Wright's reimbursements

meckcommish, while one can argue about whether the $105 is too high or too little (it has been the same for 13 years), it does NOT violate any federal or state tax law, in fact, the Internal Revenue Code has a specific section on legislator per diem. It provides that for those who live more than 50 miles of the legislative building, the per diem is NOT taxable as long as the legislature is in session at least three days in the week, whether the per diem is paid for one day a week or seven days per week. If the legislator lives within 50 miles, the amount is 100% taxable. It's Section 162(h) of the Internal Revenue Code. The rules are slightly different for off-session committee meetings, but if there is an official meeting of a committee, the same tax treatment applies for that day. The Code caps the maximum at about $125 per day. Can you possibly do a little research before accusing people of violating federal tax laws?

The irony of all of this stuff about Wright (or Black) is that the entire legislative pay process is corrupt.

I have, for over a year, asked repeatedly of both the media and those in legislative leadership about a salary and perks process that is illegal (violates Federal and State tax law). I have been asked many different legislators and members of the media about it. Mostly the media only writes when some political figure gets caught such as rep. Write. They never write about the bigger problem.

Currently, representatives earn a tax-free ‘subsistence allowance’ of approx $105 a day. That amount is paid from the start of the ‘session’ to the end of the session regardless of someone is there or not. Normally, a legislator arrives on Monday about noon and leaves on Thursday night (or Friday morning). 3 of the 7 days of the week (42%) – more if it is a holiday week when legislators are in session they get a $105 per diem for time when they are not even in Raleigh (and pay no Federal or State income taxes).

Media articles suggest that individuals live in RV’s (in Mike Deckers’ case a ‘van’) or double, triple or quadruple up to save money and pocket the $105 a day.

If you are in the majority (part of the elite ruling class of of the legislature) you are put on committees (as Rep Wright was) and are paid the $105 also for the days those committees are in session. Some of these committees are standing committees who are in session year-round.

This means that a legislator that is part of the elite ruling class can be paid up to $120,000 a year (most of it in a tax free subsistence allowance) while a legislator that doesn’t go along to get along is denied committee assignments and therefore only collects the basic pay, office allowance and subsistence allowance during the basic session.

Here is a summary of the ‘pay’ for legislators for August of 2002. You will note that while ‘regular pay' was $145,246 and the expense allowance (taxable office allowance) was $68,425 for a total of $213,671 the ‘subsistence' allowance for that month was $363,376. This amount represents a period when the legislature was in session and all 120 members of the house received the payment:

August 2002
EXPALLOW Paid $68,425.00 120
Average $ 570.21

REGPAY Paid $145,246.53 121
Average $1,200.38

SUBSISNT Paid $363,376.00 101
Average $3,597.78

SUBSISTAX Paid $67,704.00 19
Average $3,563.37

TRAVELNT Paid $40,427.74 101
Average $ 400.27

TRAVELTAX Paid $1,154.20 15
Average $ 76.95

Total 686,333.47 477.00
Average 9,408.96

On the other hand, In January of 2002, when the legislature was not in session only 28 members of the elite received the subsistence allowance.

January 2002
EXPALLOW Paid $67,866.00 119
Average $ 570.30

REGPAY Paid $142,191.90 120
Average $ 1,184.93

SUBSISNT Paid $6,656.00 28
Average $ 237.71

SUBSISTAX Paid $1,456.00 4
Average $ 364.00

TRAVELNT Paid $2,608.26 28
Average $ 93.15

TRAVELTAX Paid $257.52 4
Average $ 64.38

Total 221,035.68 303.00
Average 2,514.48

I believe that the way that the legislature is paying its members may be in violation of IRS and NC Department of Revenue rules because the money is paid regardless of whether the individual is actually there and is paid for days or periods when the legislature is in recess indicating that the money is in fact ‘taxable’ income – not just a subsistence allowance. This is called violating the ‘deemed substantiated’ rules – see below for details.

The public disclosure of the way that legislators are living (in van’s and RV’s and multiple apartment arraingements) indicates that the money is more taxable than non-taxable.

The process by which the subsistence allowance is handed out using the committee assignment process creates two classes of legislators – the elite who are in the majority who make lots of subsistence money as committee members and the rest who are not in the majority or whom the elite don’t like who don’t get those assignments and therefore don’t receive the subsistence pay.

My concern is that the legislature pays this allowance from the time that the legislature goes INTO session until it goes OUT OF session. Every day (seven days a week) even though the legislature adjourns for the week on Thursday PM or Friday AM and comes back into session Monday PM. The same for the 'committees' such as the 'standing' committees who work 24/7 and most of the leadership are on.

This means that the legislators receive a per diem for Friday night, Saturday night and Sunday night when it is established and well known that they are not even in Raleigh. This raises concerns that the legislators are violating IRS rules and avoiding taxes. Clearly, if they are sleeping in vans and in RV's and doubling and tripling up they are pocketing a significant amount of cash that is not being reported to the IRS as income.

bvmoore, yeah you're right - they noted the party affiliation ... in the 5th of 7 (really, just 6) paragraphs and after most readers would moveon and assume Wright's just another member of the "Republican culture of corruption" the Dems want people to believe.

Wright, a Wilmington Democrat...
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I find it interesting that Republicans are so blinded by the "liberal Media" lie perpetuiated by Hannity and Limbaugh, that they can't see what is plainly right in front of their face.

I find it intresting how if it is a Republican the N&O names the individual's party affilliation, but no so when it's a Democrate.