1 / 82

Why run for office?

Why run for office?. Power Pay Perks Prestige. Why are politicians always rich?. Cost to run

idania
Download Presentation

Why run for office?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Why run for office? • Power • Pay • Perks • Prestige

  2. Why are politicians always rich? • Cost to run Running for Congress has never been an easy proposition, or an inexpensive one. But even in these years of low inflation, the cost of winning a seat in the U.S. Senate or House of Representatives keeps climbing upwards, with no guarantee of success when all the votes are counted. Here's how the numbers break down.

  3. What do Politicians get paid? The current salary (2011) for rank-and-file members of the House and Senate is $174,000 per year. 57% of Congress are millionaires

  4. Beginning January 2009, US representatives and senators are paid $174,000 a year. That represents an increase of $4,700 and the 10th time since 1998 that congressional pay has been given a boost. No raises were given since…

  5. http://1.bp.blogspot.com/-TvddQbJu7UI/Ts7expO7zdI/AAAAAAAAOmM/jv9yINbVVm4/s1600/rich+congress.jpghttp://1.bp.blogspot.com/-TvddQbJu7UI/Ts7expO7zdI/AAAAAAAAOmM/jv9yINbVVm4/s1600/rich+congress.jpg

  6. Congressional pay rates also affect the salaries for federal judges and other senior government executives. During the Constitutional Convention, Benjamin Franklin considered proposing that elected government officials not be paid for their service. Other Founding Fathers, however, decided otherwise.

  7. Retirement Benefitsfor members are available through the Civil Service Retirement (CSRS) and the newer Federal Employees' Retirement System (FERS). • (FERS was enacted in 1986 to provide retirement benefits for all civilian employees and postal workers hired after Dec. 31, 1983. FERS consists of three major parts • Social Security, • a required basic plan to supplement Social Security • an optional tax-deferred savings plan similar to private 401(k) plans. • Under CSRS, a member becomes eligible for benefits upon retirement from Congress if he or she is 62 years old with five years of congressional service; 60 years old with 10 years of service; or 50 years old with 20 years of congressional service. • Under FERS, a member becomes eligible for benefits upon retirement from Congress if he or she is 62 years old with five years of congressional service; 50 years old with 20 years of service; or any age with 25 years of congressional service. • "Retirement Benefits for Members of Congress," by Katelin P. Isaacs, CRS Report RL30631, Updated January 3, 2011 from the Congressional Research Service  (17-page PDF ) • "Federal Employees: Pay and Pension Increases Since 1969," by Katelin P. Isaacs, CRS Report 94-971,  Updated December 7, 2010 from the Congressional Research Service (13-page PDF )

  8. A House member would have to be re-elected twice to qualify, but a first-timer serving a full six-year term in the Senate will thereafter be eligible for retirement at our expense until death or until the coffers run bone-dry, whichever comes first.

  9. Personal Staff Allowancesenable members to hire aides for clerical, administrative, legislative and media support.  • Representatives' staff allowances can be used to hire up to 18 permanent and four non-permanent aides divided between the members' Washington and district offices. Up to $75,000 of a representative's staff funds can be transferred to his or her official expense account for use in other categories, such as computer and related services. • Senators' personal staff allowances vary with the size of the members' states. Senators may hire as many aides as they wish within their allowance; typically this ranges between 26 and 60, depending on the size of the state and the salary levels offered to the staffers. • The maximum salary for a stafferin a member's personal office was $169459 in the Senate and $168411 in the HouseIn addition to their personal staffs, senators and representatives are assisted on legislative matters by staffs of the committees and subcommittees on which they serve. • Congressional salary information is available from LegiStorm. • "Legislative Branch Staffing, 1954-2007," by R. Eric Petersen, CRS Report for Congress R40056, October 15, 2008 (16-page PDF )

  10. WV 1st : Congressman David B Mc Kinley’s staff

  11. Expense Allowancesfor members, kept separate from personal staff allowances, cover: • domestic travel, • stationery, • newsletters, • overseas postage, • telephone and telegraph service, • and other expenses in Washington and in the members' state or congressional districts. See also • Legislative Branch Appropriations, 2007, S. Rept. 109-267, June 22, 2006 (67-page PDF) • Legislative Branch Appropriations, 2010, S. Rept. 111-29, June 18, 2009 (65-page PDF) • Legislative Branch Appropriations, 2012, S. Rept. 112-80, September 15, 2011 (62-page PDF) • "Legislative Branch: FY2012 Appropriations," by Ida A. Brudnick, CRS Report for Congress R41870, August 3, 2011 (28-page PDF )

