Thursday, April 11, 2013

Pay Cuts and Celebrations

I hear that the president, secretary of state and other members of the administration have announced that they will be taking a 5% pay cut in support of federal workers who are being furloughed because of sequestration.  This sounds wonderful doesn't it?

Let's see how it works in the case of the president.  His pay is not actually being cut 5%.  Instead he will write a check for 5% of his salary and donate it to a charity.  He's so generous.

Come tax time, he's be able to take that 5% charitible contribution deduction on his return.  I'm not sure of the exact math, but somehow that doesn't amount to a 5% cut in his salary.  He gets the benefit of a deduction.

If only the federal employees could consider their 5% cut a charitible contribution to the US federal budget.

On another note, White House tours were eliminated because of sequestration and the fact that some secret service agents were being either reassigned or furloughed.  There was a gala party at the White House on Tuesday night.  I've heard that it was being paid for with private money.  I'm sure there were additional secret service agents assigned.  Were they paid with private money, or was their cost added to our budget for the running of our house?

Just asking.

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