Honesty in governemnt bill

Economy
1

Honesty in government bill

Objective: to bring back confidence in our elected officials

  1. No elected congress person, senator or other elected official in the federal government or their immediate family (spouse, children, grandchildren, in-laws, and other close relatives)

  2. May increase their net worth by more than 20% or the gain of the total stock market index (whichever is greater) per year. These number are suggestions but the goal is to equal the net worth increase of what an average middleclass law abiding person makes in an average year through investments in a 401K, mutual fund, property or other investment.

  3. Net worth over this limit is paid as a 100% tax of some kind and recorded in a fund for just this purpose.

  4. A bi-partisan group could make exceptions for children transitioning from college to a job, marriage, or other obvious common life situations. For example a spouse of a congressperson who changed to a higher paying job or started employment after not being employed could take that job with no penalty if the group deemed it a normal situation. The same would apply to a single official who married a rich spouse, there would be no penalty until the following year when the 20% maximum would begin.

  5. After public service income from new opportunities such as speeches, lobbying, new careers and other opportunities which resulted from time in government, fame and name recognition would not be affected. For example an ex-president could give speeches at a high cost with no penalty.

  6. The IRS would be required to do a thorough investigation of each public servant.

Goal

  1. To remove the incentive for insider trading, bribes, money laundering, selling influence etc. Things that are easy to get away with and hard to prove and quite honestly help cause the average voter to lose faith in the congress, the senate and the presidency as a whole.

Specific examples

  1. Presidential children would be permitted to sell paintings at whatever price they wish but must turn over all profit over 20% of their previous year’s net worth until after their fathers presidency is over. This would reduce the image of bribes for influence.

  2. Spouses of senators or congresspersons would be able to invest in stocks, mutual funds and other investments, but profits over the total market index would have to be sold and turned over into a fund for that purpose, including non realized capital gains on stocks purchases while in office. When the market goes down this money would be returned as a rebate to the official the following tax year equal to a 20% profit. This would reduce the image the public has of insider trading.

  • The goal is not to bankrupt or punish a honest public servant or their family when the total market index goes down but to remove incentives to do what is illegal for regular voters. For example an honest senator who has a blind trust and earns a 20% profit in a year when the total index earns 25% would have to give the extra 5% to the general government fund, but this will be recorded for future reference. In a year when the market goes down 20% the sacrificed gains from previous years will be returned to a maximum of 20% of their net worth. At the end of their government service all money over the 20% average per year threshold would be lost and turned over the general government fund.

Possible concerns

  1. Elected officials would possibly be earning less money than if they remained in the private sector. This would be the definition of public service. The result could be fewer lower income excellent candidates running for office but would also reduce the number of dishonest candidates. Right now the impression is that many public officials are in it to get rich and since they are from other states or districts cannot be voted out of office easily.
  2. Family member would be affected who did not wish to run for office. This would be equivalent to the parent of a worker who has a son working in industry and learned of a breakthrough discovery and cannot invest in that company legally due to insider trading laws.
  3. Windfalls such as property value increases, inheritance, or other common life changes would be exempt through the bipartisan group.

Results

  1. Faith restored to the honesty of government employees.
  2. Reduction of influence pedaling or bribes.

Weaknesses

  1. Dishonest members could be promised super high paying jobs later as a reward for present influence pedaling.
  2. Bribes paid after a government official leaves their job.