*no
Like most wannabes your understanding of how businesses grow or fail due to actual market conditions is weak.*

Like most internet blowhards, you have no facts to rebut anyone's argument.

In addition to Solyndra and Ener1, there have been numerous candidates the POTUS has endorsed since his election who have gone down in flames. Tom Barrett should be lucky he didn't get an endorsement.

*Those companies failed due to either poor execution or poor demand not some government boogeyman.*

The policies of the party in power sure as heck affect every ounce of business done in this country--negatively. From rules & regulations to their insane energy policy.

Speaking of which, Solyndra failed with billions of you and your countrymen's tax dollars injected into it. I'm sure most of the executives who were buddy/buddy with the administration got their checks before the whole house of cards collapsed, though.

Today's exposure of left wing hypocrisy by motorman, who quipped about name calling saying the following "particularly ones who don't have much to say besides name calling." The best part is this posters latest comments also included these classic nuggets:

"drool boy Walker"
"you're a bigger idiot..."
"small minded selfish drag"
"corporate lapdogs"
"The Botox needle went in to deep, that explains Diane"
"you are a boring repetitive parrot"
"Why is our Governor Stupid meeting with Alice Cooper"

Just a continuing saga how the left wing wants others to do things they themselves never do.

As I suspected, unable to stop the rhetoric and just deal with facts. Typical liberal.

The Janesville Gazette needs a new editor. The editorial page is responsible but the news is a big problem. Perhaps Mr Angus feels comfortable with the headlines attached to articles and that is sad. He seems to have lost his way when it comes to accuracy. The Beloit Dialy news had an accurate headline which summarized the issue. Thumbs down to Scott Angus.

*I'll believe a corporation is a person when Texas executes one*

The current POTUS has executed a bunch of corporations since he took office. Pretty much every one of them that he touted has went under. Dude seems to have a reverse midas touch.

Motorman, based on your comments it would be useless to carry on a cogent conversation with you. Now if you wish to stop the rhetoric and deal with actual facts you can try again, I do suspect that would be the best approach.

Motorman, The teachers were never the thugs. The unions who claim to represent them are just by the actions they have taken. As a matter of fact reported in the Wall Street Journal more then half of Wisconsin Teachers cancelled out of the union. They are taking advantage of Act 10 and all it's glory. That's why I believe Scott Walker will win. They don't want to be forced back in and why Democrats refuse to talk about it.
Tom Barrett couldn't give us one school hurt by Governor Walker's reforms. Not one.

Since your insane rhetoric is wrong and warped it gives a clear view of why your comments make little sense as well.

@sherm: Hahahaha, you flatter yourself. I am not trying to "divide and conquer" with your comments, which I did not read. And you missed my point entirely.
As to your point about paying your "fair share", please re-read the article and my previous comment from May 31, 2012 at 7:46 a.m.
Why is it that there are never any articles about rich people who are being soaked, paying more than their "fair share" and no one even says "thank you"? And there are never any articles about poor people who pay *nothing* and yet reap the benefits of living in this society? What is "fair" about that?
The point is, until we have a truly FairTax, money will continue to be spent by lobbyists to buy the necessary votes from a complicit Congress to gain the favorable treatment they desire for their masters (in English: to bastardize the Tax Code in their favor). While technically following the "Law", those who are connected enjoy the advantages and the rest of us pay the difference.

"Her state tax obligation dropped from $2.26 million for 2009 to zero for 2010 because of a change in the corporate structure of ABC Supply said Scott Bianchini, ABC tax director. The company paid taxes of $373,671 for the second half of 2010, the records show."
That amount was the estimated quarterly payments toward the 2011 tax liability. ABC paid no taxes for 2010.

"Bianchini declined to comment when asked whether Hendricks, who is chairman of ABC, had other income such as salary or dividends that could have been taxed in 2010.

He also declined to say why ABC's tax bill in 2010 was so low compared with what Hendricks had paid on its behalf in prior years, when its profits flowed to her bottom line.

