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October 25th, 2008

Palin grabs her own coat on the trail

Posted by: Reuters Staff

SIOUX CITY, Iowa - Republican vice presidential hopeful Sarah Palin took a shot at her own party while campaigning solo in the battleground state of Iowa on Saturday.

Poking fun at the Republican National Committee for buying her and her family over $150,000 worth of clothing for the campaign, she said when she stepped off the plane in a chilly Iowa that she’d grabbed “my own jacket”.

Her reference to the controversy drew applause and whistles from the crowd.

In Des Moines Palin argued that her running mate John McCain, was more “worthy” of the presidency, saying he was “someone who inspires us with heroic and trustworthy deeds and not just words.” 

According to Palin, the election will go “down to the wire” and Iowa’s seven electoral voters are crucial to McCain’s candidacy. “So Iowa, I would ask you? Will ya hire us? Will ya send us to Washington to shake things up and clean things up?” Palin asked. The crowd cheered, clapped, whistled and pounded together the “thunder sticks” the campaign had handed out.

“Well, it’s a deal because we want the job,” Palin said when the crowd wound down. However, she and McCain are trailing in recent polls for the Midwest state, including down eight points in the latest Rasmussen survey released on Friday.

Click here for more Reuters 2008 campaign coverage.

- Reporting by Kay Henderson of Radio Iowa, writing by Jeremy Pelofsky

- Photo credit: Reuters/Brian Snyder (Palin at a rally in Ohio earlier this week)

October 22nd, 2008

A taxing question on Palin’s clothing allowance

Posted by: Donna Smith

Sarah Palin’s $150,000 clothing allowance from the Republican National Committee raises questions about whether John McCain’s vice presidential pick will have to pay federal income taxes for the items she bought with the money.  palin2.jpg

Maybe, according to one congressional tax expert.

The McCain campaign says the clothing, which according to Politico.com was purchased at stores like Neiman Marcus and Saks, will go to charity after the campaign.

If everything is handed over to charity once the last ballot is cast, Palin could argue that she never actually owned the clothes and that they were more like costumes or uniforms used for work, the tax expert said.

But anything she keeps would be considered a payment and its value could be taxed as income.

Generally clothing required for work that cannot also be used outside the workplace, such as a nurse’s uniform, is a deductible expense. Any clothing that can be used off the job as well as on the job cannot be deducted.

Photo credit: REUTERS/Steve Marcus (Palin at a rally in Henderson, Nevada Oct. 21)