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* A day after Republican Congressman Mark Kirk took Bill Brady to task for not paying his taxes, Gov. Pat Quinn returned the bipartisan favor and dinged fellow Democrat Alexi Giannoulias for not paying income taxes…
“I believe in the principle that if you get a public salary, you are an elected official, you get a public salary, you should pay income taxes to the state and the federal government. I think that’s a fundamental principle that I believe in,” Quinn said.
Quinn avoided referring to Giannoulias by name. But when reporters asked Quinn whether there was a difference between the tax situations of Brady and Giannoulias, the governor said, “My principle: I don’t think there should be a Brady loophole where people who make millions of bucks then end up paying no taxes whatsoever.”
Moreover, Quinn said, “I think that voluntarily those that are in high office should make it their business to pay taxes” to help fund the military and veterans at the federal level and local schools at the state level.
In his most pointed criticism of Giannoulias, Quinn indicated that instead of the treasurer sending his $30,000 income-tax refund check to charity, it should go to the state, which is facing a $13 billion deficit and $5 billion in unpaid bills.
* Meanwhile, a couple of local bloggers hit Mark Kirk for his sweet tax break today…
But if he is going to slam Giannoulias for simply following the tax code, Kirk should remember that he has also benefited handsomely from tax breaks available to certain homeowners. Ellen Beth Gill reminded us of this fact last night
From Ellen’s blog…
Kirk gets a large tax break for having purchased a rehabbed property that was sold by the federal government on the cheap to developers who turned it into housing for the wealthy.
While just about everyone else in Lake County is crushed under a huge property tax burden (sometimes over $8,000 per year for a modest house and over $4000 per year for a small condominium), Kirk pays about $700-$800 each year for a pretty swank place in Ft. Sheridan. Now, Kirk will argue that he’s entitled by law to that tax reduction, but isn’t Giannoulias also legally entitled to his tax losses? […]
I haven’t noticed Kirk donating the difference between what he pays in property taxes and what he normally would pay to the local schools. They need the money badly too.
More from Progress Illinois…
The short version is that Kirk and his neighbors used a very clever interpretation of Illinois’ historical preservation tax break to lower the assessed values of their Highland Park homes by about 90 percent.. The total savings [of the tax break between 2003 and 2007] add up to more than $35,000 during that period:
posted by Rich Miller
Wednesday, Jul 7, 10 @ 4:19 pm
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a very clever interpretation of Illinois’ historical preservation tax break to lower the assessed values
But, if it’s for open space, then its totally ok.
This story is SO 2003!
http://articles.chicagotribune.com/2003-11-01/news/0311010107_1_open-space-open-space-country-clubs/3
Comment by Pat collins Wednesday, Jul 7, 10 @ 4:25 pm
It’s days like these when I wonder just how it is all these politicians just coincidentally happen to fall into so many of these (often-legal) swell deals. And then I imagine what their world must be like.
Whether they are getting 90%-off property taxes.
Or not having to pay income taxes.
Or permanently-low property tax assessments.
Or generous, low-interest VIP mortgage and loan programs.
Or free scholarships to expensive universities.
Or free trips to tropical paradises for junkets.
Private planes to fundraisers in far-away places.
Christmas cards filled with cash from your underlings.
What a wonderful world it would be…
Comment by George Wednesday, Jul 7, 10 @ 4:32 pm
Pat Collins, where were Kirk and his neighbors included in that Trib article?
Comment by Rob_N Wednesday, Jul 7, 10 @ 4:35 pm
Also, with that district spending USD 8200 per pupil, I wonder just how “needy” the district is of those funds.
Bottom line - the tax break is for “preservation”, a good thing, unless someone you dont like takes advantage of it.
The Hypocrite meter pegs this one at 85%
Comment by Pat collins Wednesday, Jul 7, 10 @ 4:36 pm
They were not, but it was about a very similar tax break, and the open space break was used by several rich people in the that area who had larger (15+ acres).
Comment by Pat collins Wednesday, Jul 7, 10 @ 4:37 pm
So governor Quinn thinks that Alexi giving his tax return to charity but he is perfectly ok with 20% raises for his staff with a 13 billion dollar deficit? LOL
Comment by huh Wednesday, Jul 7, 10 @ 4:39 pm
You should fact check. the house is not swank, it’s a standard highwood middle class dwelling. I am sure if the congressman used coupons to buy something at a jewel he would be attacked for paying less than his fair share too.
He also btw negotiated a deal with dod so that school districts that educate kids that live on the fort would get the full amount owed to them and I am sure was part of congressman porter’s team that negotiated the transfer of the fort to highland park from dod and preserved some of it from development. If we are going to hit the congressman we should have the full story.
