Senator Chuck Grassley Statement Submitted to the Record

Partisan and Incomplete Processing of Bipartisan Economic Incentives Package

Monday, Feb. 22, 2010

The Senate is about to engage in a cloture vote on the Senate Democratic Leadership's third stimulus bill.  What I find surprising is that what we are about to vote on indisputably and absolutely belongs to the majority leader.  That is to say we are not going to vote on a bipartisan package that I put together with Finance Committee Chairman Baucus.  I was under the impression that the Senate Democratic Leadership was genuine in its desire to work on a bipartisan basis, but clearly I was mistaken.  Although the Senate Democratic Leader was highly involved in the development of a bipartisan bill, he arbitrarily decided to replace it with a bill he hopes to jam through the Senate.

As much as I was surprised by the Senate Democratic Leader's disregard for bipartisanship, I am even more surprised by the explanations given by him and his cohorts.

Perhaps the most significant change between the bipartisan package Chairman Baucus and I helped put together and the package we will be voting to move to is that a package of expired tax provisions has been removed.  Normally referred to as extenders, these generally very popular and certainly bipartisan provisions have been extended several times over the past few years.

What is surprising is that hyper-partisan members of the majority have suddenly decided that the tax extenders are partisan pork for Republicans.

A representative sample comes from one report, which describes the bipartisan bill as "an extension of soon-to-expire tax breaks that are highly beneficial to major corporations, known as tax extenders, as well as other corporate giveaways that had been designed to win GOP support."  Just today the Washington Post includes this attribution to the Senate Democratic Leadership.  From the Post:

" "We're pretty close," {the majority leader} said Friday during a television appearance in Nevada, adding that he thought quote, "fat cats", unquote, would have benefitted too much from the larger Baucus-Grassley bill."

The portrait being painted by certain members of the majority, echoed without critical examination in some press reports, is wildly inaccurate.

For one thing, the tax extenders include provisions such as the deduction for qualified tuition and related expenses and also the deduction for certain expenses of elementary and secondary school teachers.  If you are going to school or if you are a grade school teacher, the Senate Democratic Leadership thinks you are a fat cat so you are on your own.  If your house was destroyed in a recent natural disaster and you still need any of the temporary disaster relief provisions contained in the extenders package, too bad, because helping you would amount to a corporate giveaway in the eyes of some.

The tax extenders have been routinely passed repeatedly because they are bipartisan and very popular.  Democrats have consistently voted in favor of extending these tax provisions.

House Speaker Nancy Pelosi released a very strong statement upon House passage of tax extenders in December of 2009, saying this was, quote, "good for businesses, good for homeowners, and good for our communities," end quote.  December of 2009 was not very long ago.  In 2006, the then-Democratic Leader released a blistering statement, quote, "after Bush Republicans in the Senate blocked passage of critical tax extenders," end quote, because, quote, "American families and businesses are paying the price because this Do Nothing Republican Congress refuses to extend important tax breaks," end quote.  I ask unanimous consent that both of these statements be printed in the record in their entirety.

Recent bipartisan votes in the Senate on extending expiring tax provisions have come in the Emergency Economic Stabilization Act of 2008; the Tax Relief and Health Care Act of 2006, which passed the Senate by unanimous consent; and the Working Families Tax Relief Act of 2004, which originally passed the Senate by voice vote although the conference report received 92 votes in favor and a whopping 3 against.  According to the non-partisan Congressional Research Service, extension of several of these provisions go back even further, including the Tax Relief Extension Act of 1999, which again passed the Senate by unanimous consent  but lost 1 vote on the conference report.

Blinded and dazed by the power of their now not-so-super majority, certain Democrats have in the last few weeks turned against the extenders.  One Democrat said, quote, "Our side isn't sure that the Republicans are real interested in developing good policy and to move forward together.  Instead, they are more inclined to play rope-a-dope again.  My own view is, let's test them," end quote.  Another member of this large 59-vote majority exclaimed, quote, "It looks more like a tax bill than a jobs bill to me.  What the Democratic Caucus is going to put on the floor is something that's more focused on job creation than on tax breaks," end quote.

