Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

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Some legislators don’t owe taxes

At least four Wisconsin public officials did not have to pay state income taxes last year, one of who has not paid for more than a decade.

A review of tax filings of public officers around Wisconsin by the Milwaukee Journal Sentinel found six officials did not have to pay state income taxes in 2006: Tourism Secretary Kelli Trumble; state Sen. Lena Taylor, D-Milwaukee; state Rep. John Murtha, R-Baldwin; and state Rep. Mary Williams, R-Medford.

Each of these elected officials did not have to pay taxes due to financial losses each took in businesses they or their spouses owned.

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“If you happen to have a year where you bought a lot and expensed it, you can still be bringing in money but suffer a business loss, which — if that’s large enough — you quite legitimately can end up with zero taxes,” said Andrew Reschovksy, a professor of economics at the University of Wisconsin.

Trumble founded Sundra Inn & Spa in her hometown of Wisconsin Dells in 2003, which lost money. Prior to being named secretary, she sold her share. According to records examined by the Journal Sentinel, Trumble last paid state income taxes in 2001.

“It is accurate that she hasn’t paid (state income taxes) for the last handful of years,” said Sarah Klavas, director of marketing and communication services for the Department of Tourism. “She did file taxes meeting state and federal law obligations. She has also been very forthright about it.”

Taylor is a real estate owner in Milwaukee. She paid income taxes in 2006, but did not owe any money this year due to her lower income and donations to the state, which were tax exempt.

“The senator had a lower income bracket last year, higher personal exemptions and made significant donations to the state (of) simple office products in the district office of Milwaukee,” said her Legislative Director, Eric Peterson. “She didn’t utilize money state taxpayers paid for the supplies.”

Taylor also owns the property of many district offices for which she does not charge the state rent. Also, with the Democrats back in the majority and her run for county executive, Taylor took time off from her attorney caseload, earning less money in the fiscal year.

Murtha did not have to pay state income taxes due to his temporary retirement before entering public office.

“He sold a waste management business and now his family owns a roll-off garbage business that handles large construction projects in Baldwin, Wisconsin,” said Scott Rausch, legislative aide to Murtha. “He did not earn the income necessary to pay the (state income) tax.”

Williams has not had to pay state income taxes for over a decade, the longest to date. She owns three Hardee’s restaurants and a Happy Joe’s Pizza & Ice Cream parlor.

“This is very frustrating because we work hard,” Williams told the Milwaukee Journal Sentinel. “We work very, very, very hard, and we don’t live in a million-dollar house, and I don’t drive around in a Cadillac. So it’s not like I’m hoarding money somewhere. It’s just that this is the way the business is for us.”

Williams was unavailable for comment to The Badger Herald as of press time.

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