Costly Present

Congress returns its tax break

What is Christmas without gifts? So apparently thought the members of the U.S. House and Senate last December when they quietly voted to give themselves a tax break: an automatic deduction of $75 for living expenses each day Congress meets during the year. Members could take advantage of the deduction even on days they were not in Washington, as long as at least a few of their colleagues were in session. That bit of self-beneficence raised the annual tax deduction to which members are entitled from $3,000 to about $20,000.

But as often happens, the gifts one chooses for oneself can be too costly. Incensed taxpayers fired off 20,000 letters of protest, calling the tax break a backdoor pay raise on members' salaries of $60,662.50. Agreed Congressman Lawrence DeNardis of Connecticut: "It was outright legislative fraud and deceit."

A few weeks ago, the Senate with great sanctimony repealed the tax break and restored the $3,000 deduction limit. Unwilling to endure the public's wrath alone, the House reluctantly followed suit. Massachusetts Congressman Silvio Conte sneered at the Senate: "You got a bunch of fat cats up there raking in the big bucks. They can be big statesmen because they can collect those big honoraria." Utah Senator Jake Garn gibed that House members were "just as gutless" for retreating on their tax deductions.

The House got even last week by voting to put an $18,200 cap on Senators' outside income, the same limit that applies to members of the House. Previously there was no ceiling on outside earnings in the Senate. Says DeNardis: "It was straight revenge. The House thinks the Senate consists of millionaires and hypocrites."

Members of both houses are already trying to find ways to circumvent the restrictions. Only half jokingly, Senate Majority Leader Howard Baker of Tennessee suggests having the Supreme Court set congressional pay. Says he: "I've concluded that Congress is institutionally unable to set its own salary."

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