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Wisconsin Democrat’s Bike Business Hasn’t Paid State Income Taxes For Three Decades
Washington Free Beacon ^ | Many 9, 2014 | Elizabeth Harrington

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.”


TOPICS: Front Page News; US: Wisconsin
KEYWORDS: hypocrisy
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To: SgtHooper

Fine by me...maybe she’ll prove they paid personal taxes...but I doubt it


61 posted on 05/09/2014 2:45:33 PM PDT by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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To: Kaslin

Take away her basketball team!


62 posted on 05/09/2014 2:46:35 PM PDT by Walmartian (I'm their leader. Which way did they go?)
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To: DManA
I am upset with the giving, not the getting.

I can't argue with you there.

63 posted on 05/09/2014 2:46:51 PM PDT by DoodleDawg
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Comment #64 Removed by Moderator

To: Kaslin
do I really have to say it???

65 posted on 05/09/2014 3:07:52 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: Graybeard58
I have spent the majority of my life on two wheels. Racing and riding, sometimes( much younger) compiling over 12000 miles a year.
Year over year.
A 15000 bike may seem ridiculous, and Treks by the way are not my cup of tea, but riding a super bike, a road bike at 30 mph on a shallow downhill, on top of a big gear is the closest thing to heaven in motion that I have ever experienced.
Keeps me coming back for more.
66 posted on 05/09/2014 3:12:33 PM PDT by free from tyranny
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To: Fai Mao
Viva Colnago!

Colnagos are pretty harsh.
I'll keep my Somec SPX-Air in pearlescent paint thank you. :-)

67 posted on 05/09/2014 3:32:23 PM PDT by Carry_Okie (The tree of liberty needs a rope.)
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To: Paladin2

tie me democrat down sport.........


68 posted on 05/09/2014 3:53:19 PM PDT by mistfree (It's the media stupid!)
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To: Kaslin

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.


69 posted on 05/09/2014 4:00:04 PM PDT by SES1066 (Quality, Speed or Economical - Any 2 of 3 except in government - 1 at best but never #3!)
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To: Kaslin

Subchapter S is a pass-through entity. The corporation does not pay the tax, the individual or individuals involved in the corporation do.


70 posted on 05/09/2014 4:07:13 PM PDT by RegulatorCountry
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To: Kaslin
Oh my. I'm the proud owner of a Trek 1100 racing bike, had it since 1990. 21 speeds, aluminum frame, the entire thing weighs 21 pounds. I can pick it up with two fingers. Spent weekends bicycling 80-100 miles on it.

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.

71 posted on 05/09/2014 4:09:00 PM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: MNlurker
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.

There are some Freepers who enjoy the circular Republican firing squad. It's like herding cats.

72 posted on 05/09/2014 4:24:00 PM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: Mygirlsmom
"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"......

Now THAT is a MUCH bigger deal than the subchapter S filing. Especially since she was very much involved in the company.

73 posted on 05/09/2014 4:52:00 PM PDT by cookcounty (IRS = Internal Revenge Service.)
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To: Kaslin
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.

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.

74 posted on 05/09/2014 5:02:55 PM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: Kaslin

Oh, those Democrats love to SPEND tax money, but they hate PAYING taxes.


75 posted on 05/09/2014 5:38:00 PM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: demshateGod

Too bad there are no dogs or cattle to shoot.


76 posted on 05/09/2014 5:40:17 PM PDT by Hardastarboard (Please excuse the potholes in this tagline. Social programs have to take priority in our funding.)
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To: Kaslin

Taxes are for little people!


77 posted on 05/09/2014 6:27:51 PM PDT by Organic Panic
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To: E. Pluribus Unum
MNlurker wrote:

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.

78 posted on 05/09/2014 8:03:54 PM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: Mygirlsmom

“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.


79 posted on 05/09/2014 9:22:41 PM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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To: Mygirlsmom
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

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.

80 posted on 05/10/2014 1:32:07 AM PDT by HeartlandOfAmerica (An army of deer led by a lion is more to be feared than an army of lions, led by a deer.)
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