Washington, D.C. – Earlier this year, Ethics watchdogs and the media scrutinized a member of Congress from Hawaii for taking in additional income as a pilot for Hawaiian Airlines.
So you may be surprised to learn that Raphael Warnock receives a “parsonage allowance” that allows him to avoid income taxes on $89,000 in outside income.
Warnock’s salary as a U.S. Senator is $174,000 and since taking office, he has brought in an additional $120,000 from his duties at his church, and over $240,000 from a book deal. Not bad for a public servant.
Oh, and lest we forget, Warnock is currently embroiled in a legal fight with his ex-wife who claims he has failed to meet the financial needs of his children…
How Raphael Warnock Dodges Income Taxes
By Alana Goodman
Sen. Raphael Warnock (D., Ga.) has an unusual financial arrangement with an outside employer that allowed him to avoid income taxes on $89,000 in outside salary last year, according to tax experts.
Warnock, who works as the senior pastor at Ebenezer Baptist Church in Atlanta, said the church paid him $89,000 last year as a “parsonage allowance”—as opposed to regular outside income, which is subject to strict limitations for senators under federal law. Lawmakers are not allowed to receive more than $29,895 in outside income.
The news raises questions about whether Warnock is taking a tax break that’s unavailable to the vast majority of Americans. Republicans say Warnock wants to raise taxes, pointing to his vote for a spending package in August that some analysts claim would increase taxes on low- and middle-income earners. The senator has also faced criticism for his outside financial arrangements from his opponent, Republican Herschel Walker. The Walker campaign has slammed Warnock for doubling his annual salary since taking office, raking in $120,000 from the Ebenezer Baptist Church and over $240,000 for a book deal.
Tax experts said the Internal Revenue Service created the modern “parsonage allowance” provision in the 1950s as a tax break for religious leaders, who historically lived in tax-exempt church-owned parsonages but now often rent or own their own homes. The provision allows pastors and other clergy members to deduct their estimated annual housing expenses—including mortgage payments, lawn care, furniture, and pool maintenance—from their income taxes.
Warnock’s campaign declined to comment on whether he paid income taxes on his housing allowance.
Read More at the Washington Free Beacon
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