"Diane is not willing to divulge any more," Bianchini said. "ABC converted to a 'C' corporation - that's a substantial part of why there's no 2010 tax liability (for Hendricks)."

He added that there were other reasons Hendricks paid zero state income taxes in 2010.

"We're just not willing to get into it," Bianchini said. "It's just digging, in our opinion, too deep into her taxes."

This little "news" brief is so obviously and politically tainted and skewed, the Gazette staffers responsible for running it should be turning red from embarrassment and shame.

Another link from another article in today's Beloit Daily News that gives a much better explanation of the situation than this obviously skewed "article" in the Gazette. For those of you who would prefer a little factual info with your inflammatory headline:

http://www.beloitdailynews.com/news/abc-...

Just do not buy any thing her co. controls

How many jobs did she create, in Wisconsin, in 2011 and what do they pay?
Are these tax breaks working?
Lets go gazette where's the rest of the story?

Sadly, it was our Supreme Court that came down with the "Corporations are People" decision. The writing was on the wall the minute that decision was announced. I've checked the dictionary.......have you found corporations referrenced as such?

"
etown
May 31, 2012 at 1:54 p.m.
Suggest removal

frogger dont click on the comment section and guess what you wont see the comments ."

?????

callitasIseeit..."-The middle class votes republican because they would rather have corporations spending money on equipment and hopefully creating jobs and opportunities"
That would be great if that were what was happening. 30 years of failed trickle down economics is proof of that. http://www.nytimes.com/2010/11/24/busine...

The point is ABC didn't pay any 2010 WI state income tax, they say it was because they were a S-Corp. Therefore the stockholders would pay the income tax, but Diane Hendricks (largest stockholder) didn't pay any WI state income tax in 2010 either.

99bottlesofbeer, we are not hoping for a crumb someday, we are already eating well. most of all, we don't buy in to that 99%-1% propaganda crap that the bleeding hearts and artists are trying to ram down our throats. We believe in 100%. as in 100% responsible for our own position in society. The "99%"ers want to lump everyone who's not a billionaire together. I have higher expectations of myself.

After skimming through most of the posts, I find the post below to be better then the article itself which holds no value or substance other then to create animosity.

..It's like yelling FIRE in a crowded movie house.
Good post livesinreality.
livesinreality
May 31, 2012 at 8:27 a.m.
Some of you posters clearly don't understand tax laws. There are various types of Corporations. ABC Supply has been an "S" corporation, and is now a "C" corporation. "S" coroporations don't pay state income tax. The share holders of the "S" corp pay the tax as personal income in each of the states that the income was derived from. In the case of a "C" corp, the corporation pays the income tax to that states where the income was derived from.

*"Poo is correct, just because it is the law doesn't make it morally right."*

Kind of like abortion, right? I mean, hey, the law says it's okay to kill a baby, so go ahead. And if you don't like it, well, elect a bunch of people who agree with you and change the law, right?

usaret asked, "Do I have the right to know if your paying your fair share?"

You don't have that right now, but I believe you should. As you may know, in Norway the amount of each individual's personal income and taxes paid is public information. Just last year, the government website switched away from a name-based search for 2010 and on, but are reviewing this decision going forward. If you'd like to see the level of transparency in Norway, you can check out the Skatteliste (tax list) at [ http://skattelister.no ]. Click on a tax year from 2009 or prior and you can find the personal incomes and taxes paid for all tax-reporting citizens of Norway. I strongly believe in this level of transparency for income taxes.

It would be criminal if Hendricks didn't pay any property tax on her home. I find it comical that so many of the 99% defend the 1%. Must be wishful thinking...hoping to get a crumb someday in the future...doubtful unless they hit the powerball. Time to tax all lobbyist funds by an equal amount. Give 5 million and pay 5 million. If you have the money to give then you have the money to pay. Wondering if Hendricks is rethinking her role in the Walker train. Lots of bad press for the little lady.

Everyone wants someone to pay their fair share. Please define how much that is! What is it based on? Should there be exemptions? If so, who? Do you all take advantage of tax exemptions when you file and if so why? Do you think you have the right to take the exemptions whereas someone else shouldn't? Do I have the right to know if your paying your fair share?

