18 Feb 2011

Braley Works to Force Congress to Buy American

By Alexandra Krasov
Washington, DC - February 15, 2011 - Today, Congressman Bruce Braley (IA-01) introduced an amendment that would force offices in the Legislative branch to buy American-made products when using taxpayer funds. Rep. Braley offered the "Buy American" amendment to the Republican budget that is being debated and voted on this week.   

"Every day, I hear members in the House chamber talk about supporting American workers and the products they make. This amendment makes us put our money where our mouth is," said Rep. Braley.

The non-partisan Congressional Budget Office estimates that there will be no additional costs from this amendment.

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17 Feb 2011

Harkin's Analysis of House Republican Budget Cuts on Education in Iowa - Major Proposed Cuts from Head Start to Pell Grants

By Rick Martin
February 15, 2011

Later this week, the U.S. House will consider a budget proposal for Fiscal Year 2011.  The current funding proposal (called a "continuing resolution") expires on March 4, 2011.  Analysis released today shows that the budget proposal will have a devastating impact on education in Iowa if enacted.  Below, please find some specific details.

Harkin's full statement on the budget proposals before Congress can be found here: http://harkin.senate.gov/press/release.cfm?i=331165.

"From crib to college, Iowa students will be at a disadvantage if the House proposal is enacted," said Harkin.  "There is no question that the time has come for tough budget decisions, but the smart way to bring down the deficit is for Congress to pursue a balanced approach of major spending cuts and necessary revenue increases, while continuing to make investments in education.  That is the only way our country will remain competitive in the global economy and create good jobs that provide a sustained economic expansion in the years ahead."

Head Start:
The House proposal would eliminate comprehensive early childhood services nationwide for 218,000 low-income children and their families next year (a cut of over 20 percent), close over 16,000 Head Start and Early Head Start classrooms, and lay off 55,000 teachers, teacher assistants, and related staff.
  • Estimated Impact on Iowa: 1,794 fewer kids in Iowa will have access to Head Start services.


Title I Grants:
The House plan cuts an additional $5 billion from the Department of Education, including slashing Title I education funding by nearly $700 million, meaning 2,400 schools serving 1 million disadvantaged students could lose funding, and approximately 10,000 teachers and aides could lose their jobs.

  • Estimated Impact on Iowa: our state would see a cut of more than $4.5 million in grants to local educational agencies.


Special Education:
The House Republican proposal would cut almost $600 million in federal special education funding.   This reduction could lead to the loss of 7,000 education staff serving such students.

  • Estimated Impact on Iowa: Lost jobs and potentially higher state and local taxes to make up for the loss of more than $5 million in federal funds to support special education.


Pell Grant program:
The House proposal cuts the maximum Pell Grant award by $845 per student from $5,550 to $4,705, a 15 percent cut.

  • Estimated Impact on Iowa:

Under current funding levels:
Aid Available $809,200,000
Average Award: $3,937

Under the House Proposal:
Aid Available $675,700,000
Average Award: $3,290

For more information, please call Kate Cyrul or Bergen Kenny in Senator Harkin's press office at (202) 224-3254.

14 Feb 2011

Braley Statement on President's Budget

By Randy Stalsberg
Washington, DC - February 14, 2011 - Today, Congressman Bruce Braley (IA-01) released the following statement in response to the President's budget for fiscal year 2012:

"Today, the President released a budget that clearly involved some tough decisions - and I'm glad to see he is making an effort to address the very real problem of our outrageous deficit," said Rep. Braley. "I was pleased to see some of the President's proposed cuts, and while it's a good start, I think we can go even further.

"This budget clearly reflects our new national reality - the era of big borrowing and big spending is over. But we can, and must, go even further to reduce our deficit. As I said to the President and Speaker Boehner in a letter last week, we can't present Americans with false choices over issues as important as our national deficit and debt. We must work together - in the House, with the Senate and with the President - to present a responsible, common-sense budget plan to the American people. Our country's future depends on it."

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14 Feb 2011

President's proposed budget is very disappointing, Grassley says

By Randy Stalsberg
Monday, February 14, 2011

Sen. Chuck Grassley of Iowa made the following comment on the President's proposed budget for Fiscal Year 2012 released today.  Grassley is a senior member of the Budget Committee and the Finance Committee.  He is former chairman and ranking member of the Finance Committee, with jurisdiction over tax policy.

"The President said families have to live within their budgets, but his proposal makes a mockery of that statement.  Over 10 years, the debt balloons from $14 trillion today to more than $26 trillion. On any measure of debt, his budget makes things worse, not better.  Instead of tax reform, there are the same scattershot tax increases used to pay for new spending.  The President isn't using his bully pulpit to develop a national consensus on any issues that require leadership and the use of political capital.  President Bush stuck his neck out on entitlement reform, and it seems to me this President is avoiding a national debate on entitlement spending.  It's hard to reconcile the President's stated goal of getting the economy moving with his preference for tax increases.  Businesses have been crystal clear on tax increases and excessive regulations being the enemies of job creation.  You add all that up, and the President's budget is very disappointing."

