Tax day was about two weeks ago and chances are your state representative and senator paid a smaller percentage of their income in federal taxes than you did because of a little-known deduction giving them a generous tax break.
Your lawmakers can knock off $160 a day on their tax returns and they don't even have to prove they were working on that day!
Frank LaGrotta represented a western Pennsylvania State House district for 20 years.
When lawmakers took an early April break and LaGrotta returned to his Ellwood City home, April 15 felt like a holiday. He routinely deducted $8,000 to $10,000 a year from his federal taxes just because he was a state lawmaker.
"My tax accountant said every year,'Yeah, you could do this. This is fine. This is perfectly fine. It's not something you would be audited for,'" LaGrotta said.
Those he represented never knew.
"This is probably one of the deepest, darkest secrets of serving in the legislature," LaGrotta added.
Here is how the deduction applies in Pennsylvania. On Mondays, Tuesdays and Wednesdays, lawmakers are usually in session and they normally get a per diem for their expenses.
But Thursday through Sunday, when the legislature is not in session, they can still deduct $160 a day from their federal income taxes.
The only condition is lawmakers have to live at least 50 miles from the state capital, so that applies to all in our area.
Six area representatives claim they chose not to take the deduction. Two said they did but 15 of the 23 representatives we e-mailed and called did not bother to respond.
"They're reluctant to speak about it because no matter how it turns out, somebody's going to be critical of the fact that we get a tax break that maybe others don't get," said State Representative Garth Everett, a Republican from Lycoming County.
He is one of just two area representatives admitting taking the tax break. Everett said he deducted roughly $4,000 this year. He claims it kept him from paying taxes on the $14,000 the state reimbursed him for expenses.
"Your tax accountant would say you're an idiot if there's a tax deduction and you don't take it," Everett added.
"The federal law doesn't require them to take this deduction, it only allows them to take this deduction and those who have any ethical sense," said Tim Potts of the government reform group Democracy Rising Pennsylvania, "They aren't going to do this, and if they do it's a monumental example of hypocrisy."
He added lawmakers need to let voters know whether they take the deduction, then prove it.
"Release your federal income taxes. The governor does it. He's been doing it every year. I don't see why state legislators can't do the same," said Potts.
They don't have to because federal tax returns are confidential.
What Frank LaGrotta calls a deep, dark secret is something he said senior members fight to under wraps.
"Protect the institution. And what does that really mean? Shut up! Don't go home and talk about this," said LaGrotta.
He is a convicted felon after pleading guilty to corruption two years ago. He now teaches politics at a Pittsburgh area college and wants the open the lid to the tax deduction that has been in effect since 1980.
So what about the future of this tax deduction for state lawmakers?
It would take an act of Congress. Remember, this is a federal law.
Your lawmakers can knock off $160 a day on their tax returns and they don't even have to prove they were working on that day!
Frank LaGrotta represented a western Pennsylvania State House district for 20 years.
When lawmakers took an early April break and LaGrotta returned to his Ellwood City home, April 15 felt like a holiday. He routinely deducted $8,000 to $10,000 a year from his federal taxes just because he was a state lawmaker.
"My tax accountant said every year,'Yeah, you could do this. This is fine. This is perfectly fine. It's not something you would be audited for,'" LaGrotta said.
Those he represented never knew.
"This is probably one of the deepest, darkest secrets of serving in the legislature," LaGrotta added.
Here is how the deduction applies in Pennsylvania. On Mondays, Tuesdays and Wednesdays, lawmakers are usually in session and they normally get a per diem for their expenses.
But Thursday through Sunday, when the legislature is not in session, they can still deduct $160 a day from their federal income taxes.
The only condition is lawmakers have to live at least 50 miles from the state capital, so that applies to all in our area.
Six area representatives claim they chose not to take the deduction. Two said they did but 15 of the 23 representatives we e-mailed and called did not bother to respond.
"They're reluctant to speak about it because no matter how it turns out, somebody's going to be critical of the fact that we get a tax break that maybe others don't get," said State Representative Garth Everett, a Republican from Lycoming County.
He is one of just two area representatives admitting taking the tax break. Everett said he deducted roughly $4,000 this year. He claims it kept him from paying taxes on the $14,000 the state reimbursed him for expenses.
"Your tax accountant would say you're an idiot if there's a tax deduction and you don't take it," Everett added.
"The federal law doesn't require them to take this deduction, it only allows them to take this deduction and those who have any ethical sense," said Tim Potts of the government reform group Democracy Rising Pennsylvania, "They aren't going to do this, and if they do it's a monumental example of hypocrisy."
He added lawmakers need to let voters know whether they take the deduction, then prove it.
"Release your federal income taxes. The governor does it. He's been doing it every year. I don't see why state legislators can't do the same," said Potts.
They don't have to because federal tax returns are confidential.
What Frank LaGrotta calls a deep, dark secret is something he said senior members fight to under wraps.
"Protect the institution. And what does that really mean? Shut up! Don't go home and talk about this," said LaGrotta.
He is a convicted felon after pleading guilty to corruption two years ago. He now teaches politics at a Pittsburgh area college and wants the open the lid to the tax deduction that has been in effect since 1980.
So what about the future of this tax deduction for state lawmakers?
It would take an act of Congress. Remember, this is a federal law.