A corporation is an entity or organization, not a person.

according to forbes her net worth grew 100 million in 2010. so with that kind of growth just how do you avoid paying taxes . again you all need to watch the video . http://www.youtube.com/watch?v=NTntb03c5...

TCB:"shermd71,
The society righties want? So changing corporate structure is something people who own businesses should not be able to do?
Your post is only about jealousy and class envy-nothing more."

It has nothing to do with jealousy and class envy. It has everything to do with the middle class picking up the tab for those that get away with shirking their tax responsibilities. Can we change our structure so we do not have to pay taxes (ours and theirs)? Some people claim the teachers are not paying their fair share, but it's ok for the big corporations to get away with it.

And liberals want 100% poor, except for union members. People will vote for you if you need them to feed, cloth and provide medical care.

frogger dont click on the comment section and guess what you wont see the comments .

Some fight to have a strong middle class while the rich 1% only want the rich and poor.

I guess if you hop in bed with Gov. Walker and donate 1/2 million dollars to his divide and conquer tour you don't have to pay state taxes. What a load of crap. I can't believe people can't see how much of a crook Walker is. I guess money can buy anything.

Onedayatatime-The middle class votes republican because they would rather have corporations spending money on equipment and hopefully creating jobs and opportunities than being taxed the same or more paying for the welfare programs of the left while bending over for the unions as well. Making rich people poor and handing it to the unproductive is a sure path to disaster.

The middle class needs to get away from both parties and create its own candidates.

Shame on the gazette for failing to point out 2 things here. doyle was governor in 2010 and her corporation paid over one million dollars in state taxes that year. also lets not forget all the good jobs ABC provides and hugh amount of charitable donations they provide to the staeline area

I find this article and the accusations toward Mrs Hendricks, that some posters are making, very unfair. Over 40% of Americans pay NO Federal or State income tax at all. Should all of them be vilified on the front page of newspapers all across the State, no they shouldn't. Additionally tax policy is so complex that very few people understand it to be able to form an opinion and most certainly to stand in judgment. And I doubt if any poster on this blog, including myself, does have that knowledge.

"
softballmom
May 31, 2012 at 6:54 a.m.
Suggest removal

Diane Hendricks is a business person out for herself & her company....

Yeah- so what. I work hard and it isn't for anbody but ME!!!!! and hubby of course.

it's already happening starbuck. 14 Senators seceded to Illinois just last year.

bla, bla,bla. Cannot wait for all this gov crap to end. Nope Nov right behind.

YOU TOO can write off things on your taxes and owe LESS!!! I do.

onedayatatime, You are soooo correct!

smart and with morals......

It scares the heck out of me to think that the divide and conquer is going to eventually cause a civil war in our state and possibly the country between the rich and the poor. Walker is supposedly the son of a preacher. I think not. He is the son of the devil.

onedayatatime, You are soooo correct!

poo...great post

I remember the first week in my advanced tax accounting class when the instructor said "Rich people do not pay taxes. It is your job as a tax accountant to make sure of that". I never finished the course because of that statement, I did not want to be a part of that.
I do not understand why middle class people support corporations and the wealthy lobbying Congress to have the tax laws wriiten to benefit them and passing on the tax burden to the middle class. The top 5 hedge fund managers spent over 5 million dollars lobbying Congress for the carried interest clause which allowed Mitt Romney to avoid his tax responsibility. I've said it before. Why don't you people who support this kind of buying off of our government just say, here let me bend over and make it easier for you. Poo is correct, just because it is the law doesn't make it morally right. How many instances have you heard about the middle class lobbying Congress to have the tax laws changed in favor of the middle class? Just keep in mind the middle class is being destroyed and we are the ones who pay taxes. We now find the middle class can no longer afford to carry the tax burden so what are we cutting...education, firemen, police and safety nets for the poor. It won't be long before our society will crumble and when a society is divided and conquered it won't be long before the demise of the country. It's where we are headed folks. A strong middle class means a strong country and we don't have that anymore.

