* You surely remember this story from very late Friday afternoon…

Democratic U.S. Senate candidate Alexi Giannoulias didn’t have to pay any state and federal income taxes last year because of big losses tied to his family’s failed Broadway Bank, according to his campaign and tax returns released Friday.

The wealthy state treasurer stands to collect about $30,000 in refunds, but immediately announced he would donate the money to charities. Giannoulias sought to avoid having his tax situation become a campaign issue that could anger voters who make less money, pay their taxes and don’t have much sympathy for a rich guy getting a break.

Giannoulias reported $2.7 million in losses last year. That represents the 3.6 percent he owned in non-voting bank shares, said campaign spokeswoman Kathleen Strand.

You can try burying a story before the 4th of July weekend, but people like me won’t let you.

Also, what Giannoulias doesn’t say is that a charitable donation would give himself another big tax deduction for this year’s return.

* If you thought that Mark Kirk would tread a bit lightly on this topic since fellow statewide Republican candidate Bill Brady is basically in the same boat, you’d be wrong. From a press release…

“Alexi Giannoulias wants to raise our taxes but doesn’t pay any taxes himself. After costing the FDIC $394 million and wiping out $73 million in college savings, Illinois voters can no longer afford Alexi Giannoulias.”

In response, the Giannoulias campaign flat-out lied…

When asked for comment by TPMDC, the Giannoulias camp turned the story right back to Kirk’s own personal dirt, relating to his previous inaccurate statements about his military record. Giannoulias spokesman Matt McGrath told us: “It comes as no surprise given his record of mistruths, half-truths and untruths about his military record, but when he says Alexi wants to raise taxes, Congressman Kirk is lying. Again.”

Giannoulias doesn’t want to raise taxes? Then why did he tell the Illinois Education Association that he’s “said from Day One,” that Illinois “needs an income tax increase”? Here’s the video…

Giannoulias also told the Chicago Tribune that if he is elected he would vote to let some current federal tax cuts expire, which is, in effect, a tax increase…

The Bush tax cuts for the wealthiest Americans generated some of the largest deficits in U.S. history and contributed nearly $2 trillion to our deficits. Those tax cuts were unnecessary and irresponsible, and I would allow them to expire.

You can usually see the true character of a campaign during a crisis, and the Giannoulias campaign has totally failed the test this time.

* The Illinois Republican Party has called on Giannoulias to give the cash to the FDIC. From a press release…

The Illinois Republican Party today called on Alexi Giannoulias to send his $30,000 in tax refunds for 2009 to the Federal Deposit Insurance Corporation (FDIC) as a down payment on the $394 million loss the FDIC incurred after the collapse of Broadway Bank. […]

“Alexi Giannoulias’ unsafe and unsound banking practices ultimately led to the collapse of Broadway Bank and the loss of $394 million to the Federal Deposit Insurance Fund,” ILGOP Chairman Pat Brady said. “Alexi wants to raise our income taxes but doesn’t pay any income taxes himself. Instead of using his distasteful tax refund to win another tax write-off, Alexi should do the right thing and send his refund to the FDIC.”

Congressman Kirk just announced that he’s holding a press conference at one o’clock this afternoon. Kirk has a very real opportunity to turn this race around again. Charlie Cook recently moved this race from lean Republican to toss-up. It’ll probably go back to lean Republican again.

* My own opinion is that Giannoulias ought to write a check to the state and federal government equal to the amount owed on his state treasurer’s salary. It’s the same position I had on Bill Brady’s taxes.

Using private business losses to avoid paying taxes on an elected official’s government salary is just plain wrong. And it’s especially bogus during a period of time when the state can’t pay its bills and the federal deficit is soaring.