  12. The Franking Privilege-allows a member to mail official letters and packages under the members' signature without charges for postage. (See Congressional Deskbook, § 5.50, "Franking Privilege") • Regulations limit the franking privilege to correspondence "in which the member deals with the addressee as a citizen of the United States or constituent." • Mail permitted under the franking privilege are: • mail to any individual or agency • and to officials at any level of government regarding programs and proposed legislation; • newsletters and news releases; • questionnaires, • nonpartisan voter registration or election information and assistance; • mailings that consist of federal laws and regulations; • government publications and publications of general interest.

  13. The use of the frank is prohibited for mail that is purely personal, mail that is "laudatory and complimentary" to the member, or mail related to a political campaign

  14. In 1989, the franking privilege came under strong attack – • and even appeared endangered at one point. The attack focused on incumbents' use of mass mailings, particularly newsletters about a member's activities and notices of town meetings, to raise name identification in an election year. Runaway costs of such mailings also were a point of concern.[GIVING INCUMBENTS AN UNFAIR FINANCIAL ADVANTAGE IN ELECTIONS] • In legislation considered in 1989, both the House and Senate voted at different points to eliminate the franking privilege for mass mailings. However, in the end, members only cut in half, from six to three, the number of such mailings a member is allowed to send each year.(Mailed announcements for town meetings were not included.) The final provisions of the legislation limited the amount of newsletters and set up separate funding accounts for the House and Senate to make it clear which chamber is exceeding its limits. • The Senate in 1989 changed its internal rules concerning franked mail to allocate funds among senators and to prevent use of campaign funds to pay for franked mass mailings - a practice House rules already barred. • The fiscal year 1991 Legislative Branch Appropriations Act also imposed new restrictions on franking privileges. The act gave each House member a mail budget and required public disclosure of how much each member spends on mailings. The act also limited a senator's ability to transfer funds into their mail accounts from other accounts. • See also • "Franking Privilege: Historical Development and Options for Change," Matthew Eric Glassman, CRS Report RL34274, Updated December 21, 2010 from the Congressional Research Service  (26-page PDF )

  15. The franking privilege gives lawmakers millions in tax dollars to create a favorable public image. Experts across the political spectrum have labeled the frank as an unfair electioneering tool. In past election cycles, Congressional incumbents have spent as much on franking alone as challengers have spent on their entire campaigns.

  16. ForeignTravelby members for the conduct of government business is financed through special allowances. These funds can come from various sources. • Money is appropriated by Congress through the Mutual Security Act to pay travel and other expenses of congressional committees for routine and special investigations. • Members traveling abroad are allowed to use American-owned counterpart funds. These are foreign currencies held by U.S. embassies and credited to the United States as part of various foreign assistance programs; they can be spent only in the country of origin. • American Ambassadors overseas are allocated sums for official entertaining. These funds may be used for the same purpose by members of Congress when traveling overseas. • Members may use the funds of various government agencies when they speak on foreign policy issues at overseas posts. • Members may travel on military aircraft, including cargo planes, at no charge.

  17. The 1989 Ethics in Government Act set restrictionson foreign travel paid by lobbyists and other special interests. • For both the House and Senate, special-interest paid foreign travel is limited to seven consecutive days, excluding the days spent traveling. • Domestic travel funded by special-interest groups is limited to four consecutive days on the House side (including travel time), and three consecutive days on the Senate side (excluding travel time). • One relative per trip also may accept special interest-paid travel expenses, and the ethics committee may grant an extension in exceptional circumstances. • See also • "Congressional International Travel: Data Since 1993 and Options for Congress," by R. Eric Petersen, Terrence L. Lisbeth, and Mabel Gracias, CRS Memorandum to Congress, February 26, 2010, from the Congressional Research Service  (24-page PDF )

  18. Outside Employment Incomeis generally limited to 15% of member pay. There are, however, certain prohibited categories: Members may not receive compensation for employment in real estate, insurance sales, the practice of law, the practice of medicine, or service as an officer or board member.

