Captain Bearcat
All-American in Everything
Posts: 9,512
Joined: Jun 2010
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I Root For: UC
Location: IL & Cincinnati, USA
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RE: A.O.C. Pushes For A Congressional Pay Raise: Democrats Upset
(06-12-2019 03:44 PM)banker Wrote: (06-12-2019 02:48 PM)Captain Bearcat Wrote: (06-12-2019 10:53 AM)gdunn Wrote: (06-12-2019 10:38 AM)Eagleaidaholic Wrote: (06-12-2019 09:32 AM)Captain Bearcat Wrote: Everyone's gonna hate me, but I think Congress members need a pay raise. Hear me out.
At $174,000 a year, only a career politician or a very wealthy person would run for office. If that's who you want in Congress, then keep the salaries low.
Congress members have higher expenses than the rest of us:
1) They MUST have two homes/apartments, one of which is in a very expensive city (DC). A 1-bedroom apartment in DC starts at $2000 a month, so that expense alone (including taxes) reduces their salary to $134,000. That's the 82nd percentile of US income.
2) They must spend way more on work clothes and transportation than the rest of us.
3) Unless you want to only have career politicians or professors, they are unpaid while they campaign for office. They also are sacrificing promotion opportunities and vesting service time when they take off from their real job.
Most congress members are independently wealthy because you can't support a family on a Congressional salary.
As it is, about 10% of Congress members live and sleep in their offices when Congress is in session. That's not right, but how else are they supposed to save for retirement or pay for college for their kids?
Sure, some of them have outside earning opportunities (book deals, speaking engagements), but that's only for the leadership. Out of 535 current congress members, I'll bet more than 500 never get significant income from speaking or book deals.
I'll say it again: If you're against Congress getting a raise, you're saying that you're in favor of every congress member being independently wealthy or career politicians.
I agree. Build some dormitories for them to live in while in D.C. and they won't HAVE to live in their offices unless they want to. Problem solved.
They have better benefits than our military. Build them a barracks. Problem solved. I build some really nice EIT barracks at Fort Leonard Wood, MO for the MPs... They can live in those. It was 3 starship barracks, plus site work, $30 million. That's a tax savings.
At $174k a year, they can afford a small place in DC or one of the suburbs. They don't need an expensive home. They're there to work. Not play.
A "small place in DC" is a 1-bedroom apartment. I looked up a few more sources, and they give a range of $1583-2831/month for the average cost of a 1-bedroom apartment in DC. I assume you don't want congresswomen being robbed while walking to work, so that rules out the bottom end of that spectrum.
And rent is paid out of post-tax dollars. They pay 41.95% marginal tax rate (federal 32% + DC 8.5% + 1.45% medicare). So if they pay $2000/month for 1 bedroom apartment, that's $41,343 per year out of their salary.
I'm 100% in favor of giving them the option of living in barracks. That's a lot more humane than forcing the 10% of Congress who aren't rich to live in their office.
Your tax payments are way off. You're applying the top tax bracket to 100% of their wages, not factoring in even a standard deduction, or making any other adjustments. The effective federal tax rate for the typical person making $175K is going to be between 13-18%.
Generally accepted debt/payment ratios say most people can afford 25% of their gross income for housing. That's $43,750 for a person making $175K, or $3,645 per month.
Now, if you want to live beyond your means because you think you are a celebrity instead of a junior House member, I could see where you could have problems. Is she living with her boyfriend that she put on her staff and pays six figures to? That would make things easier. Also, 29 year old bartenders don't usually get elected, she probably had a negative net worth going in, you know, because she had never done anything up to the point she was elected.
They also have to have a home in their district. That's a requirement. That's why the marginal tax rate is the relevant one to use (the % paid on the last dollar earned).
How many people do you know who have to maintain 2 homes in order to keep their job?
AOC is right - she literally couldn't begin working in DC until January because she didn't have a salary yet. In the last 20 years, high rent places like CA and DC have started requiring a ridiculous amount of past history in order to rent an apartment. I despise her politics, but she's a member of Congress and I want her to be able to be in Washington setting up her office and getting ready to work before Day 1.
The bolded part is exactly my point - I want at least a few middle-income Americans in Congress! It shouldn't be just a rich person's club! But Joe the Plumber (or Rosie Riveter, Bob the Builder, etc) would be out of his mind to quit his plumbing job to run for Congress - he'd lose a year of salary while he campaigned, and if he won he'd probably have higher expenses than his salary. If that means Duncan Hunter (richest man in Congress) also gets an extra 100k/year, I think it's worth the tradeoff.
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