The rich get richer , and the poor pay tax's

If you have taxable income, you need a new accountant. If the problem still persists, you need new legislation...

The taxes ABC paid in 2010 was their estimated quarterly payments towards their 2011 tax liability. According to the state DOR they paid nothing for 2010 and neither did Diane Hendricks.

BTW/ the story originated with the Milwaukee Journal Sentinel (which endorsed Walker) not the Gazette or the AP.

The poo_koch troll out for another round missinformation and off topic posts. The fun never ends with the socialist victims in tow.

916WI said, "Poohbah.......Yet you think it's "fair" that an out of state student who pays no state taxes is allowed a voice in our political process??"

There you go again! I thought you may have learned your lesson after yesterday's exchange but you're still putting words in other people's mouths. I never said, 'it's "fair" that an out of state student who pays no state taxes is allowed a voice in our political process.'

Those are your words, not mine. I never made ANY statement as to the fairness or unfairness of that law. Quit putting words in my mouth.

As I expected, the core concept of my comment was lost on you. And that is that tax law is not fair and was not designed to be fair. Loopholes written into tax law by economic elitists to benefit ultra-wealthy individuals give them an unfair tax advantage. Are we a nation of laws, not men? Yes. Is the law the law? Yes. Is tax law fair? No. Was tax law designed to be fair? No.

So this "billionaire" paid no state tax for the year 2010. Interesting. And just who was it that was serving his eighth year, the last of 2 consecutive terms as Governor of Wisconsin in 2010? After answering that question, how does any blame, if there is any blame for the apparently legal tax loophole taken advantage of in this case, fall to Governor Walker who took office in 2011? Obviously none, not that certain blind partisans who frequently leave their comments on these boards will pay that any heed.

“Corporations are people, my friend,”

Good educator deserve higher pay. Poor teachers should be gone or get less pay. Get rid of collective bargaining and that may happen. Collective bargaining has given us a caste system based on everything but actual teaching. Collective Bargaining has given us an inequitable pay structure.

Poohbah.......Yet you think it's "fair" that an out of state student who pays no state taxes is allowed a voice in our political process??
Stop condemning corporations and the way they work within the law to minimize their tax burden.....as you said, "the law is the law! And we are a nation of laws and not men, right?":)

916WI , the inheritance tax would never touch most of the people , only the larger money makers , and they are the one s with all the loopholes getting grants and tax breaks . its a way for the state to recoup some of the breaks they have given these people/companies over the years. there is no guarantee once its handed down to someone else it will even remain in wisconsin . therefore the state should be getting the tax from them to insure their tax breaks werent a loss for the state.

Scott Walker and his friends have cut the compensation and villified hard working educators (for whom I am a union representative). At the same time, the billionaire to whom he promised to "divide and conquer" working Wisconsinites pays no taxes. Can anyone really see this as fair?

RetiredAirForce said, "How terrible, sounds like she followed the law."

As most people know, tax law is not fair and was not designed to be fair. It's designed by economic elitists to give ultra-wealthy individuals and corporations loopholes that allow this kind of thing to happen. But for some people, as long as the law is "fair" to them (meaning they pay little to no taxes), they don't mind how unfair it is to others. As long as they can say they, "followed the law."

RetiredAirForce said, "Ironically since not all business's or people do pay taxes you still think all pay for it; sad."

Oh really, RetiredAirForce. They just, "followed the law." Remember?

RetiredAirForce said, "The fact is Warren, Obama, and even you can pay more taxes at any time if any of you really wanted to. Claiming any of you "want" to, but not until others do it, is nothing less than more of the same in this game of class warfare; the only thing missing is the term fairness." May 5, 2012 at 1:36 a.m. [ http://gazettextra.com/news/2012/may/03/... ]

If "fairness" is as important to you as you would lead us to believe by your statement, then you could practice what you preach, RetiredAirForce, and donate to the state a "fair" share of your military retirement income on which you pay no state income tax.