  19. Strange Congress: Congressional Perks You Pay For Posted by DC Republican in Strange Congress on Feb 17th, 2009 | Free parking: Not only do members of Congress receive parking on Capitol Hill, but they also receive free (prime) private parking spots at the two nearby airport, Reagan National and Dulles airport. Salary: The current salary for a member of Congress is $174,000. However, Congress has the authority to raise their salary as they wish, without having to hold a vote. It’s also interesting to note that during the great depression, members of Congress voluntarily took a pay cut… I somehow don’t think we’ll see that happen these days. http://dcrepublican.com/2009/02/17/strange-congress-congressional-perks-you-pay-for/

  20. Perks from Lobbyists: • Members of Congress are still able to use their lobbyist ties to get into events that regular people simply do not have access to. (For example, if a Member of Congress wanted a prime ticket to a sold-out event, he could still get that ticket from lobbyists he’s close with, as long as the face value of the ticket is reimbursed by the Member. However, this money doesn’t have to come from the Member’s pocket, but instead can come from the usually deep campaign account, which usually contains money from lobbyists and their associated PACs.)

  21. Days Off: While most Americans get one day off for Memorial Day and sometimes Presidents Day, members of Congress get the entire week off. However, Congress doesn’t like to call these vacation days, but instead call them “District Work Periods,” even though there is nothing requiring them to be in their district during those times. Congress also gets a number of additional recesses, some lasting as long as a month.

  22. Health and life insurance, approximately 3/4 and 1/3 of whose costs, respectively, are subsidized by taxpayers.

  23. cut-rate health clubs • fine furnishings. • An office staff that performs “constituent services” and doles out pork-barrel spending, providing more opportunities for “favors” that can be returned only at election time. • Exemptions and immunities from tax, pension, and other laws that burden private citizens — all crafted by lawmakers themselves.

  24. This list is by no means exhaustive, and I encourage everyone to explore some of the additional perks Congress currently receives, but also examine what bonuses came with the job in previous years.

  25. A cost-of-living-adjustment (COLA) increase takes effect annually unless Congress votes to not accept it. Members of Congress receive retirement and health benefits under the same plans available to other federal employees. They become vested after five years of full participation.

  26. "Members of Congress have the only job in the country whose occupants can set their own salary without regard to performance, profit, or economic climate," said Tom Schatz, president of the Council for Citizens Against Government Waste in a press release. "Clearly, members must think that money grows on trees. http://usgovinfo.about.com/cs/agencies/a/raise4congress.htm

  27. 57% of Congress are Millionaires Who are the wealthiest members of Congress? Here's a look.

  28. #10 - U.S. Sen. Dianne Feinstein U.S. Sen. Dianne Feinstein, a Democrat from California, reported a net worth of between $46 million and $108.1 million in 2010, according to financial disclosures.

  29. #9 - U.S. Sen. Jay Rockefeller U.S. Sen. Jay Rockefeller, a Democrat from West Virginia, reported a net worth of between $61.4 million and $136.2 million in 2010, according to financial disclosures.

  30. #8 - U.S. Rep. Michael McCaul U.S. Rep. Michael McCaul, a Republican from Texas, reported a net worth of between $73.7 million and $201.5 million in 2010, according to financial disclosures.

  31. U.S. Rep. Vern Buchanan U.S. Rep. Vern Buchanan, a Republican from Florida, reported a net worth of as much as $366.2 million in 2010, according to financial disclosures.

  32. #6 - U.S. Sen. Herb Kohl U.S. Sen. Herb Kohl, a Democrat from Wisconsin, reported a net worth of between $89.4 million and $231.2 million in 2010, according to financial disclosures.

  33. U.S. Rep. Jared Polis, a Democrat from Colorado, reported a net worth of between $36.7 million and $285.1 million in 2010, according to financial disclosures. • #5 - U.S. Rep. Jared Polis

  34. #4 - U.S. Sen. Mark Warner U.S. Sen. Mark Warner, a Democrat from Virginia, reported a net worth of between $65.7 million and $283.1 million in 2010, according to financial disclosures. U.S. Senate

  35. #3 - U.S. Sen. John Kerry U.S. Sen. John Kerry, a Democrat from Massachusetts, reported a net worth of between $182.8 million and $294.9 million in 2010, according to financial disclosures.

