Governor Terry Branstad released details from his 2011 tax return late last week. His income was down considerably from 2010 to a little more than $190,000. That’s still nearly four times the median household income in Iowa and puts Branstad in the top 5 percent of Iowa households by income level. The bulk of his income came from the salary for being governor ($116,131) and pension payments from his previous service in state government ($52,954).

Branstad’s tax bill was a bit of a head-scratcher: $17,777 in net federal taxes but only $52 in state taxes for 2011. Most Iowans pay way more than $52 in state taxes on income way below $190,000. Even more surprising, last year Branstad received a $369 refund on his state tax return despite reporting $313,663 in adjusted gross income during 2010.

The governor’s tax bill illustrates the inequities in Iowa’s tax code and the need for a more effective alternative minimum tax.

The U.S. House approved a bill yesterday to cut taxes by 20 percent for one year for companies with fewer than 500 employees. All the Iowans present voted for the legislation: Republicans Tom Latham (IA-04) and Steve King (IA-05) and Democrats Dave Loebsack (IA-02) and Leonard Boswell (IA-03). Bruce Braley (IA-01) was absent. His staff have not responded to my request for comment on how he would have voted.

The roll call shows that only 18 House Democrats supported this bill. Once again, Progressive Caucus member Loebsack joined Republicans and a small group of primarily Blue Dog Democrats. Bleeding Heartland has discussed this pattern in the context of Loebsack’s votes for a balanced budget constitutional amendment, to block non-existent EPA regulations on farm dust, to make it more difficult for the federal government to regulate small business, and to extend a pay freeze for mostly middle-class federal workers.

After the jump I enclose a statement from King and more details on the Congressional debate over small business tax cuts.

Federal income taxes are due today for most Americans, unless you’ve filed for an extension like Mitt Romney. (What was he thinking?)

This thread is for any comments related to tax policy at any level of government. Follow me after the jump for links to news, facts and figures about taxes.

UPDATE: Added statements from Representatives Steve King, Dave Loebsack, and Leonard Boswell below. Loebsack and Boswell reference “equal pay day” rather than “tax day.”

This afternoon U.S. Senate Republicans blocked a bill to impose a minimum tax rate of 30 percent on taxpayers who collect at least $1 million in income. The motion received 51 votes in favor and only 45 against, but in the convoluted world of Senate procedure, Democrats needed 60 votes to approve a “motion to invoke cloture on the motion to proceed to consider” the bill. All but one Democrat voted for cloture, while all but one Republican voted against. Iowa’s Tom Harkin and Chuck Grassley split on party lines. Neither has issued a statement on today’s vote, but after the jump I’ve posted an excerpt from the “Q&A on taxes” in Grassley’s latest e-mail newsletter to constituents.

President Barack Obama and Senate Democrats plan to flog the “Buffett rule” repeatedly throughout the election year. A few samples of the preferred talking points on both sides are below, just after the Grassley commentary.

Left unsaid: we wouldn’t be having this debate if Congressional Democrats and/or the president had refused to extend the Bush tax cuts for the top income brackets in late 2010 (as most of them had promised to do during the Bush presidency).

President Barack Obama’s re-election campaign accuses Republican front-runner Mitt Romney of standing with Big Oil in a new television commercial running in Iowa, Colorado, Florida, Nevada, Ohio, and Virginia. The video and transcript of the Obama campaign’s second ad in Iowa are after the jump. It’s a direct response to an anti-Obama spot about high gasoline prices, which is now running in Iowa and other swing states.

The Obama campaign’s first television commercial in Iowa and other swing states focused on energy policy and criticized the “secretive oil billionaires attacking President Obama.”  

Groups opposing and supporting President Barack Obama’s re-election are making high gas prices the focal point of new television commercials in Iowa and other swing states. Videos and transcripts of the latest ads by the American Energy Alliance and Priorities USA are after the jump.

