Date: Wed, 25 May 1994 19:00:27 -0400 Subject: Cut Congressional Pay [To subscribe to Congressional Reform Briefings send the following e-mail to listserver@essential.org: SUBSCRIBE CONG-REFORM YOUR NAME] ISSUE OVERVIEW: Since 1981, Congress has voted itself a $36,000 pay raise in constant (inflation-adjusted) 1993 dollars. Meanwhile, there has been no growth in median family income since 1972, no growth in median individual income since 1968, and no growth in median male income since 1963. Citizens should call or write their House member urging then to co-sponsor H.R. 212, which would cut the pay of members of Congress from $133,600 to $89,500. Citizens should call or write their Senators urging them to introduce and actively support a companion bill to H.R. 212. ISSUE BRIEFING: Members of Congress have received large pay increases in comparison to the U.S. median family income, median individual income, minimum wage workers, and the income of teachers, secretaries, farmers, and others. In 1981, the difference between the Congressional salary and the U.S. median family income was $61,388 in 1993 dollars. But in 1992, this gap had grown to $96,349 in 1993 dollars, which is an increase of 57 percent. In 1981, the gap between the Congressional salary and the U.S. median annual individual income was $83,611 in 1993 dollars. In 1992, the difference between them had risen to $118,986 in 1993 dollars, which is an increase of 42 percent. Cuts in Congressional pay remain enormously popular with the American public. A March 25, 1994 Americans Talk Issues Foundation public opinion survey found that 80 percent of Americans support cuts in congressional pay, with only 13 percent opposed. However, cuts in congressional pay are extremely unpopular among members of Congress. Just as most members of Congress are loathe to give up corporate gifts of meals and vacations, they despise the thought of cutting their pay. When the economic gap between the rulers and the ruled grows too large, democracy suffers. Citizens view their rulers as governing by double standards and selfishness. Rulers lose their moral authority to govern. Members of Congress, part of a broke, deficit-ridden government, should not generously compensate themselves with tax dollars while many taxpayers can barely make ends meet. Most ordinary Americans have suffered stagnant or declining incomes and wages for at least two decades. In 1972, the U.S. median family income was $38,760 in 1993 dollars. In 1992, the median family income had slipped to $38,266 in 1993 dollars. The U.S. median individual income has fallen from the 1968 level of $15,782 in 1993 dollars, to the 1992 level of $15,629 in 1993 dollars. The average hourly wage for a production and non- supervisory worker in 1973 was $11.37 in 1991 dollars. By 1991, the average hourly wage had fallen to $10.34 per hour in 1991 dollars. For males, in 1963, the median income was $21,492 in 1993 dollars. In 1993, median male income had dropped to $21,470 in 1993 dollars. There has been no growth in median male income in the last 30 years, making this the first generation of sons in the history of America who earn less than their fathers did. Since 1955, Congressional salaries have increased from $12,500 ($68,095 in 1993 dollars) to $133,600 in 1993. This is a real income gain of $65,505 in 1993 dollars. Since 1981, Congressional salaries have risen from $60,662.50 ($97,296 in 1993 dollars), a real income gain of $36,304 in 1993 dollars. In addition to their $133,600 annual salary, and very generous pensions, members of Congress often receive large sums of "hidden income" in the form of perks, including: gifts of vacations and meals from corporate lobbyists and others, frivolous foreign travel and junkets, official expense accounts to pay for meals, liquor, hotel accommodations, and first-class air travel. The personal use of campaign funds is rampant. Members of Congress also receive other benefits such as taxpayer- subsidized medical insurance and life insurance, and a special $3,000 annual tax deduction as a home allowance. Examples of other perks received by Members of Congress during 1991-92 include: * Representative Julian Dixon spent $80,003 of federal monies on first-class air travel. * Representative William Clay spent $7,058 of campaign funds on liquor store beverages. * Speaker Tom Foley spent $41,911 of leadership PAC and campaign funds on meals for House Leadership and others. * Representative Dan Rostenkowski spent $104,661 of campaign and leadership PAC money on meals and catering. Pensions for members of Congress are extremely generous compared to the Social Security benefits received by ordinary Americans. For example, if House Speaker Tom Foley were to retire at the end of this year, his expected annual Congressional pension benefit would be $123,804, and his expected lifetime benefit would be $3,276,649. However, the average retired worker's Social Security benefit in 1994 will be $8,088. LEGISLATIVE STATUS: H.R. 212 NEEDS MORE CO-SPONSORS. If citizens generate enough political pressure for congressional pay cuts, it may be possible to attach H.R. 212 as an amendment to the House and Senate legislation arising out of the Joint Committee on the Organization of Congress. Perhaps the best indication of the congressional distaste for H.R. 212 is that House Speaker Tom Foley has referred H.R. 212 jointly to the following five House committees: Post Office and Civil Service, House Administration, Judiciary, Ways and Means, and Rules. H.R. 212 is sponsored by Representative Andy Jacobs Jr. (D- IN) and co-sponsored by Representatives Cliff Stearns (R-FL), Ralph Regula (R-OH), Alfred McCandless (R-CA), Peter DeFazio (D- OR), Dick Swett (D-NH), John Mica (R-FL), Jay Kim (R-CA), Robert Andrews (D-NJ), Bob Stump (R-AZ), Peter Blute (R-MA), Howard Coble (R-NC), Fred Upton (R-MI), Nick Smith (R-MI), Mel Hancock (R-MO), and Jim Leach (R-IA). WHAT YOU CAN DO: 1. Write or call your members of Congress in support of H.R. 212. Tell House members that you want them to co-sponsor H.R. 212. Tell Senators that they ought to sponsor a companion bill to H.R. 212. Always request a written response when you write or call your members of Congress. The Congressional switchboard Phone number is (202) 224-3121. The addresses for your members of Congress are: Representative --------- Senator --------------- U.S. House of Representatives U. S. Senate Washington, DC 20515 Washington, DC 20510 2. Encourage House and Senate candidates to support H.R. 212, and to use congressional pay cuts as an issue in congressional elections. 3. Write letters to the editor of your local newspaper in support of H. R. 212. 4. Re-post this message to as many appropriate bulletin boards and on-line services as possible. 5. Encourage local citizen, taxpayer, community and other groups to support congressional pay cuts. The Congressional Accountability Project is a part of Public Citizen, founded by Ralph Nader. For more information about congressional pay cuts, or other congressional reform issues, send e-mail to gary@essential.org. We have a report, titled Congressional Aristocrats and Ordinary Americans, which may be useful in any congressional pay cut organizing or lobbying efforts you might undertake. [To subscribe to Congressional Reform Briefings send the following e-mail to listserver@essential.org: SUBSCRIBE CONG-REFORM YOUR NAME] Gary Ruskin Congressional Accountability Project | Internet: gary@essential.org