As many of you know, Russ Feingold and his cronies have been desperate to mislead the voters into thinking that Terrence has done something wrong when it comes to his income taxes. Feingold is slinging mud far earlier than he ever has before in order to hide from his votes for the nearly trillion-dollar "stimulus" boondoggle and the $1.5 trillion government health care takeover on Christmas Eve. And the liberal media, always happy to play along, has been ignoring the truth for weeks.
THAT ENDS TODAY. This morning, the Milwaukee Journal Sentinel published an independent review of Terrence's income taxes concluding Terrence has, "no legal problems related to his taxes." It exposes the Democrats' attacks as nothing more than political posturing, even quoting one UW-Madison professor saying, "it doesn't matter how completely legal this may have been."
Call me old fashioned, but I think the truth matters. Below you will find a detailed response to the lies from the Democrats, but here's the short version: the Wisconsin Department of Revenue, Terrence's own tax returns, his accountants at the respected firm of Baker Tilly Virchow Krause, LLP, and now the Milwaukee Journal Sentinel all agree that he's paid every penny he owes in personal income taxes and that his taxes were prepared in full accordance with the law.
But that hasn't stopped Russ Feingold and his friends from spreading lies and distortions. With recent polling showing more people disapproving of his job performance than approving of it, it's clear Russ Feingold is scared.
You can help combat the lies by donating $10 to Terrence's campaign today. We recently began airing astatewide television ad holding Feingold accountable for his vote for the ObamaCare debacle and your contribution can help us stay on the air even longer. You can help ensure Russ Feingold can't hide from his record.
In the article, Christian Schneider of the Wisconsin Policy Research Institute echoed what Terrence has been saying all along, "If the money these businesses would have paid to the government instead is re-invested back into their companies to create jobs, and therefore create even more taxpayers, it ends up being a net positive for the state."
Don't let Russ Feingold hijack this election with lies and distortions. We owe it to Wisconsin to fight for the truth. Now that Feingold's attacks have been exposed by the media for the shameful distortions that they are, it's time to get back to discussing the issues that affect the lives of hard-working Wisconsinites.
Let's Get Working!
THE REAL DETAILS… INCOME TAXES AND DELAWARE BUSINESS REGISTRATIONS
As the media continues to repeat untruths from the Democratic Party of Wisconsin that Terrence doesn't pay his taxes, please keep the following points in mind.
- Terrence has always paid every dime of income taxes that he's owed.
- The Department of Revenue has made clear that Terrence had no net tax liability in the years he has been criticized for not paying income taxes. So, it wasn't that he didn't pay income taxes, it was that he had no income tax liability to pay.
- Terrence has also released his tax returns showing that he had no net tax liability in those years.
- Baker, Tilly, Virchow, Krause, LLP, Terrence's tax accountants, have released a letter indicating that Terrence's taxes were all prepared in full accordance with the law.
Terrence and his companies pay millions of dollars in taxes each year.
- The untruths from the Democrats center around personal income taxes, but in the last three years, Terrence and his businesses have paid nearly $16 million in other taxes.
- This includes:
- $14.9 million in real estate taxes
- $694,000 in Medicare and FICA taxes
- $180,000 in sales and use taxes
- $77,000 in state unemployment taxes
- $21,000 in federal unemployment taxes
Terrence has always paid the income taxes he owes, but in some years has not owed anypersonal income taxes.
- The government often encourages certain behaviors by creating tax credits and deductions such as allowing home mortgage payments to be tax deductible, make owning a home more affordable.
- Just like millions of taxpayers in Wisconsin, Terrence receives tax credits and deductions that reduce the amount of personal income taxes he owes, sometimes reducing it to zero.
- Building Depreciation – When filing their taxes, business owners subtract their expenses from their revenues to determine profits, which are then taxed. When someone builds a newcommercial building, a substantial business expense, the tax code requires them to prorate that expense over 39 years, a process known as depreciation. In simple terms, if a business owner builds a $39 million building, he must deduct $1 million per year for 39 years from the revenues he earns on that building. Unless the revenues in any given year exceeded $1 million, there would be no net profit to tax, leaving zero liability. As the owner of more than 40 commercial buildings, Terrence must depreciate a large amount every year. Depreciation is merely a tax deferral, however, meaning the owner will pay considerable personal income taxes when the building is sold.
- Angel Investor Tax Credits – Act 255, signed by Gov. Doyle, gives a 25% tax credit to individuals who invest in startup companies and entrepreneurs. So, an individual who invests $100,000 in a startup company receives a $25,000 credit on their income taxes. Unless the individual owed more than $25,000 in taxes, his liability would be changed to zero. As the founder and largest investor in DaneVest Tech Fund, a multi-million fund that invests in startup companies, Terrence receives a substantial credit from Act 255 which reduces hispersonal income tax liability.
- Charitable Deductions – All taxpayers can receive deductions of various amounts for theircharitable contributions. As the founder and largest investor in the Wisconsin Foundation, acharitable organization that contributes hundreds of thousands of dollars to charitable causes, Terrence receives a substantial deduction on his personal income taxes. Terrence makes large contributions to the Boy and Girl Scouts, the UW Children's Hospital and the University of Wisconsin Foundation.
- Across Wisconsin, thousands of jobs have been created and thousands of people have been helped by charities when individuals and business owners utilize these tax incentives. Every new commercial building constructed in our state creates jobs, often hundreds of jobs, and provides space where small business owners can grow their businesses and create even more jobs. This is exactly why the government creates incentives for these kinds of developments, to encourage people with capital to make investments in job creating opportunities.
Registering a business in Delaware does not affect where it pays taxes.
- Often at the request of a lender or investor, Terrence has registered some of his companies in Delaware due to the better legal protections for business owners.
- Terrence has more than 100 separate companies registered in Wisconsin and only 16 registered in Delaware.
- All of the companies registered in Delaware are organized as Limited Liability Corporations (LLCs) or S-Corporations. Both of these types of companies do not pay separate corporate income taxes, but rather pass through their profits or losses to the personal income taxes of their owners, to be paid in the state where the owner lives.
- Since Terrence lives in Wisconsin, any income taxes owed by these companies would be paid here, not in Delaware.
Voters will have a choice between a candidate with a 20-year record of job creation and growing the economy, and a 28-year career politician who is part of the crowd that is recklessly spending tax dollars, creating a massive federal debt and trying to put government in charge of healthcare. Russ Feingold knows he compares poorly, and that's why he's falsely attacking Terrence.
Paid for by Terrence Wall for U.S. Senate, Inc. Eric McLeod, Treasurer, Copyright 2010