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Updated 030810: From SEN. GRASSLEY for March 2010
RE: Unemployment extension, COBRA, Doc Fix
DA: March 25, 2010
Senator Chuck Grassley released the following statement after the Democrats twice blocked his efforts to extend unemployment and COBRA benefits and take care of the Medicare cut that doctors across the country will be hit with if the extension doesn’t pass.
“I offered a bill that extended unemployment and COBRA benefits and took care of the Medicare cut that doctors across the country will be hit with if the extension doesn’t pass, and I paid for it. A win-win for everybody. It’s a shame the Democrats are filibustering this much needed help. I also offered this fully-offset package as an amendment to the reconciliation bill that the House just voted on and is now on its way to the President’s desk. But, the majority blocked both opportunities to help those in need without adding to the deficit. My bill would help those who are still feeling the impact of a down economy and it wouldn’t add to the national debt we’re leaving to our kids and grandkids. Unfortunately, the majority decided they would once again rather make a political point than pass a bill and fix the problem.”
Thursday, March 25, 2010 Additional Iowa Counties to Receive Federal Disaster Aid after Severe Winter Storms
March 25 Grassley introduces bill to apply health care reforms to White House and all of Congress
WASHINGTON – Senator Chuck Grassley today introduced a bill to apply the new health care law to the President, Vice President, cabinet members, top White House staff, and the congressional staff who drafted the measure enacted this week.
Grassley amendments to establish this accountability in Congress and the administration have twice been rejected, first last December and again this week. “As a result, President Obama will not have to live under the Obama health care reforms, and neither will the congressional staff who helped to write the overhaul,” Grassley said. “The message to the people at the grassroots is that it’s good enough for you, but not for us.”
Congress could act to pass Grassley’s “Health Reform Accountability Act” at any time.
The new health care law includes an amendment Grassley sponsored and got adopted by the Finance Committee last September to have members of Congress and their staffs get their health insurance through the same health insurance exchanges where health plans for the general public would be available. During subsequent closed-door work on a Senate health care bill, Senate committee and leadership staffs were removed from this requirement.
In December, Grassley and Senator Tom Coburn attempted to offer a floor amendment to restore the requirement, but the Senate Majority Leader would not let their amendment come up for a vote. In addition to Senate committee and leadership staff, the amendment Grassley and Coburn filed during the Senate debate would have made the President, the Vice President, top White House staff and cabinet members all get their health insurance through the newly created exchanges. It would not have applied to federal employees in the civil service.
Legislative language to restore Grassley’s congressional coverage amendment to the comprehensive way it was approved by the Finance Committee also was not included in the final manager’s amendment to the health care reform bill passed by the Senate on Christmas Eve. And, this week, the Senate voted to defeat Grassley’s coverage amendment to the health-care reconciliation bill.
Grassley said, “It’s only fair and logical that administration leaders and congressional staff, who fought so hard to overhaul of America’s health care system, experience it themselves. If the reforms are as good as promised, then they’ll know it first-hand. If there are problems, public officials will be in a position to really understand the problems, as they should.”
Grassley said the motivation for his initiative is simple: public officials who make the laws or lead efforts to have laws changed should live under those laws. “It’s the same principle that motivated me to pursue legislation over 20 years ago to apply civil rights, labor and employment laws to Congress,” Grassley said.
Before President Clinton signed into law Grassley’s long-sought Congressional Accountability Act of 1995, Congress had routinely exempted itself. The Congressional Accountability Act made Congress subject to 12 laws, including the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, the Employee Polygraph Protection Act of 1988, the Fair Labor Standards Act of 1938, the Family and Medical Leave Act of 1993, the Federal Service Labor-Management Relations Statute, the Occupational Safety and Health Act of 1970, the Rehabilitation Act of 1973, the Veteran’s Employment and Reemployment Rights at Chapter 43 of Title 38 of the U.S. Code, and the Worker Adjustment and Retraining Notification Act of 1989.
Grassley also is working to make sure Congress lives up to the same standards it imposes on others with legislation such as his Congressional Whistleblower Protection Act.
As it stands, thanks to Grassley’s Finance Committee passed amendment, members of Congress and their personal staffs will be required to obtain their health insurance coverage through the newly created health care exchanges. Members and personal staffs will only be able to use their employer contribution to buy health care coverage in the exchange. Individuals will receive an age-adjusted contribution from the Office of Personnel Management with which to purchase a plan.
However, because the Senate rejected the amendment offered by Grassley last December and this week, committee and leadership staff in Congress, as well as the President, Vice President, the President’s cabinet and White House staff, will continue to access the Federal Employees Health Benefit Program.
Yesterday, the White House announced that the President planned to participate in the health insurance exchanges that the reform law will begin in 2014. “This is effectively an endorsement of my legislation to make sure political leaders live under the laws they pass for everyone else, and I appreciate it,” Grassley said. “The principle shouldn’t be voluntary for political leaders, though.”
Legislative language of Grassley’s Health Reform Accountability Act
WASHINGTON – Chuck Grassley today said President Barack Obama has added several Iowa counties to a major disaster declaration he originally made on March 2. Today’s news triggers the release of FEMA funds to additional counties to help them recover from the severe winter storms that occurred from January 19 - 26. Additional designations may be made at a later date after further evaluation.
“There has been an enormous amount of damage in Iowa caused by winter storms,” Grassley said. “It’s good to see new counties being added so Iowans can continue cleaning up the damage.”
FEMA will now provide assistance to Adams, Boone, Buena Vista, Cherokee, Clay, Dallas, Emmet, Greene, Hardin, Ida, Monona, Palo Alto, Pocahontas, Story and Union counties, in additional to those named in the March 2 declaration, through the Public Assistance program. The Public Assistance program assists state and local governments and certain private nonprofit organizations for emergency work and the repair or replacement of disaster-damaged facilities.
All Iowa counties are also eligible to apply for assistance through the Hazard Mitigation Grant program. The Hazard Mitigation Grant program assists state and local governments and certain private non-profit organizations for actions taken to prevent or reduce long-term risk to life and property from natural hazards.