Last week Obama urged Congress to end tax breaks for oil companies, citing the industry’s high profits. U.S. Senate Republicans filibustered a bill that would have ended several deductions for five major oil companies and extended various renewable energy tax incentives. Senator Tom Harkin voted to move forward with that bill, but Senator Chuck Grassley voted to block it, as he did with similar legislation in May 2011.

Most bills that lack bipartisan support in the U.S. Senate die by filibuster, but senators voted overwhelmingly yesterday to move forward with debate on a bill that would end tax breaks for oil companies.  

In a step forward for small-scale wind power in Iowa, the Iowa Utilities Board designated Johnson County and Floyd County as our state’s first Small Wind Innovation Zones last week.

The Iowa legislature’s second “funnel” deadline passed on Friday, which means that most non-appropriations bills are dead unless they have been approved in one chamber and in at least one committee in the other chamber. It’s time to catch up on the most significant bills being debated in the Iowa House and Senate.

The U.S. Senate approved a new transportation authorization bill on March 14. Iowa’s senators Chuck Grassley and Tom Harkin were both part of the 74 to 22 majority supporting the highway bill, officially called MAP-21. Republicans cast all of the no votes. In today’s polarized Senate, 74 votes looks like an overwhelming mandate, but it’s worth noting that even larger bipartisan majorities approved the four previous transportation authorization bills from 1987, 1991, 1998, and 2005.

Before final passage of MAP-21, senators voted on numerous amendments. Some were related to transportation policy, while other “non-germane” proposals were considered as part of a deal to avoid a Republican filibuster. Bleeding Heartland covered how Grassley and Harkin voted on the first batch of amendments here. Follow me after the jump for details on the rest of the Senate debate over the transportation bill. Iowa’s senators were on opposite sides most of the time.

Iowa is one of five states to receive a failing grade in the U.S. Public Interest Research Group Education Fund’s new report, Following the Money 2012: How the 50 States Rate in Providing Online Access to Government Spending Data. The full report is here (pdf). I’ve posted highlights and excerpts after the jump.

Two-term Democratic State Senator Tom Rielly announced today that he will not seek re-election in the new Iowa Senate district 40. That seat was arguably the Senate Republicans’ best pickup opportunity even before Rielly confirmed his retirement plans.  

NOTE: On March 12, Democrat Shelley Parbs announced her candidacy in this district, and a third Democrat, Nick Volk, filed nominating papers on March 15.

Iowa Senate Democrats finally announced their challenger to first-term Republican Tim Kapucian last week, setting up a potentially competitive race in the new Iowa Senate district 38.

Christie Vilsack toured Iowa’s new fourth Congressional district late last week to roll out an energy plan “geared towards bringing a new prosperity to Iowa’s small cities and rural communities by creating layers of economic opportunity.”

The five-point plan is more of a political statement than a detailed policy document. Like some of Vilsack’s previous proposals, it embraces some Republican talking points.

Upon closer examination, the energy plan looks like two parts bipartisan no-brainers, two parts conservative buzzwords, and one part fairy dust.

The Des Moines Register’s latest statewide poll conducted by Selzer & Co included more than a dozen questions about issues Iowa legislators are considering this session. Proposals to raise the gasoline tax and allow a large utility company to bill its customers up front for a nuclear power plant were among the most unpopular ideas polled.

The list of potentially competitive Iowa House districts without a Democratic candidate shrank yesterday when the chair of the Muscatine Community College Business Department, John Dabeet, announced that he’ll stand in the new Iowa House district 91.

Both houses of Congress approved a deal today to extend a payroll tax cut through the end of this year. It was only the second time I can remember that Senator Tom Harkin and Representative Steve King (IA-05) voted against a bill that the rest of Iowa’s Congressional delegation supported.

President Barack Obama released his draft budget for the 2013 fiscal year yesterday. Details on the president’s proposed spending and tax rates are after the jump, along with reaction from the Iowans in Congress and some of their challengers.  

Yesterday the U.S. House approved a bill to require additional Congressional Budget Office analysis on legislation with a large price tag. The concept is intended to reduce the apparent cost of tax cuts to the federal budget. Iowa’s representatives split on party lines over this bill and proposed amendments, including one offered by Democrat Leonard Boswell (IA-03).