14 Feb 2011

Braley Works to Help Small Businesses

By Alexandra Krasov
Calls for repeal of health care law provision that hurts businesses

February 10, 2011

Washington, DC - Today, Congressman Bruce Braley (IA-01) signed on to a bill that would help small businesses across the country by repealing a burdensome provision of the health care law, which was added by the Senate. The Small Business Paperwork Mandate Elimination Act will repeal the unpopular "1099" provision.

As a result of the so-called "1099" provision in the health care law, starting in 2012 small businesses will be required to submit 1099 forms for vendors that provide basic day-to-day operations, including office supplies, phones, shipping and other minor expenses. The Small Business Paperwork Mandate Elimination Act, sponsored by Rep. Dan Lungren (R-CA), will repeal this provision to make sure small businesses can focus on creating jobs.

"Small business owners are making touch choices every day, fighting to keep their businesses afloat. This is no time to hit them with new burdensome regulations," said Rep. Braley. "This provision increases the cost of doing business and puts an unfair burden on business owners when they can least afford it. I know that small businesses are the engine of our economy - they are the job creators in so many communities in Iowa and around the country. And I want to make sure they can stay focused on creating jobs."

Last year, Rep. Braley supported a similar provision to repeal the "1099" requirement as part of the Small Business Tax Relief Act. The "1099" provision was not included in the House version of the health care bill that Rep. Braley supported last Congress, but was later added into the Senate version of the bill which was then passed and signed into law.

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14 Feb 2011

Earned Income Tax Credit improper payments

By Grassley Press
Wednesday, February 09, 2011

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."

10 Feb 2011

Braley Calls on President, Speaker to Provide Plan for Lowering Debt.

By Randy Stalsberg
Asks President, Speaker for a plan to avoid raising debt ceiling


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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10 Feb 2011

timeframe promised for U.S.-Korea trade agreement

By Sen Chuck Grassley

The United States trade representative today said the administration would submit the United States-Korea free trade agreement to Congress "in the next few weeks." The submission would trigger a mandatory schedule for congressional action.  Sen. Chuck Grassley of Iowa made the following comment on this development.  Grassley is former chairman and ranking member of the Committee on Finance, with jurisdiction over international trade.  He is a senior member of the committee.

"The trade representative's comment today about action on pending trade agreements is very good news, if it's not more lip service.  The rest of the world has been moving forward with trade expansion, while this administration has put the United States on the sidelines, and it's been at the expense of America's workforce.  Employers and entrepreneurs in manufacturing, agriculture and the service sector need new market opportunities to grow businesses and create jobs.  The President's made a commitment to doubling U.S. exports.  That's impossible to achieve on the margins, without trade agreements.  The trade representative said the President intends to submit the U.S.-Korea trade agreement to Congress 'in the next few weeks.'  This is the most specific timeframe the White House has offered on the agreement since reworking it last year.  The White House should hold to this timeframe.  A big, new export market is exactly what U.S. producers need right now.  If and when the agreement comes to Congress, I'll do everything I can to help get it approved."

07 Feb 2011

Tax Amnesty Program Exceeds State Budget Goal

By Kara Beach

Generates More than $314 million in State Revenue

CHICAGO - February 7, 2011. More than 78,000 taxpayers sent payments to the Illinois Department of Revenue during the state's tax amnesty program that concluded last November. The program exceeded its budgetary goal, adding $314 million to the general revenue fund for FY 2011.

"This program's success is good news as we work to stabilize state finances and to maintain vital public services," Governor Pat Quinn said. "This much-needed revenue will help our state to meet its obligations and is another important step towards making Illinois fiscally sound."

The FY 2011 budget estimated that tax amnesty would infuse $250 million into state government coffers during this fiscal year. The state received a total of $717 million in tax payments; $314 million went to the general revenue fund, with the balance going to local governments and the state's income tax refunds.

"We are pleased with this program's end result - Illinois' tax amnesty exceeded expectations," said Brian Hamer, Director of Revenue. "The program was straightforward and simple, and it generated hundreds of millions of dollars to help the state meet its obligations to vendors, taxpayers, and providers of essential services."

During the five-week tax amnesty program, which ended Nov. 8, those who paid taxes from previous years were able to avoid interest and penalties on their tax debts. On Nov. 9, penalties and interest on those debts doubled.