Grassley sent a letter to Obama asking him to grant Governor Chet Culver’s request to declare Iowa a major disaster area as a result of the severe winter storms that occurred from January 19 - 26.
A copy of the text of Grassley’s letter and March 2, 2010 release can be found below.
TO: Reporters and Editors
RE: White House announcement about the President’s plan to participate in the health insurance exchange
DA: Wednesday, March 24, 2010
Senator Chuck Grassley released the following statement about the announcement made today by the White House about the President’s plan to participate in the health insurance exchange created by the health reforms enacted yesterday.
“The White House announcement that President Obama will participate in the health insurance exchange that starts in 2014 is effectively an endorsement of my amendment to make sure political leaders live under the laws they pass for everyone else, and I appreciate it. The principle shouldn’t be voluntary for political leaders, though. Congress and President Clinton affirmed that in 1995 by enacting the Congressional Accountability Act, which Senator Lieberman and I sponsored. The Act applied 12 civil rights, employment and labor laws to Congress for the first time ever. Today, my amendment to the pending health care reconciliation bill would require the committee and leadership staff in Congress to live under the same health care law as all the other congressional staff and members of Congress. It also would make certain that the President, Vice President and other top administration leaders always live under the law they enacted, not just when they opt to do so. It’s a matter of not having a double standard.”
More Than $1.6 Million to Iowa for Biofuels from USDA
WASHINGTON- Chuck Grassley today said that the U.S. Department of Agriculture, Office of Rural Development awarded payments totaling $1,644,242.64 to Iowa through the Bioenergy Program for Advanced Biofuels.
“It’s great to see the Department of Agriculture working with these Iowa biofuel companies to help lessen our dependence on foreign oil by continuing to develop advanced biofuels here at home,” Grassley said.
The Department of Agriculture will distribute the funds as shown below.
· Central Iowa Energy in Newton will receive $114,239.69 to help support and ensure an expanding production of advanced biofuels and to help provide economic incentives for increased production of advanced biofuels through the use of soybean oil and other oils.
· Iowa Renewable Energy in Washington will receive $216,592.82 to help support and ensure an expanding production of advanced biofuels and to help provide economic incentives for increased production of advanced biofuels through the use of soybean oil, other oils and animal fat.
· Maple River Energy in Galva will receive $9,742.32 to help support and ensure an expanding production of advanced biofuels and to help provide economic incentives for increased production of advanced biofuels through the use of soybean oil and other oils.
· Renewable Energy Group in Ralston, Iowa and Houston, Texas will receive $727,132.93 to help support and ensure an expanding production of advanced biofuels and to help provide economic incentives for increased production of advanced biofuels through the use of canola oil, soybean oil, other oils and animal fat.
· Riksch Biofuels in Crawfordsville will receive $10,401.22 to help support and ensure an expanding production of advanced biofuels and to help provide economic incentives for increased production of advanced biofuels through the use of soybean oil, grease oil and animal fat.
· Sioux Biochemical in Sioux Center will receive $13,961.87 to help support and ensure an expanding production of advanced biofuels and to help provide economic incentives for increased production of advanced biofuels through the use of soybean oil and other oils.
· Western Dubuque Biodiesel in Farley will receive $253,695.87 to help support and ensure an expanding production of advanced biofuels and to help provide economic incentives for increased production of advanced biofuels through the use of vegetable oil and technical tallow.
· Western Iowa Energy in Wall Lake will receive $298,475.92 to help support and ensure an expanding production of advanced biofuels and to help provide economic incentives for increased production of advanced biofuels through the use of waste vegetable oil, oils, greases and animal fat.
According to the Department of Agriculture, the Bioenergy Program for Advanced Biofuels provides payments to eligible in rural areas to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch, such as cellulose, crop residue, animal, food and yard waste material, biogas, vegetable oil and animal fat.
Each year, thousands of local Iowa organizations, colleges and universities, individuals and state agencies apply for competitive grants and loans from the federal government. The funding is then awarded based on each local organization or individual’s ability to meet criteria set by the federal entity.
032510
Senators question $1 million pay for charity's CEO
By STEPHEN OHLEMACHER Associated Press Writer The Associated Press WASHINGTON
A group of Republican senators is questioning high salaries and expensive travel bills for executives at the Boys & Girls Clubs of America, raising issues that could jeopardize millions in federal funding for the national charity.
The four senators said they were concerned that the chief executive of a charity that has been closing local clubs for lack of funding was compensated nearly $1 million in 2008. They also questioned why in the same year officials spent $4.3 million on travel, $1.6 million on conferences, conventions and meetings, and $544,000 in lobbying fees.
"The question is whether or not a very top-heavy organization might be siphoning off federal dollars that should be going to help kids," said Sen. Chuck Grassley of Iowa, the top Republican on the Senate Finance Committee.
The senators sent a letter to the head of the charity's board of governors Thursday seeking detailed financial information about executive compensation, travel and lobbying expenses, and how the national charity awards grants to local clubs.
The issues they raise could threaten the reputation of a popular charity that supports 4,300 local Boys & Girls Clubs serving about 4.8 million children. The timing threatens a bill moving through the Senate that would provide up to $425 million in federal money to the national organization over the next five years.
"That bill isn't going anywhere until we get the answers to these questions," said Sen. Tom Coburn, R-Okla.
Along with Grassley and Coburn, the letter was signed by Republican Sens. Jon Kyl of Arizona and John Cornyn of Texas.
Community Boys & Girls Clubs are all locally governed, but most receive tens of thousands of dollars each year from the Atlanta-based national charity. In 2008, the national charity reported receiving $41 million in government grants and $51 million in other gifts and contributions.
Roxanne Spillett, president and CEO of the Boys & Girls Clubs of America, received a total compensation of $988,591 in 2008, according to the charity's tax filings. She got a base salary of $360,774, a bonus of $150,000 and other compensation of $83,152, for a total of $593,926. She also received $385,500 in deferred compensation, most of which went to a retirement plan, and $9,165 in nontaxable benefits.
Evan McElroy, senior vice president of communications for the Boys & Girls Clubs of America, said the charity would respond to the letter before the March 29 deadline set by the senators. He declined to answer questions about the charity's finances when contacted Thursday but said in an e-mail that Spillett's base salary has not increased since 2006.