Candidates love to empathize with struggling middle-class Americans, but middle-income government employees are an easy target for politicians trying to earn their deficit warrior stripes. Today more than a third of U.S. House Democrats voted with nearly all the House Republicans to keep most civilian federal employees’ salaries frozen through 2013. All five Iowans voted for the legislation, even though Democrats Bruce Braley (IA-01), Dave Loebsack (IA-02), and Leonard Boswell (IA-03) have repeatedly said they oppose balancing the budget on the backs of the middle class.

Iowa Senate Ways and Means Committee Chair Joe Bolkcom took to the Senate floor today with a clear message for Iowa House Republicans and Governor Terry Branstad: “no tax cut will pass the Senate Ways and Means Committee” until an expansion of Iowa’s earned income tax credit has been signed into law.

MARCH 16 UPDATE: Rasmussen did not file for re-election. The Republican candidate in this district is Jim Givant; Bleeding Heartland will cover his campaign in a future post.

Iowa’s new map of political boundaries created a large number of competitive House and Senate districts in the northeast part of the state. Yesterday Democrat Bruce Bearinger announced his candidacy in the new House district 64, now represented by Republican Dan Rasmussen. A district map and background on both candidates are after the jump.

President Barack Obama is making economic fairness a central theme of tonight’s State of the Union address. To bolster his proposals to increase tax rates on some forms of unearned income, billionaire investor Warren Buffett’s secretary will be one of First Lady Michelle Obama’s guests. A few excerpts from the prepared speech are after the jump, along with some White House “talking points” for allies. I’ll update this post later.

This thread is for any comments about the president’s speech or the Republican response, to be delivered by Indiana Governor Mitch Daniels.

UPDATE: Added the text of Daniels’ response below, along with some thoughts about the president’s speech and reaction from members of Iowa’s Congressional delegation.

This morning former Massachusetts Governor Mitt Romney’s presidential campaign released Romney’s 2010 tax return and some details on the “unemployed” candidate’s 2011 income. Some links and analysis are after the jump.

Last week the Des Moines-based Child & Family Policy Center released “Iowa Kids Count 2010: Trends in the Well-Being of Iowa Children.” Highlights from the report are after the jump. While several indicators showed improvement in children’s health between 2000 and 2010, the economic circumstances of Iowa children and families deteriorated significantly.

Iowa’s well-documented problems with roads in disrepair and deficient bridges have prompted many calls for raising the gasoline tax in recent years. I’ve been skeptical that a divided state legislature would agree to raise an unpopular tax during an election year-session following redistricting. However, key lawmakers continue to insist that a gas tax hike is on the table. Arguments for why this proposal will and won’t pass are after the jump.

Governor Terry Branstad delivers his “Condition of the State” address to the Iowa House and Senate this morning. Iowa Public Television will livestream the speech here, and I’ll update this post later with highlights. The governor’s commercial property tax reform plan will be a centerpiece of the address. As part of that plan, Branstad indicated yesterday that he will seek unprecedented limits on local government taxing authority in Iowa.

UPDATE: A few details from the governor’s proposed budget are now below, along with some reaction from Democratic lawmakers. Branstad is asking for a significant spending increase in the 2013 fiscal year.

Leaders representing both parties in the Iowa House and Senate outlined their priorities in their opening remarks to this 2012 legislative session. Even the Republicans said next to nothing about social issues such as abortion, same-sex marriage or promoting religious education.

The Iowa legislature’s 2012 session begins today with several major policy reforms on the agenda. Making progress on even one of those issues would be daunting under any circumstances, but particularly during an election year when different parties control the Iowa House and Senate. Lots of links are after the jump.

The Bureau of Labor Statistics released new employment figures yesterday, showing nonfarm payroll employment up by 200,000 in December 2011, and the unemployment rate down slightly to 8.5 percent. Several members of Congress from Iowa cited the news a Their statements are after the jump.