In contrast to the last senator elected to the seat up for election tony rezko was not involved.
the 35k is 1,000th of what it cost the feds to bail out alexi’s bank.
thanks.
Comment by shore Wednesday, Jul 7, 10 @ 4:42 pm
HATE THE LAW. Don’t hate THE LAW ABIDING CITIZEN.
Comment by Downstater Wednesday, Jul 7, 10 @ 4:45 pm
shore… maybe I missed it, but where did you point that the basic point of the Kirk/property tax story is true? That Kirk took advantage of the law to get a very nice tax break, just as Alexi did?
Facts much?
Comment by dave Wednesday, Jul 7, 10 @ 4:47 pm
I’ve been all through Ft. Sheridan. The development is very swank other than current military housing which is not the part in which Kirk lives. A couple of years ago, I was with some friends looking to move there. Despite their upper middle class economic status, they couldn’t afford it by a longshot. A lot of it looks average on the outside because those buildings are old, but they are fantastic on the inside. Have to hand it to the developer. They did a great job. One unit even had a dog washing room. No cat washing room though.
Comment by Ellen Beth Gill Wednesday, Jul 7, 10 @ 4:55 pm
I get a huge smile on my face when Mark Kirk has political problems. This man is the worst candidate in the history of the republican party. He stands for none of the party principles, lies about his military record, uses loop holes to not pay taxes, and I’m still not sure if he was a school teacher or not. If he loses this election I will have a glass of campaign and a Brazilian cigarette on my back patio.
Comment by Living in Oklahoma Wednesday, Jul 7, 10 @ 5:03 pm
@Pat Collins:
We at Progress Illinois never said that the historic preservation tax break is a bad thing, nor that Kirk shouldn’t have taken advantage of it. (Though he and his neighbors did figure out a way to freeze their assessments at a much lower level than most folks who apply for the program.)
Back in 2008, we pointed out that it was hypocritical for Kirk to be opposing federal tax credits for first-time homeowners while enjoying the benefits of this homeowner tax break. If it hadn’t been for his voting record, we probably would have left the story alone.
The reason we brought it up again today is because Kirk is now suggesting Giannoulias, as a public official, should’ve disregarded his tax code status in order to avoid a refund. By that logic, shouldn’t Kirk have gone out of his way to pay property taxes on the full assessed value of his home?
Comment by Josh Kalven Wednesday, Jul 7, 10 @ 5:13 pm
If Kirk’s property taxes are so low, he must have used Madigan’s law firm.
Comment by Da Ship Be Sinking Wednesday, Jul 7, 10 @ 5:15 pm
Shore, when did he negotiate the deal compensating school districts for lost revenues when educating kids from tax exempt government property.
I worked in Glenview 15 years ago and the govt. reimbursed the schools there.
Comment by Jimbo Wednesday, Jul 7, 10 @ 5:51 pm
Hard to Believe???
Comment by tobor Wednesday, Jul 7, 10 @ 5:54 pm
Ft. Sheridan is just south of my precinct. I’ve walked it door-to-door many times. It has a nice mix of housing, from the very “swanky” to the “not so swanky,” excluding military units, of which there are now only a handful, compared to its hey day. Kirk lives in a “not so swanky” part of Ft. Sheridan.
Ft. Sheridan dates back to the Civil War, including some buildings and the marching and training areas for you history buffs.
Tell you what snarky Democrats. Take away the historical district tax break from ALL the property owners in that area that qualified for it. Be Fair!
LOL!
Comment by Louis G. Atsaves Wednesday, Jul 7, 10 @ 6:16 pm
In all fairness, as Kirk has said, one of the reasons he gets the break is that it contains the Time Machine he uses to track Dr. Evil through the decades.
His Shaguar is in the garage, as well.
Comment by wordslinger Wednesday, Jul 7, 10 @ 6:57 pm
wow, now it is not good enough to follow tax codes?
Comment by Wumpus Wednesday, Jul 7, 10 @ 7:28 pm
According to the news stories, Quinn claimed charitable deductions on his federal return and claimed a federal deduction and an Illinois credit for his real estate taxes, reducing the tax on his Illinois state salary. He’s a hypocrite for blasting others for using legitimate deductions and credits to reduce their taxes.
Comment by Justme Wednesday, Jul 7, 10 @ 8:12 pm
Ummm, 8000 per student is VERY low. Especially in a high-cost area like the North Shore.
My question, “Shore” - If the transfer from the naval base was set up by Porter and his staff, isn’t it fishy that his chief of staff just so happened to be right there to take advantage?