While individuals were the vast majority of participants in the program, corporations accounted for most of the program's tax receipts. Companies scheduled for audits, as well as taxpayers in the collection program, also used the amnesty period, reassessing their own tax returns and making payments to fully eliminate their debt to the state.

In addition to the immediate cash infusion, tax amnesty broadened the tax base. Non-filers accounted for $12 million of state receipts, and will be easier for the state to track in future years. Additionally, improved tax tracking software and enhanced audit and collection capabilities will further assist the state in monitoring filers who came forward under amnesty for future compliance.

Tax Type                           Participants                 State Share of Amnesty Receipts

Individual Income Tax         59,777                         $ 20 million

Business Income Tax          5,264                          $ 252 million

Sales and Use Tax              9,347                          $ 111 million

Other taxes                         3,801                          $ 25 million

Total                                 78,189                          $ 408 million

 

###

07 Feb 2011

Q & A: Dollars and Sense

By Sen Chuck Grassley

Q.  What is the difference between federal deficit and federal debt?

A.  The federal deficit is the annual amount the federal government spends over what it takes in.  According to the non-partisan Congressional Budget Office, the federal government is projected to take in $2.2 trillion in fiscal year 2011 and spend $3.7 trillion.  Because Congress now spends $1.68 for every dollar it collects through taxes, the result will be a deficit of $1.5 trillion.  Fiscal year 2011 will be the third straight year with an annual deficit of more than $1 trillion.  The federal debt is the cumulative amount of annual deficits.  The current federal debt is more than $14 trillion.

Q.  Why is the budget freeze in the news?

A.  Congress and the President are discussing ways to reduce spending.  In his State of the Union address in January, President Obama called for a five-year freeze on non-security related discretionary spending.  Congress determines discretionary spending levels annually, by passing 12 appropriations bills.  Entitlement programs such as Medicare and Social Security are not altered unless Congress passes a law to modify the programs.  The proposed freeze would affect about 11 percent of the federal government's budget.  President Obama predicts that his freeze would save $400 billion over the next 10 years.  What does that mean in terms of overall debt?  Well, the Congressional Budget Office predicts that if the federal government continues to spend at its current rate, it will add between $7 trillion and $12 trillion to the national debt over the next decade.  The $400 billion in savings President Obama predicts is 5.7 percent of $7 trillion and 3.3 percent of $12 trillion.  So, it's a drop in the bucket.

The reality is that you can't raise taxes high enough to satisfy the appetite of Congress to spend money.  Consider this.  Using current Congressional Budget Office projections, over the next 10 years federal spending and interest payments will average 23.5 percent of the gross domestic product.  This is higher than the 40-year average of 20.8 percent.  Also over the next 10 years, revenues coming into the federal government are projected to average 19.9 percent of the gross domestic product, compared to the 40-year average of 18 percent.  So, even with revenues at historic highs, spending will far outpace revenues.

Q.  What should be done to get the national debt under control?

A budget freeze is a step in the right direction, but we need a leap in the right direction.  Washington has to get serious about getting the debt under control.  That means taking an all-of-the-above approach that includes spending freezes, spending reductions, a balanced budget amendment to the Constitution, and increased efforts to stop fraud, waste and abuse of tax dollars.  Beyond freezing non-security related discretionary spending at fiscal year 2010 levels for five years, as the President proposes, I support freezing non-defense related discretionary spending at fiscal year 2008 levels for 10 years.  This change alone would save almost $1 trillion.  That's more than twice as much savings as under President Obama's proposal.

Q.  What else are you doing to get spending under control?

I'm a cosponsor of a resolution that proposes a balanced budget amendment to the Constitution.  A constitutional amendment requires a two-thirds vote in both houses of Congress as well as the approval of three-fourths of state legislatures.  Congress has voted on a balanced budget amendment several times over the years, but there have never been enough votes to approve the amendment and send it to the states for ratification.  I've supported a balanced budget amendment going back to my service in the House of Representatives.  In the Senate, I cosponsored the resolution proposing the amendment the last time it was brought up, in March 1997, when it failed by just one vote.  I'm also a cosponsor of the Reduce Unnecessary Spending Act.  This bill, which I also cosponsored during the last Congress, would let the President single out specific spending items in bills that land on his desk.  Congress would have to hold an up-or-down vote on the spending items within 10 days of the President's sending them back, as long as the President sends them within 45 days of signing the bill.  Any and all funds that are rescinded would go to reducing the deficit, under this proposal.

All this and more should be done to reduce the deficit and rein in the federal debt.  The debt will reduce opportunities for future generations, and the U.S. economy will continue to suffer the weight of a government that spends far more than it can afford.  It's only common sense that you can't sustain a situation like we have today, where for every dollar the federal government spends, 40 cents of it is borrowed

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