As if they needed it, more perks for the politicos

As if the politicos don’t get enough perks from being in office that we lowly constituents never get a chance at, here’s another instance in which some of the privileged are taking advantage of being in the right position at the right time.  U.S. Representative Darrell Issa, a California republican who happens to chair the House Oversight and Government Reform Committee has asked for a House Ethics Committee investigation of four House members he says have received VIP discounted loans from the former Countrywide Financial Corporation.  Countrywide just happens to be the company whose subprime mortgages were largely responsible for the nation's foreclosure crisis, according to congressional investigators, as cited in a CNN story.

Apparently, Countrywide offered VIP treatment to select people who were considered “Friends of Angelo,” specifically Angelo Mozilo, Countrywide’s former CEO.  Two loan recipients have already been cleared of any wrong doing, Rep. Edolphus Towns (D-N.Y.), the former chairman of Oversight and Government Reform, has acknowledged receiving two loans through the VIP program. Towns stated that he was not aware of his inclusion in the program, known as “Friends of Angelo” within Countrywide. And of course that clears him of any ethical issues, although it would be pretty hard to convince me that he was unaware of the terms of the loan and what must have been a too-good-to-be-true rate.  The Senate Ethics Committee investigated two lawmakers - Sen. Kent Conrad (D-N.D.) and former Sen. Christopher Dodd (D-Conn.) - who also took part in the Countrywide VIP program. No charges were filed against the two senators, but the Senate Ethics panel said both Conrad and Dodd “should have exercised more vigilance” in their dealings with Countrywide.  What exactly does more vigilance mean? Should they have looked behind the terms of the loans? Did they think that senators, because they are senators, deserved such discounted rates?

This is not new news. Countryside was investigated about this in 1998, at which time they were found to be currying favor with VIPs by offering loans; they also gave loans to 153 people working for Fannie Mae and Freddie Mac. But all of that aside, don’t our lawmakers have enough income and perks without having to take advantage of questionable borrowing?

Let’s see, their annual income is a paltry $174,000 per year; up 17 percent from the minimal 145,100 they took home, I would say earned but that is debatable, 10 years ago.

But wait, there’s more:

Retirement benefits:  they receive either Civil Service Retirement or the newer Federal Employees’ Retirement System, enacted in 1986 for employees hired after Dec 31, 1983.  Under CSRS, a member is eligible for benefits upon retirement from Congress, if they are 62 with five years of congressional service, 60 with 10 years of service, or 50 with 20 years of service.  Under FERS, a member is eligible for benefits upon retirement from Congress if they are 62 with five years’ service, 50 with 20 years’ service, or any age with 25 years’ service.

Personal Staff Allowance: 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 staff funds can be transfers to the official expense account for use in other categories, such as computer and related services.  The top salary allowed for House personal staffers in 2005 was $156,848.  A senators’ personal staff allowance varies in accordance with the size of the members’ state. Senators may hire as many aides as they wish within their allowance; typically ranging between 26 and 60, depending on the state and the salaries offered.  The max salary allowed to senate staffers in 2003 was $150,519, and for senate legislative staffers, it was $153,599. Nice salaries for someone he chooses.

In addition, the congressmen also get expense allowances.  For members, these are kept separate from personal staff allowances, and include domestic travel, stationery, newsletters, overseas postage, telephone and telegraph service, and other expenses in Washington and the members state or congressional district.  They also have a thing called the Franking Privilege, which allows them to mail official letters and packages under the members’ signature without charges for postage.  Domestic travel is included in office expenses at a minimum of $9,700 for house representatives as of 2003; and for the Senate is part of the overall population and distance, and includes travel. Foreign travel is also covered, providing they are conducting government business.  Outside employment income is limited to 15 percent of the members’ pay, but cannot be for real estate, insurance sales, law practice, medicinal practice, or service as a corporate officer or board member.

Really, it’s no wonder people want to get elected. How much do they earn?  That’s too much calculus for me to figure, although I’ve never seen a poor senator or congressman.  There seems to be no limit to their income or their ability to anoint friends and relatives with high-paying government jobs. I suppose, if one were to believe in reincarnation, it would be good to come back as a professional politician; but with my luck I would just miss the congressional cut-off and come back as a cockroach instead.