See my earlier post for information on just how much tax they really pay. For the benefit of current readers, I repeat my statement about the Janesville Gazette and their reckless journalism in publishing this falsehood:----

I understand the desperation of Democrats in their failing recall election. It is incredible that the Janesville Gazette would print this stuff without contacting Diane Hendricks or ABC Supply. I am not acquainted with the family and have no relationship with their business BUT I do observe the jobs, taxes, civic improvements (look at the Beloit waterfront), and chritable contributions from the Hendricks family. Does the Gazette wish ill on Janesville and Rock County? Keep it up and chase business away. Thank God for the Hendrick's family.

Also in 2010, I believe that ABC had a large acquisition, where they bought one of their largest competitors. Is there someone closer to ABC/Beloit could verify the timeline? I would guess that that had a huge effect on ABC's income statement for the year, possibly gave them the reason to shift the corporate structure?

Also in 2010, I believe that ABC had a large acquisition, where they bought one of their largest competitors. Is there someone closer to ABC/Beloit could verify the timeline? I would guess that that had a huge effect on ABC's income statement for the year, possibly gave them the reason to shift the corporate structure?

Roadmaster.......It appears as though the resturcture took place in 2010......The JS mentioned a partial year payment of nearly $400,000 to the state from ABC. The article did not mention what the tax liability was from the first half of 2010. Read the article linked to the gazette article, it clears everything up......

What's her political standing got to do with the story ? More AP bias. They can'y help it

So let me understand, ABC paid no state income taxes in 2010 because they were a S-Corp. Which means that the shareholder(s) paid the taxes. And Diane Hendricks was the largest shareholder and she paid no state income taxes in 2010. So who paid the taxes?

916WI
Nice try but you will never get some of these lemmings to understand.

Happycamper-S Corporations do not pay taxes so that is no surprise. Shareholders are passed on the income in accordance to their ownership and report that income on their personal returns.

While it is surprising there was zero tax paid it is probably part of an overall tax strategy and perhaps a deferral to future years.

happycamper......Are you people seriously this ignorant? The company didn't pay taxes while it was structured as a s corp because in this case Hendricks was made personally responsible for the taxes on ABC's net income.......This is why she had a 2+ million tax liability before changing ABC's corporate structure. Understand?

Romney is running for President on the grounds that Corporationa ARE people !!!! sheeeeeesh !

Sorry, SuperDave, this is NOT class envy as you put it. This is, PAYING your FAIR share!! Like I do, like most of you (if not ALL of you) do. Good try with your attempts to divide and conquer with my comments!! Fell short, however!!

I am curious, kaysbrew, tax "breaks" or tax "exemptions?" There's are LARGE difference between those two concepts!!

The company is an S corporation and paid no State taxs in 2005, 2006, 2007, 2008 (last reported).

But remember, it's those public employees that are screwing the state. You know, the hard working "little people" that work hard for a living and pay their taxes rather than marry into money.

how many of you would like to pay less in taxes? I'm guessing all of you.

the company is paying them instead of her, what is wrong with that? I bet you would like the companies you work for to pay taxes rather than you personally too.

I agree the headline is very misleading and meant to stir controversy. Re-read again people, it says she did not pay taxes personally for her company like past years, but the company still paid. No wonder Rock County has the lowest amount of 4-year college graduates in WI.

I suggest that we all form a "corporation", follow the law, change the structure so the profits and the tax obligations stay with the company, and skip out on taxes too.

She's proof that if your net worth is high enough your IQ can be very low and you can still intrude into American politics.

Analert......Good post. Regardless of what side you are on the Walker issue/or Hendricks contributions to than campaign, it is "news reporting" like this that inflames an already inflamed situation. The gazette should be embarrassed that they tried to pass this off as responsible reporting, and apologize to Hendricks while they are at it.......

It all comes down too the wealthy paying lobbyist to create laws that help them not pay taxs. So who pays the taxs then? You and I! That is the great divide with the 1% vs 99%. If you feel it's fair keep voting Republican.