In the e-mail, McElroy said the charity's compensation committee follows Internal Revenue Service guidelines for nonprofit organizations. He said Mercer, a human resources consulting firm, analyzed executive compensation and found it was "appropriate for a large, national, tax-exempt, youth organization."
Despite recent closings, Spillett has overseen significant growth in the number of local Boys & Girls Clubs since becoming president of the national organization in 1996. During that time, the number of local clubs grew from 1,850 to 4,360.
Experts were split on whether Spillett's pay was excessive for a charity with revenues of $107 million in 2008, the latest year available.
"It's certainly not unusual to see people leading major charities, which after all, are very large, complex operations, making substantial salaries," said Brian Vogel, a senior principal with Quatt Associates, a management consulting firm in Washington.
Vogel said "$500,000 or $600,000 wouldn't be outside the marketplace. ... Remember, these are organizations that can be as hard to manage as a major for-profit business."
Annual compensation averaged $462,000 last year for the CEOs of charities with expenses of more than $100 million, according to a compensation study by Charity Navigator, a Web site that evaluates charities.
"The people who use our site, donors, would be appalled by a salary like this," Ken Berger, president and CEO of Charity Navigator, said of Spillett's compensation. "If you want to be a millionaire, go and work in the for-profit sector."
Coburn first raised issues about the charity's expenses in January, when the Senate Judiciary Committee passed the authorization bill, which is still awaiting action by the full Senate.
"I'm a big supporter of boys and girls clubs. I think they do a lot of good things," Coburn said. "But I think if we're going to give them a whole lot more money, which is what the bill plans to do, then we have a fiduciary responsibility to make sure that the money we are giving them now is spent properly."
March 12, 2010
TO: Reporters and Editors
FR: Jill Kozeny, 202-224-1308, for Senator Chuck Grassley
RE: CBO revised score
DA: Thursday, March 11, 2010
Senator Chuck Grassley issued the following comment about the revised score issued today by the Congressional Budget Office about the health care reform bill passed by the Senate on December 24. Senator Grassley is Ranking Member of the Committee on Finance.
“Once again, the nonpartisan experts are clearly stating that the pending legislation raises taxes, cuts Medicare, and increases health insurance premiums. The Congressional Budget Office confirms what the White House’s own actuary has been saying for months, that the Senate bill will increase government spending on health care even more than it is today. What’s more, the revised score still leaves out billions of dollars in administrative costs that haven’t been incorporated, meaning the new program would increase the deficit and raid Social Security and long-term care premiums even more than it already does. These policies are a far cry from what people hoped and expected health care reform to accomplish. The claim of deficit reduction has been shown to be false, and the common-sense view that the proposed overhaul is fiscally irresponsible is validated with this report today. Remember also that the Congressional Budget Office must score legislation as if a future Congress will not change any provisions that carry political difficulty, like the deep cuts to Medicare that are likely to jeopardize access for beneficiaries, and that’s a shaky assumption.”
Additional information from the Finance Committee Republican staff:
According to a Finance Committee Republican staff analysis, the revised score from the Congressional Budget Office makes clear that claims that the bill reduces the deficit will result in a raid on Social Security and CLASS Act premiums. The bill has to rely on at least about $25 billion in Social Security and CLASS Act premiums to be fully offset. If supporters are to claim they are going further and reducing the deficit, then the proposal raids $52 billion from Social Security premiums and $70 billion of CLASS Act premiums.
The claim that the bill reduces the deficit ignores the fact that those “savings” are actually $52 billion in premiums to Social Security and $70 billion in premiums to the CLASS Act. Those revenues are dedicated instead to funding those programs. Prior to now, the bill was fully offset if the Social Security and CLASS Act premiums were more honestly taken into account and not claimed for deficit reduction. But now with the new estimate, the net effect of the bill has been reduced to $118 billion from $132 billion, which is not even enough to cover even the Social Security and CLASS Act premiums. This reality is further underscored when one takes into account that the jobs bill that passed yesterday took $8 billion from the Medicare Improvement Fund. Those funds can no longer be counted in the estimates for health reform although this is not yet reflected in the CBO score released today.
Furthermore, the Congressional Budget Office also notes that it assumes $10-20 billion in administrative costs at the Internal Revenue Service and the Department of Health and Human Services for implementation. Additionally, the revised score highlights a $50 billion figure for grants that was not in the last estimate. The funding to cover these costs is not included in the bill, so the net budget effect is even less than the $118 billion, by these amounts, making it that much more than the bill is effectively raiding from Social Security and CLASS Act premiums even before supporters claim they are also taking those premiums for deficit reduction.
Again, deficit reduction claims are predicated on using funds paid into Social Security and premiums paid to the CLASS Act which are instead supposed to be strictly set aside to fund the benefits for these respective programs. The bill has to rely on at least about $25 billion in Social Security and CLASS Act premiums to be fully offset. If supporters of the health care reform bill claim the bill goes further and reduces the deficit, then it raids $52 billion from Social Security premiums and $70 billion of CLASS Act premiums.
Finally, when the Senate debate on the health care reform bill began in November, the Democratic leadership asked unanimous consent that any amendments that spent CLASS Act premiums be ruled out of order during floor consideration of their bill. With this updated CBO score, the health care reform bill no longer could meet that standard.
031110
TO: Reporters and Editors
RE: House enrichment of Build America Bonds
DA: Wednesday, March 10, 2010
Senator Chuck Grassley today made the following comment about the House “jobs” legislation’s expansion of the Build America Bonds provision. The Senate could take up the House bill this week. Grassley also released two responses from Goldman Sachs to his inquiries about the fees Goldman Sachs has received from Build America Bonds.
“Build America Bonds were created in the stimulus last year as a temporary program. A recently-passed House bill included an expansion. The Senate then passed a further expansion and sent the bill back to the House. The House took the Senate’s bill and made it richer. Now a temporary program is becoming bigger, and Wall Street is seeking to make it permanent. Wall Street is profiting and cheering the expansion.