The only explanation for this behavior is that certain senators have decided that it serves a deeply partisan goal to slander what have been for several years bipartisan and popular tax provisions benefitting many different people.

Today's Washington Post article I quoted from earlier includes a statement from a Senate Democratic leadership aide saying that, quote, "No decisions have been made, but anyone expecting us immediately to go back to a bill that includes tax extenders will be sorely disappointed," end quote.

Having put their heads into the sand, this chamber's Democratic leaders seem intent on keeping them there. I appeal to all of you to vote against the Democratic Leadership's effort today to jam the Senate.  A vote for the Senate Democratic Leadership's cloture motion is a vote to foreclose an opportunity to improve the bill.  It also is a vote to forbid any corrections to mistakes in the bill.  And there is a significant mistake in the Senate Democratic Leadership's bill.  The bill as currently written would allow employers of illegal workers to benefit from the payroll tax holiday.  We should correct that mistake with an amendment.  The Senate Democratic Leadership's posture prohibits this correction.

Either the Democratic leaders are playing partisan politics with tax extenders, or they don't understand the worth of the provisions to the economy, including job retention and creation.  The biodiesel industry alone says 23,000 jobs are at risk due to the biodiesel tax credit being allowed to expire.  Those workers are not fat cats.

And in case anyone thinks biodiesel is something only Iowans worry about, these green jobs are in forty-four of the fifty states.  There are 24 facilities in Texas.  There are 15 facilities in Iowa.  There are 6 facilities in Illinois and 6 in Missouri.  There are 4 facilities in Washington.  Ohio has 11 facilities.  There are 5 facilities in Indiana.  There are 3 facilities each in Mississippi and South Carolina.  There are 7 facilities in Pennsylvania and 4 in Arkansas.  New Jersey has 2 facilities.

There is one facility in North Dakota. Only 6 of the 50 states do not have some biodiesel production.  They are Alaska, Delaware, Maine, New Hampshire, Vermont, and Wyoming.  The other forty-four states have some biodiesel presence.   I ask unanimous consent to put in the record an article from the Erie, Pennsylvania, newspaper, describing the struggles of a local biodiesel plant.

So we need to turn away from talk of fat cats. We need to get back to work on the bipartisan package that was in the works until the Senate Democratic Leadership's dramatic change in direction.  Many people who are not fat cats or a part of large corporations are counting on these provisions being extended, and they are counting on their elected representatives to work together, as we were doing, to get the job done.

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Back to Work Act will benefit small businesses that hire workers who have been unemployed for more than 60 days

Washington, DC - Congressman Bruce Braley (D-Iowa) introduced legislation today that will spur small business job creation by creating a payroll tax cut for small business owners who hire previously unemployed workers. The Back to Work Act will exempt small businesses from paying the employer's share of the social security tax for the rest of 2010 if they hire workers who have been unemployed for more than 60 days prior to employment. The Back to Work Act is similar to bipartisan legislation proposed by Senators Charles Schumer (D-NY) and Orrin Hatch (R-Utah).

"It goes without saying that America's small businesses are the backbone of our economy," Braley said. "As we continue to develop policies to strengthen our economy and put America's middle class families back to work, small business development will be one of the keys to our success.  This payroll tax cut is win-win, giving small business owners the help they need to create good-paying jobs for unemployed workers."

The Back to Work Act provides small business owners with greater incentives to hire workers for long-term positions, providing additional tax incentives for businesses that retain employees for 52 consecutive weeks. The payroll tax cut provides greater incentive for employers to move quickly to hire new workers because the credit expires at the end of the year.  The sooner employees are hired, the more time small business owners have to benefit from the credit.

