The news just keeps getting worse for Madison developer Terrence Wall, one of the Republican candidates vying to unseat Sen. Russ Feingold in November.First came news that the multimillionaire didn’t pay state income taxes in four of the last five years.
Then it was revealed that he didn’t pay state income taxes in 9 of the last 10 years.
Now, Wispolitics is reporting that Wall didn’t pay state income taxes in 12 of the last 15 years.
Wall’s campaign spokesman continues to assert to Wispolitics that “Terrence and his companies pay millions of dollars of taxes right here in Wisconsin” and that investment tax credits and depreciation account for his barely existent tax liability.
Umm… this is a problem.
Wall is worth between $58 million and $100 million, and earned more than $2.6 million in 2008-2009.
There’s nothing wrong with being successful, but is he paying his fair share? Or are Wisconsin residents underwriting his businesses while he reaps the rewards?
The campaign won’t release documentation showing that Wall’s companies have paid taxes in Wisconsin. And Wall’s personal tax liability has been pretty light, to put it mildly.
Yet Wall has attended an anti-tax Tea Party bonfire (here's some video) and his campaign platform is all about reducing the “tax burden on small employers and entrepreneurs.” Looks like he knows a lot about that, actually.
If Wall wants to survive the primary, he needs to stop the steady drip of bad news before it completely consumes his campaign. Release the tax returns—heck, just release the taxes paid by the companies, without detailed information that could aid their competitors. Wall is learning a tough lesson about being a public servant—the public has a right to know, especially when our money is at stake.
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What exactly would Wall's "fair share" be? If his companies did not make a profit, should he or they still pay some taxes? You can be assured that the Dept. of Revenue did not allow him to skip on the payroll taxes, which are an enormous expense for any business. Are you suggesting that depreciation is not a legitimate expense for businesses? Are you against tax credits for businesses? Or maybe just businesses owned by white men opposing Russ Feingold for a Senate seat? Maybe you can have Obey write that into the state tax codes...
This fixation on Terrence Walls taxes seems a bit backwards. His taxes are prepared by a well respected accounting firm complying with state law. He has paid every penny of taxes that he has owed. If you have a problem with his not owing any taxes, you should be addressing Governor Doyle and the demoractic-controlled state legislature. Your problem is with them, not with Terrence Wall. Terrence Wall doesn't make tax law, he just complies with the tax laws the democrats create. Your anger should be directed at the democrats who created the tax law - not the businessmen who comply with it.
All the legalistic gymnastics justifying Wall's free ride are attempts to evade simple fairness. If his personal income is $2.6 million and he pays zero in taxes, then everyone else is covering his share of the bill, whatever it might be. Just like hedge fund managers paying capital gains tax instead of income tax on earnings from other people's money, it's unfair and wrong on the face of it, and just another example of a systematic kleptocracy abetted by Republican and Democratic officals alike.
The point is not whether or not he legally dodged paying taxes. Well-respected accounting firms can find plenty of legal loopholes to help wealthy business owners avoid paying taxes.
Nobody is saying that he should go to jail. The bottom line is that I'm not going to vote for a guy who makes 2.6 million dollars, but weasles his way out of paying his fair share.
Roads need to be plowed, schools need to be staffed, garbage needs to be picked up.
@Stuart: So, you actually underlined the word LEGAL with regard to loopholes, then referred to Wall as having "weaseled" out of paying his taxes. Do you pay more taxes than you are legally required to? Or have you unilaterally decided that you pay your "fair share?" Do you understand that Wall's companies have paid tons in payroll taxes, employed WI citizens, but failed to make a proft, or perhaps had offsetting losses/profits- thus requiring no income tax burden for the shareholders? This article also does not define what "earned 2.6 million dollars" means. How was the money earned? Unrealized gains in stock values, maybe? As far as WI citizens "underwriting his business", he is employing WI citizens!! Investment tax credits and depreciation mean that he is investing in depreciable goods, also helping maintain employment levels. For god's sake, unless you people have a decent grasp of tax law and accounting, don't even attempt to comment on this tripe.