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Lifestyles of the Rich and Shameless

Lifestyles of the Rich and Shameless

Posted on August 31, 2010 by Dan Mitchell

The gilded nobility otherwise known as politicians get lavish compensation packages, particularly when fringe benefits are part of the equation. But that doesn’t include their first class travel to exotic overseas locations. And even that doesn’t count the walking-around money they get – sometimes as much as $300 per day. But they’re supposed to actually spend their “per diem” money, not keep it, and this has gotten some of them in trouble. Here’s an excerpt from a Wall Street Journal report on the issue.

Congressional investigators are questioning a half-dozen lawmakers for possibly misspending government funds meant to pay for overseas travel, according to people familiar with the matter.

…Congressional rules say the daily travel funds, called a per diem, must be spent on meals, cabs and other travel expenses. But when lawmakers travel, many of their meals and expenses are picked up by other people, such as foreign government officials or U.S. ambassadors.

That can leave lawmakers with leftover money. Lawmakers routinely keep the extra funds or spend it on gifts, shopping or to cover their spouses’ travel expenses, according to dozens of current and former lawmakers.

The cash payments vary according to the cost of living and range from about $25 a day in Kabul to more than $250 a day in one part of Japan. Lawmakers also usually request and receive an additional $50 a day. Leftover funds can add up to more than $1,000 a trip for longer visits to expensive regions.

…The travel inquiry is the latest in a string of ethics investigations in the House that could hurt Democrats at the polls in November by undermining the party’s message that it has “drained the swamp” of ethics abuses in Washington.

The House ethics committee is also pursuing high-profile cases against Democratic Reps. Charles Rangel of New York and Maxine Waters of California. Both lawmakers could face public proceedings in coming weeks that would be the congressional equivalent of a trial.


corruption elitism politicians
August 31, 2010
Dan Mitchell

Dan Mitchell

Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.

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