TAX NEWS - 2010

US Tax: Quinn criticizes fellow Democrat Giannoulias on tax issue

For weeks, Democratic Gov. Pat Quinn has been hitting his Republican opponent Sen. Bill Brady for not paying any income taxes after losses sustained by his real-estate development company.

Today, Quinn dragged into the mix Democratic U.S. Senate hopeful Alexi Giannoulias after the wealthy former banker reported getting an income tax refund following losses at his family's now-defunct Broadway Bank.

Quinn has maintained that anyone receiving a public salary should pay taxes. Giannoulias is a first-term state treasurer.

"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.

"I think a good charity would be the people of Illinois. We have a lot of good causes," Quinn said.

Quinn and the Democrats found themselves in the position of dealing with the tax issue a day after Republican U.S. Senate candidate Mark Kirk did the same. Kirk said it wasn't right that Brady, the Republican governor candidate, didn't pay taxes.