@Ataxpayer2- I agree with you. I am a liberal too. I support the recall and will be voting for Barrett. That being said, the headline of this article is awful. The " Beloit Billionaire" is a company, not Diane Hendricks. We have no way of knowing, nor is it anyone's business, what she personally paid.

How terrible, sounds like she followed the law.

Motorman....You do realize that the corporations are taxed on net income and not revenue......no?

Not sure if this has been mentioned but Diane's company pays millions in Wisconsin taxes. She also donates millions to charities of all kinds. I could believe she donated more than she made last year and if this gives her a zero personnel tax bill what's wrong with that?

concernedwi....That was a stupid comment. She's not paying for public services? Over the past 5 years, Hendricks/ABC have paid over $5 million in state income taxes. I think that covers the expense of having a fire truck run to her house if she needs one.....no?

concernedwi: Are you telling us that Diane Hendricks does not pay property tax on her gigantic house? You must be since the bulk of items you mentioned are paid for at least in part by property taxes.

Yes e-town.......Because the assets that I bust my butt working for throughout my life, should be given to the state so they can redistribute them to their entitlement programs, rather than given to the people that I care about......You people are pathetic........

If you are outraged or are one of those complaining on here you really have no clue what you are talking about. This shouldn't even be news.

It's obvious someone dug up this information for one reason, and equally obvious it was released to the press and printed at the strategic time. They are counting on a few people to take the ball and run with it. "Sensational reporting at its worst" is an understatement.

Keep up the bad mouthing of a great company with outstanding employees.People just show how uninformed they really are.Maybe that is why they have there corp.headquaters in Beloit.ABC has great products and they sell very well.What is wrong with that?

I dont see why a person that pays say.. $2000 tax a year thinks its unfair for someone that makes more to have to pay more? I think its unfair to the low income people that they contribute less. If I made 40 billion dollars a year, why would I have to pay more than the $2000. that you pay? Why does ones success penalize them? You call that fair? I think any taxes paid on any income that excedes the national average is a gift and people should be thankful that these people that make more money pay in more money. If they didnt all you welfare recipiants and state aid leaches would be out of luck. Then what?

The blame doesn't got on Diane Hendricks, the blame goes on the current laws that allow this. If her gigantic house burns down the fire department will respond. If she needs an ambulance EMS will respond. And if she needs to drive into town the roads will be plowed. All services that she is enjoying without paying for them.

Motorman....Who is defending corporations/wealthy that pay no taxes? It has been made fairly clear that Hendricks and/or ABC have payed a million plus in state income tax every year, over the last several years. Does a million in taxes equate to zero in your little mind?

and now remember they got rid of the inheritance tax , so the money they would of recouped when this company is passed on will no longer be either . all the benefits and none of the responsibilities . they also need to enact a tax when u move your business out of state any breaks you got in the last ten years will be repaid , at full rate. LOOPHOLE LOOPHOLE LOOPHOLE , ONE QUESTION I D LIKE BOTH CANDIDATES TO ANSWER WHAT ARE YOU GOING TO CHANGE TO STOP COMPANIES FROM WALKING AWAY TAX FREE. AND KEEP IN MIND PEOPLE THE COMPANY STILL GROSSED MILLIONS IN PROFIT THAT YEAR.

Fear......What are you talking about? ABC was made directly responsible for those taxes, rather than having them flow though Hendricks. No one got out of paying taxes--the burden of ABC tax liability was shifted from Hendricks to ABC itself......Is this really that hard to comprehend?

I am a liberal. With that said, this is just sensational reporting at its worst. I do believe a case can be made that US Corporations pay too little in taxes. The US has one of the highest corporate rates in the developed world, BUT actual taxes paid after deductions and legal loopholes allows US corporations to pay one of the lowest corporate taxes of the developed world. There is certainly a shell game going on. Does ABC and Diane Hendrix do this? It is likely that they do. Is this an example of her/ABC doing it? No. This is simply the Gazette publishing a fairly routine corporate maneuver with the hope of drumming up a controversy. After all, controversy sells. To be fair, the readers seem to be reading into the article more than what the Gazette actually reported. I believe there is a good chance that the Gazette suspected this when they published this article and should have been more clear about the conclusions that can be drawn from these meager facts.

