Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-01-17
Tax-Free Allowance
Voted by Senate Seen
Problem for Truman
President Connot Know
Whether He's Entitled to
Money as Pay Under Bill
By Davfd Laurence

ture Presidents much embarrass-
ment and set an example Of for
bearance and dignity by requesting
the House of Representatives tc
amend the bill just passed by the
Senate that gives him $4,000 tax
free expense allowance. No Presi-
dent hereafter will ever be sure
whether he can pocket that sum as
a part Of his income or whether
he is under moral obligation to
spend 1t only for a public purpose.
1t isn't as If President doesn't
have his expenses paid by the Gov
eminent. For out of the so-called
budget for the White House Of more
than 100000 a year, he gets the
following things:
/. A house with plenty of bed
rooms and baths, rent free, plus
servants-not a dime Of which ex-
pense he has to pay. All upkeep
and repair expenses are paid by
Uncle Sam. The maintenance
amounts to about $2so,ooo year.
2. All expenses for official enter
tainment.
3. "A fleet of automobiles and
chauffeurs for the personal Use of
himself and family. The Govern
ment pays for the upkeep and gaso-
line used
Gets Private Yacht.
4. A private yacht and crew that
costs the Government q large sum
annually to maintain.
S. A private airplane with luxury
accommodations and maintenance
crew that costs the Government
quite a sum annually to raintain;
6. A $4,000 allowance for travel
which can be used for political cam
paigning by the simple trick of call
ing the trips "non-political."
Now it is proposed to increase the
Presidents salary from $4,000 to
100000. This item would be tax
able and thus the President would
be just like anybody else insofar as
that sum- is concerned. Last year
he Melted approximately s4S 5000
after taxes because of the split in
come" rates of husband and wife
and under the proposed salary he
would net $4,000 after taxes.
But when 1t comes to the $50, 900
expense allowance, tax free, which
the Senate has just voted to the
President, no businessman has any
such privilege. The Government
scrutinizes closely expense accounts
In business and disallows them II
not spent for business purposes.
Even so, when the item is ruled to
be deductible, the Government bears
only SO per cent while the employer
bears 50 per cent Of the cost OF the
expense item. There are no tax
free expense allowances in private
business.
No Accounting Necessary.
The precedent in this case Is also
bad because the Senate voted that
a President didn't have to make
an accounting if he didn't want to
do 80. Does this mean he can add
the $4,000 to personal income?
Why put a President of the United
States in the embarrassing position
Of having to decide whether given
expenditure is one that he would
OF would not have made If he had
not been the Chief Executive?
II the House Of Representatives
wishes to put the matter OF a
Presidents salary on a realistic
basis, it can increase the present
amount to q total of $4,000 year
and make all Of this taxable just
as Is any executives salary, subject
to the usual deductions. This means
that at present rates, his net sum
after taxes would be about $4,000
or the equivalent Of a 100000 tax
able salary and $4,000 tax-free
allowance as the Senate has pro-
posed.
No element OF tax avoidance
would then be involved and the
precedent would be an honorable
one, though to be sure many OF
the so-called little people who
are supposed to have won the cleo
ton for Mr.. Truman will wonder
since when does "a man OF the
people" need 50 much money for
personal use the moment he wins
an election?
A President who cannot save
money on q s75 900 taxable salary
when all his rent and servants and
transportation are paid for by the
Government is not setting good
example of economy or thrift. Like
wise q President who accepts a tax
free allowance Of any kind and
asks the other citizens 70 pay taxes
Is not interpreting correctly the
basic principles Of Thomas Jeffer-
son on which the Democratic Party
was founded. Only kings and
princes are treated on any other
basis. It's a bad way to start of
the Fair Deal"
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