“Build America Bonds result in higher underwriting fees for the Wall Street banks that underwrite the bonds than for traditional tax-exempt bonds. According to Bloomberg News, Build America Bonds provide 37 percent higher underwriting fees to the large Wall Street banks when compared with traditional tax-exempt bonds. According to an article in today’s Wall Street Journal, Wall Street banks have made more than $1 billion in underwriting fees on Build America Bonds deals in less than a year. The taxpayers pay for those lucrative fees to Wall Street.
“Build America Bonds are portrayed as an easy way to help school kids and green energy. What’s left out is that this is a spending program disguised as a tax cut, getting bigger each year, and Wall Street takes a healthy share. In an era of bailouts and disgust with government spending, House members should have to answer for giving yet more taxpayer dollars to Wall Street and foreign investors. Senators should understand the vote they’re about to take.”
031010
TO: Reporters and Editors
RE: Vote on H.R. 4213, the Tax Extenders Act
DA: Wednesday, March 10, 2010
Senator Chuck Grassley issued the following comment about his vote today against final passage of the Tax Extenders Act. The vote was 62 to 36 for the legislation. Following Grassley’s comment is the floor statement he delivered last week regarding the Tax Extenders bill.
“I proved my support for extending tax provisions to encourage private-sector job creation, many of which I authored in the first place, and my support for extending unemployment benefits with the bipartisan legislation I proposed in February with Senator Baucus. Our bill did not include $100 billion of spending that was not paid for under federal budget rules. It hurts economic recovery efforts and America’s financial stability for Congress to continue rampant deficit spending. The fact that Democratic leaders let the biodiesel tax credit lapse at the end of 2009 has cost jobs in Iowa and 43 other states with biodiesel production. It was irresponsible and even offensive for congressional leaders to make the extension of important renewable energy tax incentives contingent on adding another $100 billion to the federal budget deficit.”
031010
More Than $3 Million in Loans and Grants to Iowa from USDA
WASHINGTON - Chuck Grassley today said that the U.S. Department of Agriculture, Office of Rural Development has awarded eight grants totaling $3,040,000 to Iowa through the Rural Economic Development Loan and Grant Program.
“Local communities applied for these competitively awarded grants to help create and retain jobs for Iowans and promote economic growth in their areas,” Grassley said.
The Rural Economic Development Loan and Grant Program provides loans and grants to rural utility and telephone cooperatives who, in turn, re-lend the loan funds to local businesses to create or retain jobs in rural areas.
The Office of Rural Development will distribute the funds as shown below organized alphabetically by town.
· Citizens Mutual Telephone Cooperative in Bloomfield will receive a $300,000 grant in order to loan the money to the Davis County Hospital for their expansion and equipment upgrade. This project should create five jobs and retain 54 jobs.
· Southern Iowa Electric Cooperative in Bloomfield will receive a $300,000 grant in order to loan the money to the Davis County Community School District to construct the high school and upgrade equipment. This project should create two jobs and retain 174 jobs.
· Iowa Lakes Electric Cooperative in Estherville will receive a $300,000 grant to enhance an existing revolving loan fund to help Spencer Industries Foundation construct a community shell building in Spencer.
· Grundy County Rural Electric Cooperative in Grundy Center will receive a $740,000 loan to help construct a 15,000 square-foot tilt-up concrete facility to be used as a data center. The loan will be for 10 years at zero percent interest.
· Northwest Telephone Cooperative Association in Havelock will receive a $500,000 loan to help expand Country Maid, Inc. in West Bend. This project should create 19 new jobs and retain 10 jobs. The loan will be for 10 years at zero percent interest.
· Corn Belt Power Cooperative in Humboldt will receive a $300,000 grant to help fund a public infrastructure project to facilitate an immediate business expansion in West Bend. This project should create 19 jobs and retain 10 jobs.
· Independence Light & Power in Independence will receive a $300,000 grant to establish a revolving loan fund. The first loan will help purchase equipment for the Buchanan County Health Center.
· Consumers Energy in Marshalltown will receive a $300,000 grant to help finance the construction of a daycare facility in Gladbrook. This project should create two jobs and retain 116 jobs.
Each year, thousands of local Iowa organizations, colleges and universities, individuals and state agencies apply for competitive grants and loans from the federal government. The funding is then awarded based on each local organization or individual’s ability to meet criteria set by the federal entity.
030810
Today on the Senate floor, there was debate over whether the Senate-passed health care reform bill cuts taxes or raises taxes. Senator Grassley entered the following statement into the record in response. Senator Grassley has taken to the Senate floor numerous times since December 2009 on this tax question. The text of the speech follows, and corresponding charts are attached to this email.
Floor Statement of Senator Chuck Grassley
Tax Cuts v. Tax Increases in Senate-Passed Health Care Reform Bill
March 4, 2010
I want to resolve a dispute that arose on the floor earlier this morning.
There was differing opinions on whether the Senate-passed health care reform bill cuts taxes or raises taxes.
During the month-long floor debate on health care reform – ending with a final vote on Christmas Eve – I took to the floor on five occasions to address this question.
Let me top-line it for my Senate colleagues and my friends in the media.
According to the Joint Committee on Taxation, ONLY about 7% of Americans would actually receive the government subsidy for health insurance under the Senate-passed health care reform bill.
The remaining 93% of Americans would NOT be eligible for a tax benefit under the bill.
How can a person receive a tax cut if they do not receive a tax benefit?
Here is another powerful statistic that every policymaker needs to know:
While ONLY about 7% of Americans under $200,000 would actually receive the subsidy for health insurance, 25% of Americans under $200,000 would see their taxes GO UP.
This is even AFTER taking into account the government subsidy.
This means that for every 1 middle class family that would receive the government subsidy, 3 middle class families would pay higher taxes.
Again, this is all according to the Joint Committee on Taxation, the non-partisan experts.
Now, let’s get to specifics.
JCT tells us that in 2019 a little more than 13 million individuals, families, and single parents would receive the government subsidy for health insurance.
JCT also tells us that the total number of tax filers in 2019 would be 176 million.
That means that out of 176 million individuals, families, and single parents ONLY 13 million of them would receive a government subsidy for health insurance.
