do I really have to say it???
Posted on 05/09/2014 1:52:41 PM PDT by Kaslin
The family bicycle business of Wisconsin Democratic gubernatorial candidate Mary Burke has not paid state income taxes for more than three decades.
Burke’s father co-founded Trek Bicycle in 1976, out of a “red pole barn” in Waterloo, Wis. The company grew to become the largest bike manufacturer in the United States, and has been pivotal to Mary Burke’s case in her effort to oust Gov. Scott Walker (R.).
Burke mentions her role at Trek in nearly every campaign appearance. As head of Strategic Planning for Trek, Burke focused “every single day on improving the company’s bottom line,” according to her campaign website.
Trek, which claims its bicycles can “combat climate change,” has sales of roughly $900 million. However, according to records from the Wisconsin Department of Revenue obtained by Fox 6 in Milwaukee, Trek Bicycle has not paid net income taxes since at least 1982.
Fox 6 reported that the Burke campaign “doesn’t want to talk about the company’s record on taxes.”
According to the records, Trek files under “Subchapter S” of the tax code, which enables the company to avoid corporate taxes and pay as individuals at a lower rate.
Trek spokesman Eric Bjorling has defended the practice, saying that majority of businesses take advantage of the loophole. The news report noted that more than two-thirds of the 25 of the largest businesses in Wisconsin are not paying net income taxes.
“Trek has always complied with state and federal income tax laws,” he said. “S corps are the most prevalent type of corporation with 61.9 percent of all corporations filing a Form 1120S in 2003.”
During her campaign, Burke has indicated that she is open to tax increases, including for businesses, saying that she believes in people “paying their fair share.”
“I think if you look at Wisconsin … that our highest tax rates are certainly in line with other states, certainly higher than some and lower than others,” Burke said in November. “I think it’s not only the tax rate but other types of deductions and things. But I believe in people paying their fair share.”
When asked recently if corporate taxes are a “significant detriment” to businesses in Wisconsin, Burke said no, citing her family business.
“I will go back to my experience at Trek,” she said. “Trek has started from a couple of people to nearly 1,000 people, and has been successful, and thinks that Wisconsin is a great place to do business and has never considered leaving it. Do they feel the taxes need to change? I don’t think that’s on their top 25 list of things in making sure Trek Bicycle is a successful company.”
The company also received an $875,000 loan funded by Wisconsin taxpayers, while Burke was serving as Secretary of Commerce for the state.
Trek used the loan to build a new facility, and $392,300 of that loan was forgiven, according to Bjorling.
According to Fox 6, Burke herself paid more than $120,000 in taxes in 2012. However, the Milwaukee Wisconsin Journal Sentinel also reported that Burke avoided paying state taxes in the early nineties despite her claims that she began working for Trek in 1990.
The Burke campaign blamed the error on a “typo,” and said she did not begin working for the company until several years later.
The Wisconsin GOP has harshly criticized Burke for touting Trek on the campaign trail, but avoiding commenting on the company’s tax history.
“Mary Burke is quick to highlight her time at Trek as an essential part of her qualifications, but when asked to document specifics, her campaign remains silent,” said Joe Fadness, executive director of the Republican Party of Wisconsin. “Burke is applying for a job touting her past work experience, but her former employer refuses to confirm any of her claims. Voters deserve to know the truth.”
Fine by me...maybe she’ll prove they paid personal taxes...but I doubt it
Take away her basketball team!
I can't argue with you there.
do I really have to say it???
Colnagos are pretty harsh.
I'll keep my Somec SPX-Air in pearlescent paint thank you. :-)
tie me democrat down sport.........
Strange that no one is mentioning Trek’s CLOSE ASSOCIATION with serial perjurer Lance Armstrong! Surely such association with a near criminal would be trumpeted by the Democrats if this were a GOP supporting firm.
Subchapter S is a pass-through entity. The corporation does not pay the tax, the individual or individuals involved in the corporation do.
Am shocked to learn a Democrat could make such a high quality bicycle (still have it, it's in like new condition, oldest son now rides it on 40-60 mile bike outings on Saturdays and Sundays.) The frame alone still goes for $500-$700 on eBay. Wife paid almost $800 for it when she got it for me in '90.
Basically we’re hanging the left here in WI up on their own petard. Made even better by the fact that the far left here in WI was already not real big on Mary Burke because she was a deep pocketed business owner.
There are some Freepers who enjoy the circular Republican firing squad. It's like herding cats.
Now THAT is a MUCH bigger deal than the subchapter S filing. Especially since she was very much involved in the company.
I love bashing Demorats as much as the next guy, but they're a Subchapter S corporation that passes earning onto the individual owners who pay taxes on it as personal income.
There is nothing immoral, illegal or unethical here.
Just trying to make the low-information types think there's something fishy going on.
Oh, those Democrats love to SPEND tax money, but they hate PAYING taxes.
Too bad there are no dogs or cattle to shoot.
Taxes are for little people!
Your point of course is spot on, but here in the State of WI the left has made savaging WI businesses for not paying their “fair share” the cornerstone of how they go after Walker and that he puts businesses before people.
Basically we’re hanging the left here in WI up on their own petard. Made even better by the fact that the far left here in WI was already not real big on Mary Burke because she was a deep pocketed business owner.
Rules for Radicals - make others live up to their own policies, philosophies and ideals.
The Democrats are like the Roman legions. They lock shields, and hack the other side to death with lots of short stabbing swords.
The Republicans and the conservatives scream like the naked Germanic tribes, and attack willy-nilly.
If Scott Walker had pulled something like this, his sightless head would already be hanging from the WI Democrat legionary eagle.
“and $392,300 of that loan was forgiven”
This article is misleading, but I wonder if they paid taxes on the forgiven loan? The IRS says forgiven loans are income.
Trek used the loan to build a new facility, and $392,300 of that loan was forgiven
lol. Yeah! I want one o' dem things!!
lol. Yeah! I want one o' forgiveness thingies too!!
Oh yeah, special rules for special people. these sweet deals are dem only special.
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