The Congressional Income Alignment and Public Service Reform Act

Economy
1

Title: The Congressional Income Alignment and Public Service Reform Act

Preamble:
Recognizing the need to align the financial incentives of Members of Congress with the economic realities of their constituents and to ensure genuine public service, this Act establishes a policy to cap congressional salaries at the median income of their constituents, with provisions for repayment of surplus earnings and equitable taxation of additional income.

Section 1: Short Title
This Act shall be known as the “Congressional Income Alignment Act.”

Section 2: Congressional Compensation Limited to Constituent Median Income

(a) Base Salary Cap:

  1. The annual compensation of each Member of Congress shall be capped at the median household income of the district or state they represent, as determined annually by the U.S. Census Bureau.

  2. Any federal salary or benefits exceeding the median income shall be withheld and treated as repayable to the federal treasury until all additional income is accounted for, as described in Section 3.

Section 3: Repayment of Additional Income

(a) Repayment of Salary Overages:

  1. Any additional income earned by a Member of Congress from sources such as investments, speaking fees, or book royalties shall be remitted to the federal government until the amount repays the difference between the capped salary (as determined in Section 2) and the full federal salary allocated for their position.

  2. This repayment shall be calculated on an annual basis, with all owed amounts reconciled by April 15 of the following year.

Section 4: Taxation of Additional Income Beyond Salary Repayment

(a) Highest Tax Rate for Additional Income:

  1. Once the federal salary has been repaid under Section 3, any additional income earned by Members of Congress shall be taxed at the highest marginal tax rate applicable to single taxpayers.

  2. The taxation shall be applied to all sources of income, including capital gains, dividends, and other earnings, ensuring that Members contribute proportionally to public funds.

Section 5: Public Transparency

(a) Annual Income Disclosure:

  1. Members of Congress shall file an annual public financial report detailing their earnings, salary repayments, and taxes paid under this Act.

  2. The report shall be published on the official websites of the U.S. House of Representatives and Senate for public review.

Section 6: Enforcement and Penalties

(a) Enforcement Mechanism:

  1. The Congressional Budget Office (CBO) shall oversee compliance with this Act, including verifying annual income disclosures and calculating required repayments.

  2. Any Member found in violation of this Act shall be subject to a fine equal to double the unpaid or unreported amount.

  3. Repeated violations may result in referral to the Ethics Committees and potential removal from office, subject to constitutional requirements.

Section 7: Effective Date

This Act shall take effect on January 1 of the year following its enactment and apply to all income earned and reported thereafter.

Justification:
This Act ensures that Members of Congress experience the economic realities of the constituents they serve, fostering greater empathy and understanding of their challenges. By requiring repayment of surplus salary and taxing additional income at the highest rate, the Act emphasizes public service over personal enrichment, reinforces the principle of equitable contribution to public funds, and promotes transparency and accountability in governance.