities.

"Rural development funding for small towns and small business will face growing pressure under the federal budget agreement, which will reduce annual appropriations for all programs by nearly $1 trillion over the next decade," said Chuck Hassebrook, Executive Director of the Center for Rural Affairs. "But rural development funding has already been cut by more than one fourth, just since 2003."

According to Hassebrook, there is an alternative to reducing investments in the future of rural communities. "We should make the first cut by putting hard caps on subsidies to the nation's largest farms - subsides they use to drive mid-size farms out of agriculture," explained Hassebrook.

"The current policy of unlimited mega farm subsidies is so misguided that smart reforms could both save money AND strengthen rural America," Hassebrook argued. "It seems like a no-brainer for both parties - cut counter productive spending first."

A 2007 Center for Rural Affairs analysis demonstrated that USDA and Congress have severely over-subsidized the biggest and most powerful farmers while consistently under-investing in rural America's future, spending twice as much on subsidizing the 20 largest farms in each of 13 leading farm states as it invested in rural development programs to create economic opportunity for millions of people in thousands of towns in the 20 rural counties with the most out-migration in each respective state - (the full report - An Analysis of USDA Farm Program Payments and Rural Development Funding In Low Population Growth Rural Counties, a.k.a. Oversubsidizing and Underinvesting... can be viewed or downloaded at: http://www.cfra.org/node/603)

Senator Chuck Grassley issued the comment below regarding his vote against the deal with the White House to increase the federal debt limit.

"I voted against the plan because it delays meaningful spending reductions, fails to address entitlement spending in a way that will save the programs for future generations of retirees, and leaves open the possibility of tax increases.

"In fact, the White House said yesterday it will seek to increase taxes in the second part of the deal.  Tax increases are the wrong answer for a struggling economy, and recent history proves that higher taxes don't go to the bottom line.  Instead, they're a license for Washington to spend even more.  Since World War II, for every dollar in new taxes, the government has spent $1.17.

"The federal debt will continue to climb another $7 trillion under this deal, and the promise of cuts down the road, rather than making those decisions now, is more of the same from Washington.  Congress can always change the promises made in this deal, and the sad reality is that Congress has a record of abandoning fiscal responsibility when it's time for tough decisions.  Putting the decisions off, as this deal does, raises skepticism about whether the commitment to dollar-for-dollar reductions will be met along with this historically high debt-limit increase, especially considering the fact that until Memorial Day, the President wanted to increase the debt limit with no strings attached.

"Remember also that in February, President Obama submitted his budget proposal to Congress that refused to address looming deficits and debt.  His budget would have added another $13 trillion to the national debt over ten years.  Then the President delivered a speech in April that magically found $4 trillion in spending cuts.  So, in just a matter of weeks, President Obama found $4 trillion in spending that no longer needed to be spent.  The American people have to wonder how Washington can be serious about budgets and spending if the President, in a matter of weeks, can find $4 trillion of spending that was of national importance on February 14, but is no longer necessary on April 13.  It's this type of behavior that leads people to be cynical of Washington and the federal government.  It's little wonder that lofty commitments from Washington are most often received in Middle America as just more empty promises and political rhetoric.

"During the last five years, debt-limit increases have averaged $800 billion for six months, so this $2.4 trillion increase is an extraordinary expansion of government debt, just the opposite of what we ought to be doing.  I wish this plan was proportional to the size of the problems we face."

WASHINGTON, D.C. - Senator Tom Harkin (D-IA) today issued the following statement after the U.S. Senate voted 74-26 to approve the debt-ceiling deal.  Last night, Harkin delivered a floor speech in opposition to the measure. To view his video, click here.

"To say that this is the wrong policy at the wrong time is a gross understatement.  This deal will destroy millions of jobs in both the public and private sectors.  And by shutting off Federal funding and investment - a critical engine sustaining our sputtering economy - it could easily plunge America back into recession.

"I have advocated a balanced approach to deficit reduction, including both spending cuts and revenue increases.  But this deal expressly rejects a balanced approach.  It offends people's basic sense of fairness that Congress would slash funding for things like student loans and cancer research, essential funding for seniors, people with disabilities, and the most vulnerable people in our society but ask not one dollar of shared sacrifice from millionaires and billionaires, who have received huge tax breaks over the last decade.  

"Since the 1930s, Congress has routinely raised the debt ceiling 89 times, including seven times during the presidency of George W. Bush, and 18 times under President Reagan.  Yet, this time, Congressional Republicans held the economy hostage, threatening to default on our national debt and plunge America back into recession unless their demands were met.


"This deal was not about reducing the deficit; first and foremost, this deal was about preserving hundreds of billions of dollars in tax breaks for corporations and for the wealthiest people in our society."

 

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Q.  What are tax expenditures, and why are they in the news?

A.  Tax expenditures are defined in the Congressional Budget Act of 1974 as lost federal income due to provisions in the tax code that exempt or reduce taxes for certain groups, products or activities.  Tax expenditures were intentionally passed by Congress for certain policy goals, such as encouraging employer-provided health insurance or home ownership, so they are also called tax incentives.  Since they help achieve goals set by Congress, they are not loopholes. The debate in Washington over reducing the federal debt has invoked whether certain tax expenditures should be ended.  Stopping these tax expenditures would raise money for the federal Treasury but also would take away tax incentives that are used by tens of millions of middle-income taxpayers.  There's also controversy over whether the amount of revenue raised by ending some of the tax expenditures is overstated and whether the revenue gained would be worth ending policies that support widely desirable behavior, like pension plan contributions.  