  36. #2 - U.S. Rep. Jane Harman U.S. Rep. Jane Harman, a Democrat from California, reported a net worth of between $151.5 million and $435.4 million in 2010, according to financial disclosures.

  37. #1 - U.S. Rep. DarrellIssa U.S. Rep. Darrell Issa, a Republican from California, reported a net worth of between $156.1 million and $451.1 million in 2010, according to financial disclosures. U.S. House

  38. So can the U.S. government continue to afford to shell out nearly half a trillion dollars to federal employees every single year? • Of course not. • The truth is that the U.S. government is flat broke and yet most of our politicians still seem extremely resistant to consider anything that would even slow down the wild spending that has been going on. • So what do we get for the $447 billion that we are spending on federal workers every single year?

  39. Not a whole lot - unless you consider paperwork, bureaucracy and a gigantic pile of ridiculous regulations to be a good thing. • America needs a fundamental shift in attitude.  Instead of expecting a "nanny state" to take care of us, we should desperately try to reshape the federal government into a much smaller entity that will finally get off our backs. • We have been living beyond our means for decades, and we cannot afford to pay for this bloated behemoth of a government for much longer. • Hopefully Americans will wake up and do something about this nonsense before it is too late.  Because right now the federal government has become an out of control monster that is gobbling up everything in sight. • Read more: http://www.businessinsider.com/rich-congress-federal-employees-2010-11#so-can-the-us-government-continue-to-afford-to-shell-out-nearly-half-a-trillion-dollars-to-federal-employees-every-single-year-13#ixzz1fi9mUbT8

  40. Means Testing has been proposed as a solution to America’s out-of-control entitlement spending. Under a means test, the government assesses the resources available to an individual — his income and assets, aside from the benefit payment in question. Example: Why should a billionaire like Michael Bloomberg have his health care heavily subsidized by overburdened taxpayers? However: Means-testing entitlement benefits could punish the very people who work the hardest and save the most, depressing economic activity and discouraging good behavior. http://www.nationalaffairs.com/publications/detail/means-testing-and-its-limits Why then, can Means Testing not be applied to elected officials salaries and benefits?

  41. Why is Congress a millionaires club? http://www.cbsnews.com/8301-503544_162-20075586-503544.html?tag=contentMain;contentBody

  42. Insider Trading?

  43. What is Insider Trading? Insider tradingis the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. Illegal insider trading is believed to raise the cost of capital for securities issuers, thus decreasing overall economic growth http://en.wikipedia.org/wiki/Insider_trading

  44. "THROW THEM ALL OUT: How Politicians and Their Friends Get Rich Off Insider Stock Tips, Land Deals and Cronyism That Would Send the Rest of Us to Prison" by Hoover Institution fellow Peter Schweizerhit bookshelves amid a firestorm of publicity on November 15, 2011. This accompanied a “60 Minutes” Segment on the same subject. http://www.marketwatch.com/story/the-hottest-book-in-washington-sparks-congress-to-act-2011-12-05

  45. http://non-fiction.thedeepening.com/wp-content/uploads/2011/11/ThrowThemAllOut450x680.jpghttp://non-fiction.thedeepening.com/wp-content/uploads/2011/11/ThrowThemAllOut450x680.jpg

  46. In the book, Peter Schweizer points out several examples of insider trading by members of Congress, including action taken by Spencer Bachus following a private, behind-the-doors meeting on the evening of September 18, 2008 when Hank Paulson and Ben Bernanke informed members of Congress about the imminent financial crisis, Bachus then shorted stocks the next morning and cashed in his profits within a week.[ http://pokerroomreview.com/wp-content/uploads/2010/05/Rep-Spencer-Bachus.jpg http://upload.wikimedia.org/wikipedia/commons/thumb/3/3f/Ben_Bernanke_official_portrait.jpg/220px-Ben_Bernanke_official_portrait.jpg http://www.stocktradingtogo.com/wp-content/uploads/2008/09/hank-paulson.jpg

  47. 60 MINUTES Congress: Trading stock on inside information? http://youtu.be/l3DZh1109W8 http://youtu.be/B1tULo8Tar0

  48. Martha Stewart In 2004, she was convicted of lying to investigators about a stock sale and served five months in a West Virginia federal prison http://www.demeterclarc.com/wp-content/uploads/images/2010/05/MARTHA-WITH-THE-FEDS.jpg

More Related