Many of our Legislator's have experienced public outrage regarding the blatant violation of the State Constitution. To justify their actions, some Legislator's have claimed that they are not taking this money, rather donating this money to charity. Don't be deceived, as this still violates the Constitution, House and Senate Rules, and the Internal Revenue Service code.

Making donations from the unvouchered expense money to charity, it is inevitable that those that receive these funds will be organizations in the Legislator's district. Recipient to these funds will influence the members of these organizations. This influence will result in vote swaying, a form of politicking at taxpayer expense. Additionally, our Legislator's will also be eligible for a tax deduction from donating these public monies, then deducting this on their personal income tax returns.

The following are excerpts of letters exchanged from the Democratic Leader of the State House, H. William DeWeese and Voice PAC. This dialogue should help clarify the issue.

Voice PAC Question:

If donations to charitable organizations from the unvouchered expense accounts are made, since when is a charitable donation considered an expense? 7/30/96

Representative H. William DeWeese Answer:

I am not familiar with the technicalities of whether "donations" are considered "expenses" in any legal sense. However, it seems to me that any out-of-pocket expenditure is an expense, whether for charity or otherwise. 8/5/96

Voice PAC follow up:

Mr. DeWeese, as Democratic Leader of the State House, and twenty years as a Legislator, you should be familiar with allowable expenses. I have reviewed the "Expense Account Guidelines" as promulgated and amended as of May 1, 1993, from the Chief Clerk's Office, Ted Mazia. These guidelines do not contain language that would permit charitable contributions as an expense.

Please be advised that the Internal Revenue Service (I.R.S.) under Code 162 Section A, Trade or Business Expenses: Shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business including: 1. Salaries paid, 2. Travel, meals, & lodging 3. rental of equipment

Section 162 (b) Charitable contributions and gifts excepted: NO deduction shall be allowed under subsection "A" for any contribution or gift under which would be allowable as a deduction under section 170, titled "Charitable Contributions".

Both the House Rules, and the Internal Revenue Service have established these guidelines you seem to be unfamiliar with. Again, I look forward to your response. 8/5/96

Representative H. William DeWeese reply:

...Finally, I have not checked the IRS Code provisions regarding the disallowance of charitable contributions as expenses, _but_the_House_Rules_are_as_you_state_. Recognizing that many legislators like myself are not lawyers or certified public accountants, members are advised to seek the counsel of their own accountants regarding their individual circumstances and compliance with current law. 9/4/96

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