That is ONLY about 7% of tax filers.
Let me repeat that. Only about 7% of Americans will benefit from the subsidy for health insurance.
I have a pie chart here so my friends can see.
You can see here, out of 176 million tax returns, around 13 million of them get the government subsidy for health insurance.
This means that 163 million individuals, families, and single parents or 93% of all tax returns receive NO tax benefit under the Reid bill.
So what does this mean?
It means that there is a small beneficiary class under the Reid bill – about 7% of Americans.
And a very large NON-beneficiary class – 93% of Americans.
Is this NON-beneficiary class affected in other ways?
Yes. While one group of Americans in this class would be unaffected – another group of Americans will see their taxes GO UP.
And this group won’t have a tax benefit to offset their new tax liability.
That means that these Americans will be worse off under the Reid bill. What happened to their “NET tax cut”?
What they will see instead is a NET tax increase.
JCT data backs up this claim.
Specifically, based on JCT data, in 2019, 42 million individuals, families, and single parents with income under $200,000 will see their taxes GO UP.
This is even AFTER taking into account the subsidy for health insurance.
Again, this is on a NET basis.
Now, if we were to identify (1) those Americans who are NOT eligible to receive the tax credit and (2) those whose taxes go up before they see some type of tax reduction from the subsidy, this number climbs to 73 million.
I have a chart here that illustrates this:
The first bar illustrates what we’ve already established, but looks at Americans earning less than $200,000.
Here, 13 million individuals, families, and single parents would receive the subsidy.
The middle bar shows the NET tax increase number of 42 million Americans under $200,000.
Finally, when we identify those Americans who get NO benefit under the bill – and those Americans who see a tax increase – we find there are 73 million individuals, families, and single parents under $200,000 in this category.
I want to close by referring to a final chart that illustrates the winners and losers under the Reid bill.
What we see here is that there is a group of Americans who clearly benefit under the bill from the government subsidy for health insurance.
This group, however, is relatively small – about 7% of Americans.
There is another much larger group of Americans who are seeing their taxes GO UP. This group is not benefiting from the government subsidy.
Also, there is another group of taxpayers who are generally unaffected.
But, JCT tells us that this group may be affected by other tax increases like the cap on FSAs or the individual mandate penalty tax.
The bottom-line is this. My Democratic friends (1) cannot say that all taxpayers receive a tax cut and (2) cannot say that the Reid bill does not raise taxes on middle-income Americans.
JCT tells us differently.
No one can dispute the data.
I yield the floor.
030410
Grassley effort to pay for Medicare legislation rebuffed by Senate Majority
WASHINGTON --- Senators today voted 54 to 45 against an amendment offered by Senator Chuck Grassley to make sure Medicare provisions in a tax-extenders bill are paid for in the federal budget.
“I fought for my amendment to make sure the cost of important Medicare provisions wasn’t added to the federal deficit, but the Majority Leader worked to block it and, unfortunately for taxpayers, he succeeded. As a result, billions more will be spent by Congress without being paid for, even while congressional leaders say they are for pay-as-you-go,” Grassley said. “These extensions in Medicare policy are important to many beneficiaries, and they should be handled in a fiscally responsible way.”
Grassley’s amendment would have applied to a number of Medicare policies which expired at the end of February, including a physician payment adjustment to make sure Medicare beneficiaries can access doctors and exceptions to the cap on physical therapy for Medicare beneficiaries needing additional treatment. Last night, Congress voted to prevent these cuts from taking place for another 30 days, but they will expire again at the end of March. Other provisions, including payment for mental health services, ambulance payments, and improved payments for rural and other hospitals were not temporarily extended.
Beyond the fiscal issues, Grassley said all of these health care items have been managed in an irresponsible way by congressional leaders. “Political games were played at the expense of seniors’ access to physicians and access to medical care for stroke victims and others with debilitating injuries,” he said. “Even mental health counseling for veterans was jeopardized by Congress passing a short-term extension at the end of 2009, and then failing to pass a more responsible extension in February.”
Last month, Grassley offered a bipartisan proposal with Senator Max Baucus to extend a number of expiring tax provisions, along with these Medicare policies. The Senate Majority Leader, Senator Reid, rejected their effort and instead has put forward two partisan proposals, the second of which is much larger in scope. Neither Reid bill has been offset under federal budget rules.
Grassley is the Ranking Member and Baucus is the Chairman of the Senate Committee on Finance, which is responsible for tax and Medicare legislation.
Below is a list of the Medicare and other health-care related provisions included in H.S. 4213, the Tax Extenders bill. The legislative text of Grassley’s amendment is attached. A floor statement by Grassley from this morning’s debate on the amendment follows the list of provisions.
Medicare Part A
Extension of Certain Payment Rules for Long-Term Care Hospital Services and of Moratorium on the Establishment of Certain Hospitals and Facilities. Extends Sections 114 (c) and (d) of the Medicare, Medicaid and SCHIP Extension Act of 2007 by one year.
Extension of the Medicare Rural Hospital Flexibility Program. Extends the authorization for the Flex Grant program through FY2011.
Section 508 Hospital Wage Index Program. Extends hospital reclassifications under section 508 of the Medicare Modernization Act (P.L 108-173) through the end of FY2010.
Technical Correction Related to Critical Access Hospitals (CAHs). Makes a technical correction to clarify that CAHs are eligible to receive 101 percent of reasonable costs for providing outpatient care regardless of eligible billing method the facility uses and for providing qualifying ambulance services.
Medicare Part B
Outpatient Hospital Hold Harmless. Extends the existing hospital outpatient hold harmless provision for small rural hospitals under 100 beds through December 31, 2010. Applies hospital outpatient hold harmless provision to sole community hospitals over 100 beds through December 31, 2010.
Sustainable Growth Rate (SGR) Extension. As of March 1, 2010, the sustainable growth rate update formula requires a 21 percent reduction in physician payments. The provision would delay this payment reduction by 10 months through December 31, 2010, effective as of March 1, 2010.
