Congressional Perks
Any doubt that Republican members of Congress could be motivated by anything other than personal greed has flown out the window with the latest rounds of tax cuts. The Washington Post has an article here that discusses how much supporters of the tax cut in Congress will benefit from the tax cut on dividends.
Dozens of House members stand to save thousands of dollars thanks to the dividend tax cut that Congress passed last month, according to annual disclosure records released yesterday.
While many lawmakers reported little or no dividend income in 2002, others reported dividends ranging from tens of thousands to millions of dollars. If they conduct similar transactions this year, they will enjoy substantial tax savings under the measure that President Bush initiated and the GOP-led Congress enacted. Retroactive to Jan. 1, the top tax rate for dividends, now 38.6 percent, will drop to 15 percent.
Recall from Civics the 27th Amendment to the U.S. Constitution. The amendment states: “No law, varying the compensation for the services of the senators and representatives, shall take effect, until an election of representatives shall have intervened.” The purpose of this amendment (which was not added to the Constitution until 1992) was to ensure that Congress couldn’t pile on personal benefits in the form of salary increases or other perks until after an election cycle had intervened. The framers wanted to give the electorate an opportunity to vote the rascals out if they disagreed with a change in congressional compensation.
Too bad the same could not have been required for other legislation (like the latest tax cuts) that so clearly benefits members of Congress.
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