WASHINGTON - Senator Chuck Grassley said today four young Iowans have received appointments to the United States Military Academy at West Point for the 2013-2014 school year.  The students are:

·         Adam Bradley of Dubuque, son of Joan and Pat Bradley. Adam will graduate in May from Wahlert Catholic High School where he is a member of the National Honor Society and a Student Ambassador.  He also participated in Step-Up Club, Interact Club, Spanish Club, the Fellowship of Christian Athletes, football, tennis, and Show and Chamber Choir.  He is in Thespian Troupe #3842 and on the Dubuque Area Youth Leadership Council.

·         Brett Morales of Davenport, son of Sandra and Mark Nissen. Brett will graduate in June from West High School where he is a Junior ROTC student.  He also participated in cross country, rifle and marksmanship, and track and field.  While a student in Baumholder, Germany, Brett participated in the International Student Leadership Institute.

·         Patrick Mullin of Cedar Rapids, son of Sharon and David Mullin. Patrick will graduate in May from Xavier High School where he is on the Principal Advisory Team and a member of the Student Senate, Key Club, Marching and Concert Band, Science Club, and Spanish Club.  He participated in football, basketball, and track.  Patrick also is active in Youth Leadership for Five Seasons, the National Council on Youth Leadership, Students Against Destructive Decisions (SADD), the International Round Table, and the Iowa Association of Student Councils.

·         Wilson Pingrey of Coon Rapids, son of Julie and Kenneth Pingrey. Wilson will graduate in May from Coon Rapids-Bayard Junior-Senior High School where he is a member of the National Honor Society, the Student Advisory Council, the Mentoring Program, Chorus, and Spanish Club.  He participated in American Legion Boys State and is a class officer.  Wilson also participated in Mock Trial, Olympic Weightlifting, football, trapshooting, and swimming.

Already this year, Orion Boylston of Ames and Matthew Lee and Jackson Peplow of Iowa City were selected by the United States Naval Academy for fall admission.

All of these students were among the Iowans Grassley nominated this year for appointments to the U.S. service academies.  Information about seeking nominations is posted at http://grassley.senate.gov/info/academy_nominations.cfm.

For more than 200 years, these academies have educated and trained individuals to lead and command the U.S. armed forces.

Health Law "Taxes" the IRS

by U.S. Senator Chuck Grassley

The highest court in the land issued a landmark decision just days before the United States celebrated its 236th anniversary declaring independence from a tax-happy monarchy.  I respect the Supreme Court, but the colonial patriots who rallied against "taxation without representation" and blazed the trail for liberty, freedom and the pursuit of happiness must have rolled over in their graves on the eve of Independence Day 2012.

The 5-4 ruling upholding the 2010 health care law essentially gives Congress a license to use its taxing authority to regulate and direct the public in infinite scenarios as a means to an end.  Writing for the majority, Chief Justice Roberts threaded a legal needle, massaging the federal law to solve a Constitutional conundrum.

As the Chief Justice wrote in his 59-page opinion, "...the requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax."  Using this logic and Congress' track record for inflating the tax code, it is undoubtedly reasonable that the long arm of the law will be reaching deeper into the public's pocketbooks to steer and regulate citizens' behavior.

Notwithstanding the considerable issues of individual liberty, freedom of religion and free enterprise, the ruling triggers all kinds of administrative nightmares.  By any measure, the Internal Revenue Service already has its hands full administering an exceedingly complex federal tax code.

The IRS handles over 145 million individual tax returns annually and its workforce is under increasing pressure to thwart identity theft, close the tax gap, and balance customer service with efforts to track down tax cheats.

The IRS has enough on its plate to properly and effectively carry out its primary mission:  enforcement of the nation's revenue laws.  That's why during Senate debate on the health care law I raised concerns about giving the IRS more responsibility than it could chew.

Just consider a recent report that reveals a surge in identity theft (450,000 cases) and high-dollar refundable credits fraud.  The IRS faced unprecedented backlogs during the past tax season as the agency worked to keep up with the jump in fraudulent schemes.  Its fraud detection system identified more than one million returns as potentially fraudulent.

As a member of the tax-writing Senate Finance Committee, I have worked to try to make the IRS an accountable tax collection agency.  From championing taxpayer service to strengthening transparency through my advocacy of whistleblowers and the independent taxpayer advocate, I have worked through legislative and oversight channels to help the IRS better do its job for the honest taxpaying public.  The big spenders in Washington tirelessly seek to increase the IRS budget, angling for billion dollar increases.  The tiresome argument undoubtedly will be re-charged now that the IRS has been charged with administering a slew of new tax laws included in the 2010 health care law, including the individual health insurance mandate, the employer free-rider penalty, the premium subsidy for low-income individuals and the small business tax credits.