Extension of Exceptions Process for Medicare Therapy Caps. Current law places annual per beneficiary payment limits for all outpatient therapy services provided by non-hospital providers. The Secretary was required to implement an exceptions process for cases in which the provision of additional therapy services was determined to be medically necessary and this process expired on December 31, 2009. The provision would extend, through December 31, 2010, the therapy caps exception process.
Extension of Physician Fee Schedule Mental Health Add-On. The provision would extend, through December 31, 2010, the 5 percent increase in payments for certain Medicare mental health services that expired on December 31, 2009.
Extension of Ambulance Add-On. The provision would extend, through December 31, 2010, the increased Medicare rates for ambulance services, including in super rural areas that expired on December 31, 2009.
Extension of the 1.0 Floor on the Work Geographic Practice Cost Index (GPCI). The provision would extend, through December 31, 2010, the existing 1.0 floor on the work geographic adjustment that expired on December 31, 2009.
Extension of Payments for the Technical Component of Certain Physician Pathology Services. The provision would extend, through December 31, 2010, the ability of independent laboratories to receive direct payments for the technical component for certain pathology services that expired on December 31, 2009.
Extension of Direct Billing for Indian Health Service Providers. The provision would extend, through December 31, 2010, the authorization for Indian Health Service providers to be directly reimbursed by Medicare Part B.
Accreditation Exemption for Certain Pharmacies that Furnish Durable Medical Equipment. Under current law, suppliers of durable medical equipment, prosthetics, orthotics, and other supplies (DMEPOS) must prove their compliance with quality standards by being accredited. Certain eligible professionals are specifically exempted from the accreditation requirement. The provision would make pharmacies eligible for an exemption from the accreditation requirements under certain circumstances.
Electronic Health Record Clarification. The provision clarifies the health information technology provision in current law that allows non-hospital-based physicians and other health professionals who bill Medicare and Medicaid through a hospital to receive electronic health record incentives.
Reduction in the Medicare Improvement Fund. The Medicare Improvement Fund (MIF) contains funds that are available to the Secretary to make improvements to the original fee-for-service program under Parts A and B of Medicare. Under current law, approximately $20.7 billion is available. The provision reduces the funding available in the MIF by approximately $17.9 billion.
Medicare Part C
Medicare Advantage Changes. The bill extends the authority of certain types of private plans to offer coverage under Medicare Advantage for one year, 2011. Those plan types are special needs plans, cost plans, and senior housing programs. The bill also includes a technical fix for existing employer-sponsored private fee-for-service plans. Finally, it provides $20 million in added funds for State Health Insurance Assistance Programs and similar organizations that assist beneficiaries with Medicare benefits.
Other Health Extenders
Court Improvement Programs. Extends funding for court improvement and handling of court proceedings relating to foster care and adoption programs through FY 2011, originally authorized in the Deficit Reduction Act of 2005.
Family to Family Centers. Extends funding for the development and support of Family to Family Health Information Centers through FY 2011, which helps families of children with disabilities or special health care needs make informed decisions about health care. The policy was first authorized in the Deficit Reduction Act of 2005.
Extends Gainsharing Demonstration for another 21 months. The demonstration was authorized in the Deficit Reduction Act of 2005 and under current law was to end on December 31, 2009.
Floor Statement of Senator Chuck Grassley
Ranking Member of the Committee on Finance
Failure to Enact Medicare Health Extenders Harms Beneficiaries
Wednesday, March 3. 2010
Mr. President, as I stated before, I had worked in early February to put together a bipartisan package with my colleague, Finance Committee Chairman Baucus, to address some time-sensitive matters that need to be considered.
I find it surprising that we are taking up a package this week that, like last week’s exercise, solely belongs to the Senate Democratic Leadership.
We are not taking up the bipartisan package that I put together with Finance Committee Chairman Baucus.
The Senate Democratic Leadership arbitrarily decided to replace the Baucus-Grassley bipartisan bill with one that is dramatically different. Their package is almost three times the size and significantly greater in cost than the bipartisan bill we announced on February 11.
It's unfortunate that the Democratic Leadership failed to ensure that these critically-needed Medicare provisions were extended at the end of last year.
Then they failed to extend the provisions that had expired in 2009 for over two months.
Today, I am offering an amendment that would ensure that the Medicare provisions are fully offset. And my amendment would also extend the physician update through the end of this year.
These provisions are essential to the health and well being of Medicare beneficiaries.
And this is the fiscally responsible way to extend them--by paying for them.
These Medicare provisions have been routinely supported by both sides, fully offset, and passed repeatedly in recent years.
Now it is the 3rd of March.
Medicare beneficiaries around the country are suffering from the Senate Democratic Leader’s decision to abandon the Baucus-Grassley bipartisan package that my colleague and I had worked out weeks ago.
First, there is the urgently needed physician payment update, known as the “doc fix”.
A two-month extension that was passed in December expired on February 28th so, as of March 1st, physicians, nurses, and other health care professionals were subject to severe payment cuts of 21 percent.
Now with the 30-day extension having passed last night, physician payments will be in place until the end of March. But we should not be running Medicare on a month-to-month basis.
These cuts to physician payment cannot be allowed to occur. And as damaging as these would be to beneficiary access to care anywhere, these cuts are even more disastrous for access to care in rural states, like Iowa, where Medicare reimbursement is already at least 30 percent lower than in other areas.
I am appalled that seniors’ access to physicians and needed medical care has been handled this way because of the political games that are being played by the Senate Democratic Leadership.
Should these cuts remain in place, they will have a truly devastating effect on the ability of seniors to find physicians who take Medicare patients.
Many beneficiaries have already been affected by Medicare provisions that the Senate Democratic Leadership allowed to expire last December.
One of the most urgent situations involves limitations that Medicare places on the amount of certain kinds of treatments for beneficiaries.
Medicare places annual limits on the amount of outpatient physical therapy, speech-language pathology therapy and occupational therapy that a beneficiary can receive.
In 2005, the law was changed to provide for an exceptions process to these therapy caps for situations when additional therapy is medically necessary. But that needed protection for beneficiaries expired at the end of 2009.
Medicare beneficiaries who have suffered strokes or serious debilitating injuries, such as a hip fracture, have significant rehabilitation needs. Some have already exceeded the caps for 2010.