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"USDA can help ensure there is a first line of defense against animal diseases across the United States by placing qualified veterinarians in areas where there is a critical need," Vilsack said. "This program will help reduce veterinary shortages, especially in the area of food animal medicine, which will reduce stress on producers and improve the health of the livestock industry."

USDA's National Institute of Food and Agriculture (NIFA) administers the Veterinary Medicine Loan Repayment Program (VMLRP), which was established in the National Veterinary Medical Services Act of 2003. NIFA issued an interim rule for the program on July 9, 2009. Implementation of the program began on Jan. 22, 2010 when NIFA released a Federal Register notice asking for comments and nominations for shortage situations from the chief animal health official from each state and insular area and appropriate federal animal health officials. Guidance on what constitutes a shortage situation and nomination forms can be found on the NIFA Web site. Nomination forms are due March 8, and can be returned via email to vmlrp@nifa.usda.gov .

NIFA will convene a panel of federal and state animal health experts to recommend submitted nomination packages for official designation as a veterinary shortage situation. The public will be able to review designated veterinary shortage situations in list and/or map form, along with information describing the nature of the shortage situation.

NIFA expects to begin accepting applications from veterinarians wishing to participate in the program on April 30, 2010. In return for a commitment of three years of veterinary services in a designated veterinary shortage area, NIFA may repay up to $25,000 of student loan debt per year. Loan repayment benefits are limited to payments of the principal and interest on government and commercial loans received for the attendance at an accredited college of veterinary medicine resulting in a degree of Doctor of Veterinary Medicine or the equivalent. NIFA projects applications will be due June 30, and that offers will be made by September 30.

Veterinarians are critical to the national food safety and food security infrastructures, and to the health and well-being of both animals and humans; however, major studies indicate significant and growing shortages of food supply veterinarians and veterinarians serving in certain other high priority specialty areas. A leading cause for this shortage is the heavy cost of four years of professional veterinary medical training, which can average between $130,000 and $140,000. Congress established the VMLRP as a way to remedy this growing need.

Through federal funding and leadership for research, education and extension programs, NIFA focuses on investing in science and solving critical issues impacting people's daily lives and the nation's future. For more information, visit www.nifa.usda.gov.

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Audio Available: New Era Expansion Act will invest in clean energy job training

Washington, DC - Rep. Bruce Braley (D-Waterloo) introduced legislation today to authorize the Secretary of Labor to invest in clean energy job training at Iowa's community colleges. The New Era Expansion Act would build on the success of Braley's New Era Act of 2007, which established a recurring grant program at the US Department of Agriculture to provide grants to community colleges and advanced training facilities that train the next generation of agricultural-based energy professionals.

"Investing in clean energy job training is an important step to preparing Iowa's workforce for the 21^st Century economy," Braley said. "In this difficult economic climate, legislation like this is key to generating job opportunities for Iowa's middle class families.

"The New Era Expansion Act allows Iowa to continue to lead the way in clean energy production by creating a workforce education program in clean energy technology.  This bill is an important step toward equipping our state's workforce with the skills they need to fill clean energy production and manufacturing jobs that are being created throughout Iowa and the Midwest."

The New Era Expansion Act would authorize the Secretary of Labor to award grants to community colleges so they can establish a grant program for community colleges to start wind energy and energy efficient construction workforce training programs.

Under the bill, the Department of Labor would be charged with overseeing the implementation and scope of the training program.  Funding for the program would be determined through Congressional appropriations to the Department of Labor to satisfy the demand for and requirements of the program.

In his recent budget, President Obama requested $85 million for the Department of Labor to prepare more than 120,000 workers for work in the clean energy sector by June of 2012.

In the first year of the original New Era program, Braley was able to secure $276,318 in two-year grants from the New Era Rural Technology Competitive Grant Program for Eastern Iowa Community College and Hawkeye Community College.

Audio of Braley's weekly reporter conference call is available here.

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