* Alexi Giannoulias was hit on Friday over a possibly huge tax refund for his family…
The family of Democratic U.S. Senate nominee Alexi Giannoulias stands to collect more than $10 million in federal tax refunds even if its Broadway Bank fails, which Mr. Giannoulias said this week is likely.
A $75-million loss at the struggling lender last year generated tax benefits potentially worth between $12 million and $15 million to Mr. Giannoulias, his two brothers and his mother. As the sole owners of a subchapter S corporation that controls $1.2-billion-asset Broadway, they pay the taxes on the bank’s income and reap tax deductions on its losses. […]
Asked whether he would advise his family to put the tax refunds back into the bank to help recapitalize it, Mr. Giannoulias said, “We’ll do everything we can to keep the bank going. . . .You’ll have to ask management of the bank what the best course of action is.”
The campaign says the family is filing for a return of taxes overpaid last year on capital gains in anticipation of profits that didn’t materialize. The campaign claims that the idea all along has been to use the cash to recapitalize the bank, not to enrich themselves. From a campaign website…
Like the millions of Americans who overpay their income taxes each year, the family is owed tax refunds. They are actively pursuing a refund of this money as a way to help save the bank. They would not profit in any way if the bank fails. Alexi has said repeatedly that he will do whatever he can to help save the bank, which includes using any tax refund he might receive on his 3.6% share to recapitalize the bank. If the bank does indeed fail, the Giannoulias family, who are sole shareholders, will bear the full brunt of the loss.
* Meanwhile, the Daily Herald editorial page asks some pertinent questions about how Republican congressional nominee Joe Walsh can afford to rent this $860,000 Winnetka house on what Walsh claims is an annual income of just $40,000…
The editorial also looks at some claims Walsh has made about the foreclosure on his Evanston condo and his subsequent eviction…
If Congressional candidate Joe Walsh was so hard up for money that he couldn’t fulfill his obligation on a $300,000 mortgage, why was he able to afford to rent an $860,000 colonial in Winnetka with an in-ground pool?
If he needed more room for his large family, why didn’t he look to rent a house of the same size but for half the price in, say, Wauconda or Lake Zurich? Is it possible he could have managed his mortgage payments if he had done that?
Walsh said that people have to understand the circumstances that led to the foreclosure on his Evanston condominium. He was only making $40,000, he said, and he couldn’t afford to keep paying for two homes.
Take a look at the picture above. Does that look like the house you would rent if your family was making $40,000 a year? Especially if you also owed money on another residence?
And the Northwest Herald notes another item in its latest story…
Walsh’s problems [include] a lawsuit filed by his former campaign manager for about $20,000 in unpaid services
The suit was filed just before the primary, as this Jan. 21st Barrington Courier-Review article notes…
Morton Grove-based Patrickson-Hirsch Associates filed a lawsuit today with the Circuit Court of Cook County alleging Walsh did not pay the company $20,000 for the campaign management services provided by Keith Liscio, a principal with the company who also has had a 15-year business relationship with Walsh.
According to the lawsuit, Patrickson-Hirsch provided campaign management services that required $5,000 payments bimonthly, beginning Sept. 1. The lawsuit claims that each of the first three such bills were paid past their due dates. The lawsuit then states that Walsh failed to pay any of the subsequent four installments, beginning with the Oct. 15 bill. On Dec. 4, the lawsuit states, Patrickson-Hirsh terminated its management of Walsh’s campaign, still owed $20,000.
Jim Thacker, a spokesperson for the Walsh campaign, said because of this pending litigation, Walsh will not comment on the issue. Thacker added that he has been working on campaigns for over 20 years and has “never seen anything like” having a lawsuit filed against a candidate so close to a primary election.
…Adding… Campaign roundup…
* Local officials eye probe of voting machine merger
* DuPage chairman candidates wary of revenue projections
* Oberweis hoping to end GOP infighting in new role
* Fair map supporters churn toward April 1
* Slay Illinois’ legislative district monsters