I'd be willing to bet that if any of you liberal crybabies were Diane Hendricks you would do the same thing. What a bunch of hypocrites!

What people should be commenting on is the ridiculous headline and woefully lacking little blurb of a story that the Gazette threw out there for bait.

This is economics 101. ABC Supply is a corporation not a private person. The company paid no taxes because of restructuring. We have no idea what personal income tax Hendricks paid. Even Warren Buffett's Corporation is separate from him. His argument about his secretary paying a percentage more is based on his PERSONAL income taxes. That percentage is not fair. This is not tricky stuff- it's quite common and has nothing to do with politics.

livesinreality
May 31, 2012 at 8:27 a.m.
Thank you for that. I wish they put that in the article. Clearly taxes are getting paid.

The profits and the tax obligations stay with the company, not with Hendricks.

I like the fact the businesses have the ability to reinvest in the employees and the busines itself to stimulate the economy. However, ABC Supply should pay something.

I will not say that ridiculous markist "fair share" class envy term that is a loser for the Democrats.

I will so more on a flat tax term, whether it be ABC Supply or the Taco Truck in Milton.

RichE95: Agreed. I lived in Beloit for several years in the 90's and in the general vicinity for 40+ years and clearly see the positive changes made with assistance of the ABC company to the riverfront and many other areas and activities. Definitely remember the before in the 70's to 90's compared to the after. But so many people out there will "cut off their nose to spite their face".

why is it funny 916? Are you telling me the widow hendricks made no money in 2010? Just broke even? Its a shell game, its how wealthy folks escape taxes far and wide. The loopholes and games they can play while ,movng a to b to c to avoid paying taxes is hilarious to me. You may think its a success story , I find it unethical at best. I need no help, especially from a person who thinks this practice should be legal, because we all know shifting the tax burden further onto everyone else is ethicqal right?

Amen, Sigma!

This is ordinary stuff, people. The company I work for is currently undergoing the opposite restructuring. Tax responsibility on our (huge) profits will switch from the company to the shareholders. Do you think the shareholders are happy about that!?

Rest assured, ABC Supply likely paid huge in 2010, and 2011, and will continue to do so. Can't really dodge the government from a huge white building and a zillion other locations!

By all accounts, either she or the company paid a TON in taxes on these profits, every single year. Did you want them to pay double? Is that "fair" to you?

And PLEASE, if you don't know the difference between Diane Hendricks (a person) and ABC Supply (a corporation), you aren't helping your case.

The big question is: at what rate does diane pay her taxes? The rich buys elections, the rich get tax breaks. I am the 99% and not voting for the rich mans party.

What follows is a statement from ABC about the false charges made by the Janesville Gazette, other media, and Democratic candidate Mitchell:
-----------------------------------------------
Statement regarding Diane Hendricks and ABC Supply’s Income Taxes:

Mahlon Mitchell recently said the following: “Well, I think you got to look at people like Diane Hendricks, who’s one of Scott Walker’s buddy billionaires, who paid no corporate tax last year and is worth over $2.8 billion.”

ABC Supply has paid $1,078,000 in estimated corporate income taxes to Wisconsin for 2011. ABC operates nationwide and pays income taxes to many other states where ABC has a larger business presence such as California, Texas, Florida, New York, and Illinois. ABC has paid many millions of dollars in corporate income taxes to these states and others as well as federal corporate income taxes. In support of the Wisconsin taxes, I have attached substantiation for ABC Supply’s estimated payments for 2011 Wisconsin corporate income taxes. These payments total $1,078,000.

ABC Supply’s 2011 Wisconsin corporate income tax return has yet to be filed. Like many other taxpayers, ABC extended the filing date of their 2011 Wisconsin tax return from March 15, 2012 to September 17, 2012. Therefore, neither the State of Wisconsin nor Mahlon Mitchell has any data yet regarding ABC Supply’s 2011 corporate income tax return as it has yet to be filed. However, once it’s filed, it will become a matter of public record that for 2011 ABC Supply paid over $1 million of corporate Wisconsin income taxes.

