>
> On Sat, 14 Apr 2007, tfast at yorku.ca wrote:
>
> >> I've read many references to Shaha Riza's (Wolfowitz's girlfriend's) WB
> >> salary being tax free, both originally and after secondment. But no
one
> >> goes into details and I don't understand how.
> >
> > I believe all "tax free" means is that it is tax free at the source.
Once
> > the money is patriated it should be taxable.
>
> That was what I wondering. But this article in the WP:
>
>
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/14/AR2007041401564.html?referrer=emailarticle
>
> says he also secured quarter-million dollar tax free salaries for two
> cronies who were US citizens:
>
> <quote>
>
> Wolfowitz has clashed with the staff over pay packages and authority he
gave
> to aides Robin Cleveland and Kevin Kellems, whom he brought to the bank
from
> the White House, installed in senior positions and rewarded with
open-ended
> contracts and quarter-million-dollar, tax-free salaries, despite their
lack
> of development experience.
>
> <unquote>
>
> So now I'm really confused about the mechanics of this. Is getting your
> salary tax free SOP at the WB?
>
> Michael
All Diplomatic posts should be tax free at source. The question is how their home country treats that income. I do not know if the IRS taxes diplomatic salaries once patriated. You could probably just go to the IRS web site and find out.
Travis