BOSTON — Some state lawmakers living more than 50 miles from Beacon Hill are using an unusual loophole that allows them to deduct as much as $311 per day from their federal income tax.
Federal tax law allows them to legally deduct up to that amount which, for some, could mean deducting their entire state salary.
Rep. Denis Guyer, D-Dalton, is among those who qualify for the deduction.
“I have paid, in some years, federal income taxes. Some years, I haven’t paid any,” Guyer told WCVB.
Federal law does not require legislators to travel to Boston or even prove that they’re working for taxpayers on any given day to claim the deduction.
Federal law does not require legislators to travel to Boston or even prove that they’re working for taxpayers on any given day to claim the deduction.
The law, passed by Congress in 1981, only requires the Massachusetts House and Senate to be “in session” on the days claimed. WCVB discovered the last time the Massachusetts Legislature prorogued — or was officially not in session — was in 1988.
Rep. Steven D’Amico, D-Seekonk, admitted that he paid no federal taxes in 2007 or 2008, saying he didn’t want to look “a gift horse in the mouth,” since his wife had recently died and he was struggling with medical bills.
WCVB contacted 54 Massachusetts legislators eligible for the lucrative tax deduction. The vast majority of those eligible — 45 legislators — ignored the inquiry. Nine confirmed they took advantage of the federal perk. Two said that in some years, they paid no federal taxes.
But since income tax filings are private records, Massachusetts voters may never know the truth.
“It’s fair because it’s the law and that is the federal government’s way of helping me cover transportation costs,” said Sen. Stanley Rosenberg, D-Amherst, who also takes the deduction.
All of the legislators interviewed not only admitted they took the federal deduction, but that they also accept large per diem reimbursements by the state for their transportation costs.
In 2008, Rosenberg claimed $7,680 in per diems from Massachusetts taxpayers. Rep. D’Amico claimed $3,600. Rep. Guyer received $11,234.
“Absolutely the effect of it is double-dipping,” said Michael Widmer of the Massachusetts Taxpayers Foundation. “It’s understandable there may be a per diem for travel from western Massachusetts into the Statehouse that the state provides. But then there is this huge benefit that the federal government provides on top of it.”
“I abide by the laws that are on the books today,” said Rep. William Pignatelli, D-Lenox. “And I’m not going to initiate (an effort to change) it.”
The federal tax deduction applies to legislators in all 50 states.
Seekonk’s D’Amico among Mass. lawmakers claiming lucrative tax deduction
Originally written by: By Janet Wu,
WCVB Political Reporter
Excerpt from article below:
“The federal tax deduction applies to legislators in all 50 states.”
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