Those with the greatest need for therapy will be the hardest hit. Here again, with the 30-day extensions bill having passed last night, this problem has been temporarily fixed.
But this is another case where this Congress is playing political games with Medicare. These should have all been taken care of at the end of last year. And they could already have been resolved even now if the Senate had taken up the original Baucus-Grassley bill.
Other essential provisions include additional payments for mental health services. This benefits Medicare beneficiaries in need of mental health counseling as well as veterans suffering from post-traumatic stress and other disorders since TRICARE is based on Medicare rates.
Another issue concerns additional payments for ambulance services that many ambulance providers need to keep their doors open. Those provisions also expired at the end of last year and they were not extended in the 30-day bill voted on last night.
Another important issue affects community pharmacies. Pharmacies that have not gone through an accreditation process will soon be forced to turn away Medicare beneficiaries.
A provision in my amendment would ensure that beneficiaries who need vital medical supplies like diabetic test strips, canes, nebulizers, and wound care products can continue to have access to these products at local pharmacies.
Many eligible professionals, such as physicians, nurse practitioners, physical therapists, and others have been specifically exempted from this requirement. This provision would also exempt community pharmacies under certain conditions.
A number of other expired provisions are extended in this package. These include improved payments for hospitals, especially rural hospitals that rely on these provisions to keep their doors open. And like many others, these problems were not fixed in the 30-day bill passed last night. These problems still remain.
The impact of a hospital shutting its doors would be especially hard on rural and underserved areas where hospitals offer the only access to health care.
We need to pass this critically-needed and fiscally responsible amendment now. And I urge my colleagues to support it.
I yield the floor.
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Statement by Senator Chuck Grassley
Ranking Member of the Committee on Finance
Regarding the President’s statement today on health care reform
Wednesday, March 3, 2010
“The American health care system is in need of reform. We spend too much on health care, and we don’t get enough value for the dollars we spend. We should undertake reforms that can lower cost and improve quality without jeopardizing our economy by raising taxes or making coverage even more unaffordable with higher premiums.
“The President continues to try to accomplish his agenda by passing a massive health care reform bill. Beyond the fact that the bills continue to be written behind closed doors and include a limited number of Republican ideas, the legislation is so badly flawed that it will take more than token updates to fix them. The bills we’ve seen so far, including what’s being talked about today, increase premiums, make hundreds of billions in unsustainable cuts to Medicare, and create a permanent new entitlement at a time when we most need to focus on getting our economy back on track. The bills use budget gimmicks, including raiding Social Security and double counting in an attempt to claim they reduce the deficit. Nothing the President said today changes those fundamental facts, and some of what he’s now proposing makes these problems even worse. Instead, Congress should focus on the areas where there’s broad agreement. Claims that this means delay misses the point that the American people are opposed to a flawed bill being jammed through and making things worse, not better.
“Democratic leaders have the option of using budget reconciliation to pass their bills. I hope they’ll choose not to use a purely partisan process to pass a bill that would re-organize one-sixth of America’s economy and which doesn’t have the support of a majority of Americans. That would be a mistake.”
TO: Iowa Media
RE: New wind energy study
DA: March 3, 2010
Chuck Grassley released the following comment after learning of a study that shows Iowa’s wind energy production accounts for up to 20 percent of Iowa’s electricity.
Grassley is the author of the wind energy production tax credit, and has worked to see that the credit is extended. He has received numerous awards for his continued leadership in support of the credit.
“Iowa has been a leader in the production of wind energy and is poised for even greater results in the future. This renewable energy source has not only helped power Iowa, but at the same time has created green jobs for Iowans. The wind energy tax credit that I authored has been a tremendous impetus for the state to harness the power of wind for both clean energy and good paying jobs.”
Study: Wind energy keeps Iowa power costs down
By MIKE GLOVER Associated Press Writer, The Associated Press, DES MOINES, Iowa
Wind energy accounts for up to 20 percent of Iowa's total electricity production, and is helping to keep the state's power costs among the lowest in the nation, a study released Wednesday showed.
Authors of the study said it debunks arguments that alternative energy and other measures to combat climate change are too expensive. The study was conducted by the Iowa Policy Project, a nonpartisan, nonprofit research organization based in Iowa City.
"Those people who tell us we can't do anything about global climate change because it will be too expensive are wrong, Iowa is proving it wrong," said David Osterberg, an Iowa Policy Project researcher and one of the authors of the study.
The study found that wind produced 3,670 megawatts of electricity in the state. If that power were used solely within the state it would produce enough electricity to power 940,000 homes _ roughly three-quarters of the state's homes.
The study noted that MidAmerican Energy is one of the most aggressive utility companies in the nation on wind energy, securing approval in December to install another 1,001 megawatts of production.
Iowa continues to rank second to Texas in wind production in the United States, the study found.
The authors pointed to research from the National Renewable Energy Laboratory showing that roughly three-quarters of Iowa has high enough wind at 80 meters above the ground to produce wind energy.
"Thus, even as Iowa is leading the way in harnessing wind energy, there is significant room to increase our use of the wind's renewable power," the study said.
"America need not fear taking strong steps to address climate change, new estimates of Iowa wind production and production potential show this," said Teresa Galluzzo, another author of the study.
Coal-fired plants produce about 75 percent of the state's electricity, and there is one nuclear plant in the state.
In examining electricity costs, the study found that Iowans paid about 6 cents per kilowatt hour in 1998. That climbed to 7 cents per kilowatt hour by 2008. Over the same time period, national average electricity costs went from 7 cents per kilowatt hour to nearly 10 cents.
"Amidst Iowa's massive expansion of wind power, our average electricity prices have remained below the national average and in fact have not increased as quickly as the national average price in the last four years," the study said.
The study said MidAmerican is the national leader in wind generation by rate-regulated utilities, with 1,393 megawatts either in operation or under construction. That's in addition to the 1,001 megawatts of capacity approved in December. The study said Iowa is the seventh windiest state in the nation.
One shortfall the study found was determining how much of the electricity produced in the state is actually consumed within its borders. When power is shipped into the electrical grid it is pooled together and it's difficult to determine which portion of the power comes from which source.