I’ve also enclosed reaction from U.S. Senators Chuck Grassley and Tom Harkin to President Barack Obama’s recess appointments of Richard Cordray to head the Consumer Financial Protection Bureau and three members of the National Labor Relations Board. While Harkin welcomed Cordray’s appointment, Grassley slammed the president for “upending years of Senate practice and legal precedent.” Grassley was among Senate Republicans who filibustered Cordray’s confirmation last month.

Let’s review the most boneheaded moves from the year in Iowa politics.

This thread is not about wrongheaded policy choices. It may be stupid to cut early childhood education programs, kneecap the state Environmental Protection Commission, or pass an “ag gag” bill that would never survive a court challenge. Yet all of those actions carry potential political benefits, since they appeal to well-funded interest groups or a large group of voters.

My top ten list of Iowa politicians’ mistakes is after the jump.

It’s the most list-making time of the year. Let’s start talking about Iowa political highlights of 2011.

This thread is devoted to master strokes. I don’t mean our elected officials’ wisest actions, or the policy choices that affected the greatest number of Iowans. I mean acts of such skill that even opponents had to grudgingly acknowledge their brilliance.

My top picks are after the jump. Tomorrow Bleeding Heartland will review the year’s most bewildering acts of incompetence. On Thursday we’ll look at the events that are likely to have the greatest long-term impact on Iowa politics.

U.S. House Speaker John Boehner agreed today to support a two-month extension of the payroll tax cut while House and Senate members negotiate legislation to keep the tax cut throughout 2012. Follow me after the jump for details on Boehner’s deal and early reaction from Iowans in Congress.  

The payroll tax cut, extended unemployment benefits, and a “doc fix” affecting Medicare reimbursements look more likely to expire on December 31 after today’s votes in the U.S. House. Republicans voted to go to conference to resolve differences between their approach to extending the payroll tax cut and the bill the U.S. Senate approved on Saturday.  However, Democrats don’t plan to appoint anyone to the conference committee.

Details on today’s votes and reaction from members of Iowa’s House delegation are after the jump.

Both Republican Chuck Grassley and Democrat Tom Harkin voted Saturday morning for a two-month extension of the payroll tax cut and unemployment benefits.

Only ten Democrats in the U.S. House supported a bill approved last night to extend the payroll tax cut and some unemployment benefits. All three Iowa Democrats crossed party lines to vote for this legislation, which has drawn a rare veto threat from the White House.

UPDATE: Scroll down for Representative Dave Loebsack’s statement on this vote.

SECOND UPDATE: I’ve added a statement from Representative Steve King.

Christie Vilsack plans to make Representative Steve King defend his record on disaster relief funding during next year’s campaign in Iowa’s fourth Congressional district, she indicated during a recent interview with the Omaha World-Herald.

A year ago, former President George W. Bush’s income tax cuts for all brackets were due to expire on December 31. Republicans had President Barack Obama and Congressional Democrats on the defensive, not wanting to be seen as raising taxes in a tough economy. Now the tables are turned as a payroll tax cut benefiting all wage earners will expire at the end of the year unless Congress acts otherwise. Democrats in Washington and around the country see this issue as a political winner.

Last week the U.S. Senate defeated two more proposals for extending the payroll tax cut. Meanwhile, the Democratic Congressional Campaign Committee and the Iowa Democratic Party used the controversy to create bad publicity for Representative Tom Latham (IA-04) and Representative Steve King (IA-05).

Without Congressional action, a temporary payroll tax cut intended to stimulate the economy will expire on December 31 of this year. Last week the Senate defeated two proposals to extend the tax cut; Iowa Senators Chuck Grassley and Tom Harkin were on opposite sides of both votes.

While former Massachusetts Governor Mitt Romney campaigned in Des Moines last week, Representative Leonard Boswell publicly criticized the Republican presidential front-runner for the second time this month. The eight-term Democrat authored a guest column in the November 16 Des Moines Register criticizing Romney’s position on health care for veterans. His latest attack focused more broadly on Romney’s position on taxes and entitlement programs.