Everybody’s Talking about Taxes. Do They Know Anything about Taxes?
From Rich Miller, re Bill Brady’s tax returns
“So, instead of fading away into the weekend, the story kept going strong. Editorial boards and columnists weighed in. Reporters started combing through what they had for more tidbits, and in the meantime they wrote stories about Brady’s refusal to provide them with copies of his returns as Gov. Quinn had done.”
Especially Rich Miller, who is marketing this story as both a testimonial to his lack of understanding of basic accounting principles or a partisan attack against the Republican candidate.
In Illinois, we have S type corporations and LLC’s both of which allow corporate losses to offset personal taxes. If you lose more money than gross, you don’t pay income taxes. It is not a loophole. It is a well established rule that income taxes are assessed against Net Income, not Gross Income.
You still pay State and Federal employment taxes, withholding tax for employees, sales tax, property tax, and any number of other taxes, and in the building industry permits, variances, and fees associated with the ability to run your business.
Running a small (or a big business for that matter) business is hard enough without the sniping of media types who are willfully ignoring tax accounting to smear an opposition candidate. If the media wants to change tax laws to hit gross income rather than net income, go ahead, but don’t fault a candidate for following the current law.
John Powers is the Chairman of the Editorial Board of the Chicago Daily Observer
image Hacking Shaquille O’Neal, or a Hack-a-Shaq