$535,451 to Eleven Iowa Fire Departments from FEMA
WASHINGTON – Senator Chuck Grassley said that the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) has awarded competitive grants totaling $535,451 to Iowa fire departments through the Assistance to Firefighters Grants Operations and Safety Program.
“Day in and day out, firefighters put their lives on the line for the good of the community,” Grassley said. “It’s important that firefighters have the necessary equipment and training to help keep the community safe.”
FEMA will distribute the money as shown below ordered alphabetically by town.
Through the Operations and Safety Program:
· Andover Volunteer Fire Department in Andover will receive $11,507.
· Frankville Fire Department in Postville will receive $4,167.
· Fruitland Fire Department in Fruitland will receive $75,639.
· Hampton Fire Department in Hampton will receive $38,974.
· Janesville Fire Rescue in Janesville will receive $37,644.
· Leon Volunteer Fire and Rescue Department in Leon will receive $34,902.
· Lincoln Volunteer Fire Department in Lincoln will receive $60,143.
· Low Moor Volunteer Fire Department in Low Moor will receive $102,642.
· Monona Fire Department in Monona will receive $69,825.
· Percival Fire Department in Percival will receive $67,256.
· Van Horne Firemans Association in Van Horne will receive $32,752.
The Assistance to Firefighters Grants Operations and Safety Program supplements training, equipment, personal protective equipment, wellness and fitness, and health and safety modifications to stations and facilities.
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More Than $2.3 Million to Iowa Airports
WASHINGTON – Senator Chuck Grassley announced today that the U.S. Department of Transportation’s Federal Aviation Administration has awarded six competitive grants totaling $2,324,931 to Iowa airports.
“This funding will help improve safety and service at Iowa’s local airports and help provide economic development opportunities for the communities,” Grassley said.
The Federal Aviation Administration has awarded funds to facilitate various airport improvement projects, as described below.
* Des Moines receives $1,520,000 to help upgrade the Automated Access Control System at Des Moines International Airport.
* Grinnell receives $76,000 to help prepare a Master Plan and Airport Layout Plan to plan airport development at Grinnell Regional Airport.
* Hampton receives $72,946 to help construct T-hangar buildings at Hampton Municipal Airport.
* Iowa Department of Transportation receives $95,000 to help conduct a study inspecting the pavement condition at 24 airports to establish and maintain a pavement maintenance and management program. The study will be conducted at the following airports: Atlantic, Audubon, Boone, Carroll, Centerville, Clarion, Decorah, Fairfield, Fort Madison, Guthrie County, Hampton, Iowa Falls, Keokuk, Mapleton, Maquoketa, Monticello, Mt. Pleasant, Muscatine, Perry, Rockwell, Shenandoah, Vinton, West Union and Winterset.
* Sioux City receives $394,969 to help install guidance signs to improve safety and efficiency of aircraft movement at Sioux Gateway Airport/ Col. Bud Day Field.
* Southeast Iowa Regional Airport Authority in Burlington receives $166,016 to help rehabilitate a T-hangar taxiway at Southeast Iowa Regional Airport.
Each year, thousands of local Iowa organizations, colleges and universities, individuals and state agencies apply for competitive grants from the federal government. The funding is then awarded based on each local organization or individual’s ability to meet criteria set by the federal entity.
Disaster Aid to Iowa after Severe Winter Storms
WASHINGTON – Chuck Grassley today said President Barack Obama declared a major disaster declaration for Iowa, triggering the release of FEMA funds to help Iowa recover from the severe winter storms that occurred on January 19 - 26. Additional designations may be made at a later date after further evaluation.
“There has been an enormous amount of damage in Iowa caused by winter storms,” Grassley said. “It’s good to see this disaster being addressed by President Obama so Iowans can continue cleaning up the damage.”
FEMA will provide assistance to Adair, Audubon, Calhoun, Carroll, Cass, Crawford, Guthrie, Harrison, Madison, Pottawattamie, Sac and Shelby counties through the Public Assistance program. The Public Assistance program assists state and local governments and certain private nonprofit organizations for emergency work and the repair or replacement of disaster-damaged facilities.
All Iowa counties are also eligible to apply for assistance through the Hazard Mitigation Grant program. The Hazard Mitigation Grant program assists state and local governments and certain private non-profit organizations for actions taken to prevent or reduce long-term risk to life and property from natural hazards.
Grassley sent a letter to Obama asking him to grant Governor Chet Culver’s request to declare Iowa a major disaster area as a result of the severe winter storms that occurred on January 19 - 26.
030210
Disaster Aid to Iowa after Severe Winter Snowstorm
WASHINGTON – Senator Chuck Grassley today said President Barack Obama declared a major disaster declaration for Iowa, triggering the release of FEMA funds to help Iowa recover from the severe winter storm and snowstorm that occurred on December 23 - 27. Additional designations may be made at a later date after further evaluation.
“Winter weather hit Iowa extremely hard and caused an enormous amount of damage,” Grassley said. “It’s good to see this disaster being addressed by President Obama so Iowans can continue cleaning up the damage.”
FEMA will provide assistance to Adair, Audubon, Calhoun, Carroll, Cass, Cherokee, Clay, Crawford, Emmet, Franklin, Fremont, Guthrie, Harrison, Ida, Monona, Page, Pottawattamie, Sac, Shelby, Sioux and Woodbury counties through the Public Assistance program. The Public Assistance program assists state and local governments and certain private nonprofit organizations for emergency work and the repair or replacement of disaster-damaged facilities.
FEMA will also provide snow assistance for emergency protective measures for a 48-hour period for Cherokee, Clay, Emmet, Fremont, Harrison, Ida, Page, Pottawattamie, Sioux and Woodbury counties.
All Iowa counties are also eligible to apply for assistance through the Hazard Mitigation Grant program. The Hazard Mitigation Grant program assists state and local governments and certain private non-profit organizations for actions taken to prevent or reduce long-term risk to life and property from natural hazards.
Grassley sent a letter to Obama asking him to grant Governor Chet Culver’s request to declare Iowa a major disaster area as a result of the severe winter storm and snowstorm that occurred on December 23 - 27.
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