Consider the "unprecedented" backlog this tax season as just the tip of the iceberg.  Imagine the dysfunction once the IRS starts to sort through millions of returns claiming refundable insurance premium tax credits, verifying income information for the new government insurance exchanges, calculating and collecting excise taxes and assessing the individual mandate tax.

Speaking from three decades of experience as a taxpayer watchdog, my crusade to root out waste, fraud and abuse tells me the IRS hasn't seen anything yet.

Assigning the administration of social welfare programs to IRS is misguided policy.  Unless, of course, centralizing health care, growing new layers of government and putting federal bureaucrats in charge of one-fifth of the nation's economy are underlying goals of 2010 health care law.  The partisan overhaul was an overreach that missed an opportunity to enact important reforms to the health care system that have broad-based support.

The IRS certainly has its work cut out to try and connect the dots and collect the mandate "tax," distribute premium subsidies, administer health insurance coverage and keep on top of its core mission of collecting taxes.

Voters who disagree with the Supreme Court's ruling need to take Justice Roberts' advice. He noted the nine justices on the court "possess neither the expertise nor the prerogative to make policy judgments.  Those decisions are entrusted to our Nation's elected leaders, who can be thrown out of office if the people disagree with them.  It is not our job to protect the people from the consequences of their political choices."

Justice Roberts essentially pitched the ball back to the court of public opinion for the electorate to decide in November if the Supreme Court hit a home run or struck out by upholding the health care law.

with U.S. Senator Chuck Grassley

Q:        What is so important about this congressional investigation?

A:        When a person dies in service to his country, and his own government may have contributed to his death, covered up evidence about the circumstances, or both, the survivors' families and the American people have a right to know the truth.  In December 2010, Customs and Border Patrol Agent Brian Terry was murdered and two of the weapons found at the scene were linked to Operation Fast and Furious, a gun-walking operation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  Since then, despite numerous requests from Congress - made in letters, meetings and hearings and by subpoena - the Department of Justice, which is in charge of the ATF, has stonewalled and resisted providing documents about the operation.  Along the way, the Department of Justice has insisted there was no gun-walking, then retracted that statement and reversed itself.  Clearly, the only way to try to get an accurate, complete account of what happened and why is to obtain every record and account of the facts.  Without the complete set of facts, fair and informed conclusions can't be drawn, and we might never know what happened to Agent Terry.  That can't stand.

Q:        How did you get involved?

A:        A month after Agent Terry's death, whistleblowers within the ATF came to my office with information about the guns found at the murder scene and evidence that Operation Fast and Furious possibly let as many as 2,500 other weapons flow from gun stores in Phoenix, Arizona, to Mexico and other places in the United States.  These whistleblowers had expressed concerns to the ATF about the dangers of selling to known straw buyers, but the ATF and the U.S. Attorney's office had urged the dealers to keep selling anyway.  I sent a letter to the ATF asking if there was any truth to these allegations and indicated I had documents to back them up.  Amazingly, the Department of Justice responded with a flat-out denial one week later.  I kept asking and showed evidence to the contrary to government officials.  A full ten months later, the Department of Justice withdrew its denial.  The oversight committee investigation in the House of Representatives stemmed from these inquiries and resulted in the Attorney General being held in contempt of Congress by the House of Representatives, for the first time ever.  The vote was 255 to 67.  The House also voted to authorize civil action in courts to compel production of subpoenaed documents.  I supported these efforts because contempt is the only tool Congress has to enforce a subpoena.  It is not a finding that the Attorney General is guilty of any wrongdoing in the underlying case.  Rather, it's an important procedural mechanism in our system of checks and balances to require that information be provided to Congress.  People deserve transparency and the accountability from their government.

Q:        What would motivate the government to let guns walk into the hands of criminals?

A:        Fast and Furious was built on a strategic decision to gather information rather than to enforce the law, all in the service of making a big, headline-grabbing case.  Tragically, when the headlines came, they were about the death of a brave federal agent rather than the capture of a drug kingpin.  Such a death was just what was feared by a cooperating gun dealer six months earlier.  This dealer expressed concerns in emails to the ATF that his cooperation with the government might get someone killed.  The ATF replied in writing and said not to worry, just keep selling to the straw buyers and ATF would stop the guns before they went south.  The gun stores were told their cooperation was necessary to the ATF case.  Without that assurance, there's little doubt they would have stopped making the suspicious sales.  But the gun dealers depend on the ATF for their licenses, so when the ATF asks for help there isn't much choice but to cooperate.  The ATF assured gun stores it was taking care of everything on its end but, instead, the ATF let the straw-buying ring operate and grow for months and months.  They watched and waited despite having information about the ring leader from the beginning.  To say the operation was "fundamentally flawed," as the Attorney General has admitted, is an understatement.  Along with getting information for the family of Brian Terry and holding the highest ranking government official accountable, my goal for this congressional investigation is to make sure a disastrous government program like this never happens again.