Comment by ok Wednesday, Jul 7, 10 @ 8:20 pm
Plenty of retired teachers pay no income taxes yet are first in line at the handout window. Why not let them pay for a change?
Comment by Sueann Wednesday, Jul 7, 10 @ 8:37 pm
‘Meanwhile, Democratic Governor Pat Quinn has scaled back his criticism of Bill Brady over the senator’s zero tax bill. But rather than drop the issue entirely, Quinn’s focusing on how his opponent made public his taxes, calling it a “three hour peek-a-boo session.”‘ —WBEZ 91.5
http://www.chicagopublicradio.org/Content.aspx?audioID=43042
For Quinn’s sake I hope that this report isn’t accurate because didn’t he himself only allow the media a “three hour peek-a-boo session” of his 2008 taxes?
“In his most pointed criticism of Giannoulias, Quinn indicated that instead of the treasurer sending his $30,000 income-tax refund check to charity, it should go to the state, which is facing a $13 billion deficit and $5 billion in unpaid bills.”
I still don’t like Alexi G, but this was not good a good move on Quinn’s part.
All in all, I guess I am just happy/relieved that Brady, Plummer and Alexi G. even bother to file their taxes. I’m not so concerned about them not releasing their tax records, or have legitimate (read: legal) reasons for not paying taxes. As long as they file, preferably on time, and do not (try to) cheat, then they’ve done their part—they’ve done their civic duty as Americans, so far as the income tax issue is concerned, IMHO.
Comment by Will County Woman Wednesday, Jul 7, 10 @ 8:40 pm
===what a wonderful world it would be.===
Well said George.
Comment by 47th Ward Wednesday, Jul 7, 10 @ 10:22 pm
I think I’d have to say a pox on all their houses (Quinn, Brady, Alexi G and Mark Kirk (Twerp, I call him)). They’re all lousy candidates in one way or another. I adhere most to Brady’s views, but he’s been clumsy. Kirk is a horrible man, but we can’t have an O rubber stamp that Alexi G’d be.
As far as not paying taxes: Brady and Alexi G followed the federal and state tax codes and incurred business losses that exceeded their government salaries. Thus, there were no tax obligations. The issues related to Alexi G would seem to have to do with whether his bank’s failure (thus his income loss) was the result of unethical or simply unwise lending practices. It’s rather clear that Brady’s business suffered from the downturn in real estate due to the mortgage bubble popping–b/c of bad lending by banks like Alexi G’s. There is no evidence that Brady’s business engaged in unwise or unethical business practices.
Is any one suggesting that these men violated the tax codes or engineered a business failure to avoid taxes? That’s pretty tricky to do; even more so for some one running for statewide office.
Now, the real issue seems to be public officials taking taxpayer salaries while also pursuing private interests. A part-time legislator should be able to run a business while legislating. But the legislator’s salary ought not be exhorbitant. A statewide constitutional officer, such as Treasurer is rather full time and does not permit active outside business activities, I would presume. But, Alexi G should not have to sell his interest in any outside business, which he didn’t do.
Unless we’re going to prohibit any outside financial interests by public officials, there is the risk that some may experience business losses in some years, especially during economic downturns when many businesses suffer. In this bad economy, spawned by the mortgage mess, not surprisingly, two public officials with interests in banking and construction incurred heavy business losses and thereby didn’t pay taxes in recent years. That’s why a bad economy is bad for govt. No tax receipts. Spur economic development and get tax revenue. The liberated market is good for government coffers, too.
Comment by Peggy SO-IL Thursday, Jul 8, 10 @ 12:09 am
This is one of the many reasons I’ve been saying not to harp on candidates for tax deductions/credits: where on earth does it stop? Every candidate took deductions. As mentioned above, I’m sure Quinn took some deductions. Which ones are they allowed to take? Are personal exemptions allowed? Child credits? Homeowners? Business losses? Charity donations? Lifetime Learning Credit? This has gotten ridiculously silly very fast.
They should just do what they’ve BEEN doing: handing their taxes to their accountants. The only thing I would suggest is running your banks/businesses well enough that they don’t fail. That deduction is mighty hard to look at, since it is jobless employees and federal bailouts that are cleaning up your mess. Even then, is is more the incompetence than the tax savings that bother me.
Comment by Liandro Thursday, Jul 8, 10 @ 2:05 am
Tell you what snarky Democrats. Take away the historical district tax break from ALL the property owners in that area that qualified for it. Be Fair!
@Louis G. Atsaves - please point out where anyone said that the tax break should be taken away.
Comment by dave Thursday, Jul 8, 10 @ 7:47 am