FOR IMMEDIATE RELEASE: Thursday, July 09, 2009

Contact: Josie Klingaman (515) 419-1038

Democrats Made Calculated Decision to Tax Iowans

(DES MOINES)—Today House Republican Leader Kraig Paulsen (R-Hiawatha) called the governor’s failure to couple Iowa tax laws with federal tax law changes and allow disaster victims, students, and teachers to keep their full tax return a calculated decision, not an accident.

In February, the governor’s office received a memo from the Department of Revenue outlining federal tax changes and how they would affect Iowans’ tax bills. The governor and legislative Democrats knew in February that a failure to couple with the changes meant Iowans could not deduct disaster losses, college tuition and fees, or educator expenses from their Iowa returns.

In March, Republicans on the House Ways and Means Committee tried to force the committee to bring up the legislation dealing with the tax changes. Unfortunately for Iowans, all the House Democrats on the committee voted against the bill to allow disaster victims to fully deduct net disaster losses.

Additionally, House Republicans repeatedly requested debate on the House floor on this important issue.

“The governor is acting like this was an accident or an oversight. That is not what happened,” said House Republican Leader Kraig Paulsen. “The governor and Legislative Democrats made a calculated decision to not couple with federal law and force Iowans to payback tax returns because they needed the money for their spending plans. House Republicans stand ready to correct this error.”

It has been at least 20 years since the Legislature failed to pass a bill that couples with the federal tax changes. Even in 2000 and 2001, when the state was facing similar economic hardships, the Legislature still coupled with the federal changes.

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FOR IMMEDIATE RELEASE: Wednesday, July 1, 2009
Contact: Josie Klingaman (515) 419-1038

Paulsen Issues Statement on New Revenue Numbers

(DES MOINES)—House Republican Leader Kraig Paulsen (R-Hiawatha) released a statement today regarding the nonpartisan Fiscal Services Agency’s monthly review of the state’s revenue:

“Democrats passed the largest amount of spending in the state’s history, so we shouldn’t be surprised that we’re in this budget mess. House Republican efforts to save over $300 million in cost savings and spark job growth were thwarted by legislative Democrats. The bottom line remains the same: Gov. Culver spent too much and cut too little. House Republicans will continue to look for ways to rebuild Iowa’s economy through hard-working Iowans not big government.”

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To see the full document from the non-partisan Legislative Services Agency click here
http://www.legis.state.ia.us/lsadocs/MonMemo/2009/MMJWR003.PDF

FOR IMMEDIATE RELEASE: Wednesday, July 1, 2009

Contact: Josie Klingaman (515) 419-1038

Paulsen Reacts to State Employee Raises

(DES MOINES)—Today House Republican Leader Kraig Paulsen (R-Hiawatha) reacted to news that, despite taking a pay “freeze,” some state employees will actually see up to a 9 percent increase in salary and benefits.

In addition to the merit and step raises that state employees will see this new fiscal year, they will also receive an increase in deferred compensation benefits as well as insurance premiums. These benefits add up to an $886,000 and $474,000 increase respectively.

“At a time when the government’s current budget is out of balance and next year’s budget is facing a billion dollar hole, it’s irresponsible to be handing out salary increases and benefits,” said Paulsen. “While private sector employees are dealing with layoffs, furloughs, and higher health insurance premiums, state government is actually doing the opposite. Only in government does a pay freeze cost the taxpayers over $120 million.”

Today marks the first day of the 2010 fiscal year.

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