Nixon kept his pension because he resigned and wasn't impeached

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Nixon to Get $60,000 Annual Pension And Up to $96,000 for Office Expenses By B. Drummond Ayres Jr. Special to The New York Times Aug. 10, 1974 Credit...The New York Times Archives See the article in its original context from August 10, 1974, Page 5Buy Reprints New York Times subscribers* enjoy full access to TimesMachine—view over 150 years of New York Times journalism, as it originally appeared. SUBSCRIBE *Does not include Crossword-only or Cooking-only subscribers. About the Archive This is a digitized version of an article from The Times’s print archive, before the start of online publication in 1996. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. WASHINGTON, Aug. 9—President Nixon acquired considerable wealth while in the White House, but he left Washington with his fortune greatly diminished and his economic future in some doubt. When he departed this morning he said he was not wealthy man, then added, “at the present time, I've got to find a way to pay my taxes.” Taxes—specifically, tax deductions — helped Mr. Nixon amass a fortune of more than $1‐million in office. And taxes —specifically, disallowed deductions—helped deplete the fortune by hundreds of thousands of dollars. As for the future, the former President has a number of bright economic prospects, But some problems loom. ADVERTISEMENT Continue reading the main story In yielding his office, Mr. Nixon gave up a $200,000‐a‐year salary, plus $50,000 for office expenses. But by leaving voluntarily, he was assured of receiving an annual Presidential pension of $60,000, plus up to $96,000 yearly for office and secretarial expenses incurred in retirement. Dig deeper into the moment. Special offer: Subscribe for $1 a week. Furthermore, Mrs. Nixon would be eligible to receive a $20,000‐a‐year widow's pension. Had Mr. Nixon been removed from office by the Congress, all pension and expense payments would have been forfeited. If the former Presidents chooses to write his memoirs—most retired chief executives have done so—he can go a long way toward assuring himself financial security fur the rest of his days. In the book industry, it is widely assumed that the bidding for such a work would begin at more than $1‐mililon. However, no publisher is known to be dealing with Mr. Nixon at this point. Then there is the matter of the former President's personal papers and mementos. They are worth hundreds of thousands of dollars. But Presidents traditionally have placed them in libraries rather than sell them. Editors’ Picks Selling Art to Pay the Bills Divides the Nation’s Museum Directors The Costly, Painful, Lonely Burden of Care Should the American Theater Take French Lessons? Continue reading the main story ADVERTISEMENT Continue reading the main story And in Mr. Nixon's case, there is dispute whether he should be permitted to retain possession. Some members of Congress, intent on a full Watergate disclosure are talking about passing a law that would make the Nixon papers the property of the people of the United States. It was not clear as Mr. Nixon departed Washington just how much he was worth or how much he owed. But he obviously had problems. Last winter, he set his net worth as slightly more than $1‐million, about half in real estate and the rest in cash. Since then, he has had to use his funds to pay almost $300,000 in back taxes, interest and penalties. That payment followed a finding by the Internal Revenue Service that Mr. Nixon had failed to report some income and had taken unwarranted deductions on a gift of personal papers to the National Archives. The I.R.S. also found that Mr. Nixon had underpaid his 1969 taxes by $148,080. However, tax officials said the payment need not be made because the statute of limitations on nonfraudulent underpayments had expired. Mr. Nixon promised to pay up, nevertheless, but had not done so by this morning. The President has been unable to make payments on the Florida and California waterfront homes he acquired for more than $1.5‐million soon after he was elected to his first term in 1968. Six‐Month Extension Last month, almost $250,000 was due on the San Clemente estate. It has a number of controversial improvements made at taxpayers' expense but Mr. Nixon has indicated he will leave it to the Federal Government upon his death. He came up with slightly more than $50,000 for the payment and was given a six‐month extension. ADVERTISEMENT Continue reading the main story From what else is known of Mr, Nixon's finances, it appears that he still owes more than $200,000 in real estate payments. What is not known is the extent of his reserves. He will almost certainly need large reserves of cash should he face further legal difficulties because of Watergate. The cost of his impeachment defense was borne by the Federal Government, but he probably will have to pay any future legal fees. Mr. Nixon is a lawyer and presumably can now resume making a living at that profession—if he encounters no further legal problems that might lead to disbarment. Before he became President, he practiced in New York, reportedly for a salary in excess of $100,000 a year. Last November, however, he seemed to rule out any return to law. When some editors asked him what he planned to do after completing his second term, he said: “Among these I will not do —I will not practice law; I won't go on any board of directors. “I will tell you after being President, you never want to sit at any other end of the table. Being on a board of directors—it pays well—but it is rather boring, not for former Presidents.” Mr. Nixon said he would make no public speeches in retirement but might try “a little writing.” He said he had an interest in “bettering the political process.”