New graduates have good reason to celebrate their academic achievements.  After all, on average, a college degree remains a good indicator for boosting one's lifetime earning potential.  For many Americans, a college education is a lasting investment in future economic mobility.

After the gilded glow of the cap and gown and the pomp and circumstance of the commencement ceremony fade into memory, reality sets in.  The soaring costs of higher education and growing student debt are climbing to unprecedented levels.

College debt creates a significant financial burden on many new graduates.  For those fortunate to land a job in the still struggling economy, many will discover how hard it is to stretch a paycheck to cover the bills.  Making ends meet - let alone trying to get ahead - is that much harder with more than $1 trillion in outstanding student loans in the United States.

The lion's share of four-year degree recipients borrows money to attend college.  The percentage has increased from 45 percent to about 66 percent in the last decade.  After these graduates rejoice in flipping their tassels to the other side of the mortarboard, they not only walk away with a diploma, but they also walk away with an average debt of $23,000.  That figure jumps to nearly $50,000 for less affluent students who choose to attend private colleges and receive less need-based financial aid.

So, what factors are causing the explosion in college tuition?  And, does the student's debt burden square with his or her earning potential post-graduation?

In the U.S. Senate, I've led efforts to make it easier for families to save for college.  In the landmark 2001 federal tax laws, I secured a provision to make tax-free savings plans for college a permanent part of the tax code.  Encouraging families to save for college rather than relying on student loans can help many future graduates get off to a stronger start after graduation.  As then-Chairman of the Senate tax-writing committee, I also helped secure the tax deduction for college tuition and the tax deductibility of interest on student loans.

Now, even the longstanding sky-high rate of medical spending in the United States is less than the exploding growth of college tuition and fees.  Public policy needs to find a better way to expose the true costs of paying for a higher education and educate consumers.  That's why I'm working to give American families better tools to make informed decisions when sending their students off to college.  More useful information is necessary to help students check the value and earning potential of various college degrees.  Not all degrees are created equal.  Congress should have a serious debate about helping members of the next generation find the best path for their own personal pursuit of happiness as productive members of society.  Those pathways ought to be as broad and diverse as the next generation, from military and public service to vocational training, college, and post-graduate degrees.

My efforts to address escalating tuition hikes and student debt include my crusade to shine a bright light on public and non-profit private colleges with well-funded endowments that park their assets in tax-preferred vehicles.  Hoarding exorbitant assets in tax-preferred "rainy day funds" ought to be redirected towards lowering tuition for students and their families.  Through my rigorous oversight of the tax-exempt sector, including universities, hospitals and media-based ministries, I'm working to make sure non-profits are holding up their end of the bargain for the public good.  Tax-exempt colleges bear a unique responsibility to leverage their tax-advantaged resources to educate the public.  That's why I spearhead efforts to bring greater transparency to college revenues and expenses.  The public has a right to know how tax-advantaged dollars at tax-exempt higher education institutions square with their mission.  My review of soaring growth at college endowment funds a few years ago prompted several prominent schools to offer more generous student aid assistance.  As public awareness builds, let's hope the trend continues.  Whereas attending college is not an entitlement, colleges that benefit from tax-advantaged vehicles and tax-exempt status do bear a social contract to make higher education more affordable and accessible to the public.

Congress can take steps aimed at reining in college costs.  In May, I joined bipartisan forces in the U.S. Senate to try to bring greater transparency to the true cost of college tuition and fees.  The bill we proposed would cut through the clutter of financial aid letters that families receive from prospective colleges.  Decoding these letters to understand what is actually given, borrowed and owed can be next to impossible.  By having a clear picture in standardized language what students' debt burden will be after graduation, families would have an apples-to-apples cost-comparison to make with other colleges.  This ought to help students avoid taking on excessive debt and become more discriminating shoppers.  That alone could help control the soaring costs of college.  Colleges are increasingly competing to one-up each other to attract students, either through apartment-style housing, gourmet food services or amazing amenities that other institutions cannot match.  Empowering students and their families with better information about the cost and worth of a degree would help spark a race among colleges to provide a high-quality education at a good price.

Diplomas tied down with overwhelming student debt make it harder for the next generation to scale the ladder of opportunity.