Q.  What are the biggest tax expenditures?

A.  An analysis by Senator Orrin Hatch of Utah, who serves as Ranking Member of the Senate Committee on Finance, which is responsible for tax legislation, determined these top 10 largest tax expenditures.  The analysis was based on data from the nonpartisan Joint Committee on Taxation, Congress' official estimator for the cost of tax legislation.

Exclusion for Employer-Provided Health Insurance.
Representing 13 percent of tax expenditures, it's the single largest tax expenditure.  To do away with this would threaten access to health care for families and individuals that have health insurance through their employers.

Home Mortgage Interest Deduction.
Having helped millions of Americans achieve home ownership, this expenditure accounts for nine percent of all tax expenditures.

Preferential Rates for Dividends & Capital Gains.
Take away this tax expenditure which accounts for eight percent of tax expenditures, and the rate on dividends will almost triple in less than 18 months, and the rate on capital gains will go up 59 percent, also in less than 18 months.  This will discourage investment in stocks and bonds.

Exclusion of Medicare Benefits.
Accounting for seven percent of tax expenditures, its elimination would increase taxes seniors' Medicare benefits.

Pre-Tax Treatment of Defined Benefit Pension Plan Contributions.
This is a tax benefit that reduces the cost for those workers who save for retirement.  It represents six percent of tax expenditures.

Earned Income Tax Credit. 
Designed for low-income people, the Earned Income Tax Credit accounts for five percent of all tax expenditures.

Deduction for State and Local Taxes. 
This deduction would hit high-tax states hardest, driving up the marginal rate of taxpayers who take this deduction by as much as 35 percent.  It represents five percent of all tax expenditures.

Pre-Tax Treatment for Contributions to a 401(k).  
At four percent of tax expenditures, this is a significant incentive to families and individuals to save for retirement.

Exclusion of Capital Gains at Death.  
If this one goes, death would be taxed twice.  First, the decedent's estate might get hit with the death tax.  Then the decedent's heirs would be subject to tax again on the gain embedded in any inherited asset, should they decide to sell it.  This accounts for four percent of tax expenditures.

Deductions for Charitable Contributions. 
This is the tax benefit for donations to charities other than education and health care institutions, including donations to religious institutions.  This charitable deduction represents four percent of tax expenditures.

Source: Joint Committee on Taxation, "Estimates Of Federal Tax Expenditures For Fiscal Years 2010-2014," December 21, 2010. http://www.jct.gov/publications  

 

Q.  Are tax expenditures the same as tax loopholes?

A.  Despite some political arguments to the contrary, tax expenditures are neither spending nor tax loopholes for millionaires, yachts or corporate jets.  Less than one-tenth of one percent of all tax expenditures benefit corporate jet owners.  Tax expenditures are used by many families and individuals.  Consideration of them by Congress should be done in a comprehensive tax reform debate to make sure the tax code is made more efficient and no more burdensome than it is today.

The Better Business Bureau is pleased to announce that Patt Englander has accepted the position of Quad City BBB Community Representative.  Patt will be responsible for implementing a new vision and strategic direction for the BBB in the Quad Cities.  She will lead a decade-old office by reenergizing the local BBB brand and promoting the 450 Quad City BBB Accredited Businesses.  

"We are thrilled to have Patt serving the BBB.  We are a 99 year old organization and Patt's skills will propel us in to our second century of work.  She is a proven and recognized Quad City leader," stated Chris Coleman, President of the BBB serving Greater Iowa, Quad Cities and Siouxland Region. 

Former President and Chief Executive Officer of the Mississippi Valley Regional Blood Center, Patt has also served in leadership positions at the American Red Cross of the Quad Cities and Center for Active Seniors.    She has a MBA from St. Ambrose University and recently helped create a local Dress for Success affiliate.

In recent years, the BBB system has embraced the benefits of technology with consolidation of services.   The new vision for the Quad Cities reverses that trend by reopening the Bettendorf office and focusing exclusively on the Quad Cities and surrounding areas.  The BBB will still provide state-of-the-art online and phone services to residents of the Quad Cities.  The re-tooled office will add a local flavor and enable the BBB to effectively promote its Accredited Businesses, warn consumers of pending scams, and provide tips and advice to the community.

Englander stated, "The mission to advance trust- right here in the Quad Cities is why I was attracted to this position.  In tough economic times like we are in today, I know the BBB is needed more now than ever.   I look forward to building our brand and our membership."

The BBB's mission is to be the leader in advancing marketplace trust. The BBB accomplishes this mission by creating a community of trustworthy businesses; setting standards for marketplace trust; encouraging and supporting best practices; celebrating marketplace role models, and denouncing substandard marketplace behavior.  The BBB is the resource to turn to for objective, unbiased information on businesses. Our network of national and local BBB operations allows us to monitor and take action on thousands of business issues affecting consumers at any given time.

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