Clarification of Answer by
knowledge_seeker-ga
on
22 Oct 2002 09:06 PDT
Hi again cweigl-ga,
Sorry I missed on your answer there. The confusion was your use of the
term “income” -- very different from the word “asset.” I think we
need to clarify a couple of things and then I’ll do my best to address
your question. I understand that you may already be aware of these
distinctions, but I’m going over them so I can be sure we’re both on
the same page here.
INCOME is the money coming in. That is money you are earning, either
by way of being paid for work, interest, investment returns, running a
business, or selling something. That was the amount I addressed above.
ASSETS are everything you already own – house, car, stocks,
properties, bank accounts, etc. Assets are only converted to income if
you sell them.
LIABILITIES are any financial obligations, debts, or potential debts a
person has.
NET WORTH is what a person is worth if you take the value of all of
his/her assets and subtract the value of his/her liabilities.
You also used the term “MILLIONAIRE.” When a person is described as a
millionaire, this does not mean that he/she has an INCOME of a million
dollars a year. It also does not mean his ASSETS are worth over a
million dollars. It means he/she has a NET WORTH of over a million
dollars.
So, I hope that I understand you correctly in that you really want to
know the average NET WORTH of our elected officials in congress. If
so, that’s a whole different kettle of fish.
This is the absolute closest I can get to a real number --- According
to a 2000 Stanford study, in 1992 the median net worth of a
congressional representative was $365,000.
How Much Would It Take to Buy Out a Congressional Seat?
http://www.gsb.stanford.edu/research/reports/2000/groseclose.html
Take the Money or Run
http://www.gsb.stanford.edu/community/bmag/sbsm0002/faculty_research_buyoff.html
============================
FINANCIAL DISCLOSURE ISSUES
============================
Here is the difficulty ---
“High-level government officials of all three branches are required to
file financial disclosure reports. … In general, these reports require
the disclosure of most assets and sources of income; liabilities;
gifts; fiduciary or employment positions held; continuing arrangements
with former employers; purchases, sales and exchanges of certain
assets; and, for first-time filers, the names of their major clients
if they had been engaged in providing services for a fee prior to
government employment….”
“The U.S. financial disclosure system, however, is not designed to
detect illicit enrichment; it DOES NOT REQUIRE DISCLOSURE OF NET
WORTH.” [emphasis mine]
http://usinfo.state.gov/journals/itdhr/0800/ijde/ley.htm
------------------------------------------
RULE XXVI - Financial Disclosure
http://www.house.gov/rules/RXXVI.htm
-------------------------------------------
Theoretically, a person could examine the individual financial filings
for all 535 representatives and calculate at least an approximation of
average net worth. But, apart from the exorbitant amount of time that
would take, the logistics are not all that straightforward --
THE U.S. SENATE: Government-by-Millionaires
“Since senators are only required to list their personal finances in
broad ranges - $250,001 to $500,000, for example - it is difficult to
determine a member's precise net worth. But previous surveys have
shown that nearly half of the 100 senators are millionaires.”
FREE INTERNET NEWS – “THE U.S. SENATE: Government-by-Millionaires”
http://www.worldfreeinternet.net/news/nws171.htm
-----------------------------------------------
Going back to your original statement regarding INCOME. The only way
to accurately determine how much a representative claims in personal
income, you’d have to have access to his/her tax returns. Right now
congress does not require representatives to make their tax returns
public (though some do voluntarily). The financial disclosure
requirements are in broad categories making income impossible to nail
down --
“The source and type of income which consists of dividends, rents,
interest, and capital gains, received during the preceding calendar
year …and an indication of which of the following categories the
amount or value of such item of income is within…”
(vi) greater than $50,000 but not more than $100,000,
(vii) greater than $100,000 but not more than $1,000,000,
(viii) greater than $1,000,000 but not more than $5,000,000”
http://www.house.gov/rules/RXXVI.htm
Finally, on that same page scroll down to:
“ (2) A reporting individual need not report the holdings of or the
source of income from any of the holdings of ..”
… and you will find an entire list of income sources that members of
congress are not require to disclose.
So, as you can see, exact figures for income or net worth for our
elected officials is not really available in a straightforward, easily
accessible format.
I hope what I’ve explained has been clear for you and that the
additional information proves useful. Here is one other site that I
have found helpful --
INVESTOR WORDS
http://www.investorwords.com/cgi-bin/getword.cgi?497&blind%20trust
Thanks for your question and thank you for giving me an opportunity to
clarify it for you.
Regards –
-K~
