New Jersey Gov. Chris Christie, a potential 2016 Republican presidential candidate, allegedly failed to pay taxes on $380,000 in expense allowances he received from the state for official use, according to a report by New Jersey Watchdog.
After examining Treasury data and the governor's tax returns, Watchdog concluded that by failing to declare those expense allowances on their joint returns, "Christie and his wife, Mary Pat, avoided roughly $152,000 in federal income taxes over four years."
On top of Christie's $175,000 annual salary, the governor is given a $95,000 yearly expense account, described in the state budget as an "allowance to the governor of funds not otherwise appropriated, for official reception on behalf of the state, operations of an official residence, and other expenses."
According to Watchdog, Christie doesn't have to provide receipts, refund surpluses or disclose to the state or taxpayers how the money is used. Disclosing to the IRS, on the other hand, is required, Watchdog says.
"If an employee gets an expense allowance but is not required to provide receipts or return any surplus, the arrangement is deemed non-accountable. Non-accountable allowances must be reported as supplemental wages subject to income tax, plus taxes for Social Security, Medicare and unemployment insurance," Watchdog reported. "From 2010 to 2013, Christie declared his state salary minus his pre-tax contribution to a retirement account, but not the $95,000 annual allowances. Most of the family's other income came from his wife's financial service jobs at Cantor Fitzgerald, LP and Angelo, Gordon & Co. in Manhattan."
Christie's press office was quick to respond to the allegations, calling them "categorically false and irresponsible."
"The expense account, which has been provided to every governor in recent memory, is not salary and isn't kept by the Governor as income," Christie's office wrote. "It is a discretionary fund that is used for business purposes, including costs associated with official events at Drumthwacket, the official residence. Unused fund balances have traditionally been returned to the State treasury and not kept as income, and that has been the case for every year under Governor Christie. As such, it is not required to appear on his income tax filings, consistent with IRS rules."
Watchdog said that following the response, Christie's office refused to release records supporting its claims.
At least two other media outlets, Breitbart and National Review, have questioned Watchdog's claims as well.
