With the national unemployment rate consistently hovering around 10%, and all but acknowledging his economic policies enacted thus far have failed, President Barack Obama has proposed a new “jobs” initiative. Earlier this week, Obama made announcements outlining his latest stimulus plan.

The proposals seek to spend $50 billion on transportation infrastructure to repair roads, railways, runways and modernize the FAA air traffic control system, permanently extend the federal research and development tax credit, and permit businesses to deduct immediately 100% of any new investments they make from now through 2011. Typically, the federal research and development tax credit is extended by Congress on an annual basis and currently businesses are able to deduct capital purchases over a period of three years or 20 years, depending on the investment classification.

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On Thursday, September 2nd, the Department of Iowa Workforce Development announced Iowa’s unemployment trust fund is again in trouble, which means taxes on employers will increase to ensure its solvency and cover unemployment benefit payments.

On January 1, 2010, the mandatory unemployment trust fund contribution rates paid by Iowa employers increased for the first time in eight years. Not even a year later, employers are being told they will again have to open up their checkbooks, because on January 1, 2011, unemployment taxes are scheduled to rise. The increase is a result of the poor economic conditions in Iowa, the driving force behind record high unemployment and unemployment compensation claims.

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On August 10, 2010, the United States House of Representatives approved legislation to increase taxes on U.S. multinational companies by $9.7 billion, in order to help finance a $26 billion spending package that will soon pour dollars into state coffers to be used for Medicaid programs and teacher salaries. Cash strapped states, the National Education Association and the American Federation of Teachers lobbied heavily for the funding. Shortly after Senate passage last week, the House voted to approve H.R. 1586 by a vote of 247-161, the bill was subsequently signed into law that day by President Obama.

Read on for a breakdown of the bill…

Yesterday, Gov. Culver admitted that throughout his term as governor he has made mistakes.

“I appreciate Gov. Culver’s willingness to admit mistakes, we’ve all made some,” said House Republican Leader Kraig Paulsen (R-Hiawatha). “But he’s yet to acknowledge one of his biggest mistakes, increasing Iowans property taxes.”

Paulsen notes that the governor knowingly spent too much money in fiscal year 2010 which lead him to recklessly make a 10 percent across the board cut. Due to that mistake, property taxpayers were forced to pick up the tab to the tune of a $526.9 million increase.

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Yesterday Gov. Chet Culver committed the property taxpayer to another round of tax increases. He promised a 4 percent increase for fiscal year 2012 in allowable growth, the state aid provided to Iowa’s schools. According to the non-partisan Legislative Services Agency, Culver’s pledge would be roughly a $338 million increase in school spending authority. At a minimum, current law says $40 million would fall on the property tax payer.

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As many states struggle with unbalanced budgets, state lawmakers throughout the country are looking for ways to raise revenue rather than reduce wasteful government spending. One idea that several states are considering is imposing hefty taxes on soda, teas, sports drinks and other beverages. In the past year alone, 17 states and several cities have proposed taxing soft drinks.

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Iowans who filed their 2009 tax returns by mailing in the paper form have noticed something different this year, it’s been a month since the filing deadline and they have yet to receive their refund. Accordingly, many taxpayers have contacted the Department of Revenue to obtain confirmation their tax return has at least been received and that their refund is in the mail. Unfortunately, unless the return has been manually entered into the system, there is not a way to receive such confirmation. As you can imagine it is causing heartburn in households around the state.

Concerned Iowans are turning to their state legislators with several questions. “Since my return has not been officially received by the Department will I be penalized?” The answer: No, as long as your tax return is postmarked by April 30, 2010 you will not be penalized. And, “where is my refund?” The answer: It’s on it’s way, but it’s been delayed.

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From Republican Leader Kraig Paulsen:

State Auditor David Vaudt recently completed an audit of next year’s budget passed by the Democrat majority and now being signed by Governor Culver. This budget will take effect on July 1, 2010. After studying the budget and spending, the auditor is coming to some of the same conclusions that House Republicans made during the session: the budget spent too much, saved too little and raised property taxes.

In his report the auditor has five major concerns with the budget.

Click to read the concerns…

Iowa school districts have a $40 million special education deficit.

Here’s why the issue needs a closer look:

• Iowa’s school aid formula already generates $380 million in state aid and property taxes to pay for special education. The $40 million deficit that automatically raises property taxes is what districts spent above and beyond the $380 million.
• Up until 2008, the deficit hovered around $20 million. In 2008 it jumped to $31 million and in 2009 to $40 million.

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As the House adjourned the 2nd session of the 83rd General Assembly, the House Republican Research Staff put together an end of session wrap-up of notable bills in all committees.

2010 End of Session Wrap-up