Finally, Mr. Mitchell refers to Diane Hendricks paying corporate income taxes. Individuals don’t pay corporate taxes, only corporations pay corporate taxes.

Mr. Mitchell’s statements are inaccurate and uninformed in every respect.
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I understand the desperation of Democrats in their failing recall election. It is incredible that the Janesville Gazette would print this stuff without contacting Diane Hendricks or ABC Supply. I am not acquainted with the family and have no relationship with their business BUT I do observe the jobs, taxes, civic improvements (look at the Beloit waterfront), and chritable contributions from the Hendricks family. Does the Gazette wish ill on Janesville and Rock County? Keep it up and chase business away. Thank God for the Hendrick's family.

Some of you posters clearly don't understand tax laws. There are various types of Corporations. ABC Supply has been an "S" corporation, and is now a "C" corporation. "S" coroporations don't pay state income tax. The share holders of the "S" corp pay the tax as personal income in each of the states that the income was derived from. In the case of a "C" corp, the corporation pays the income tax to that states where the income was derived from.

Fear......I don't understand what is so funny? The link clearly explains how the company was restructured.
"Her state tax obligation dropped from $2.26 million for 2009 to zero for 2010 because of a change in the corporate structure of ABC Supply said Scott Bianchini, ABC tax director. The company paid taxes of $373,671 for the second half of 2010, the records show.

Bianchini explained that before 2010, ABC Supply was an "S" corporation, meaning the profits and the tax obligation flowed to Hendricks as the owner of the firm. In 2010, the company changed its structure so the profits and the tax obligation stay with the company.

"Now ABC is paying taxes on its own," Bianchini said."

It is fairly straightforward, but if you need help making sense of it, just let someone know....:)

Tax evasion is illegal ... Tax advoidance by following the existing tax codes is legal and what an intelligent individual does. Remember that people. This country will go down like many others before if this game of class warfare continues to be put on by the elitists on each side and blindly followed. And just what does "fair share? mean? Due to some one time life events and decisions last year ... My wife and I paid a higher effective overall tax rate than either Mr. Romney or President Obama despite them making millions or close to a million dollars more than us. Fair must be only if I do as well or better than anyone else and pay no more and preferably less than anyone else.

I'm not defending ABC, but after what I read in the Beloit Daily News a few days ago, this Gazette headline seems inflammatory and misleading...and a little tardy. If anyone is interested in the rest of the story...
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http://www.beloitdailynews.com/news/abc-...
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Quotes from BDN article:
“The fact is, ABC reported substantial taxable profits on their Wisconsin corporate income tax returns in the years 2005-2008 and substantial Wisconsin taxes were paid on these profits,” Bianchini said in an email to the Beloit Daily News
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"In the case of ABC Supply, Bianchini said, the company’s founders and owners — the late Ken Hendricks and his wife, Diane Hendricks — paid the income taxes through their individual personal income taxes."

Wow.

This is great, why would a billionaire be in debt to the IRS in the first place? Glad to see they are doing great!!
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And to all the cry babies out there, in one previous year shes probably paid more taxes than you'll make in your lifetime.. So how is that unfair? Because someone is succesful it is unfair to you? Wow.. gimme a break. If you want more money and a better job go do it. The only thing thats stopping you is willpower and a brain.

Fedup....they were not cowards....they did what they had to do so everyone could see what the DICTATOR was pulling.

Don’t you know you can’t tax the rich, if you do then they won’t trickle on us…. LOL

So, does diane's secretary pay a higher rate tax than she does? It's all about taxing the little guy so the rich can live high on the hog! It happened before in Roman times.

what has this got to do with walker? he was not governor at that time, it was doyle

Saxcat70: YES. I do pay taxes on the increases my retirement makes. I get an increase in my retirement when it does well and I pay taxes. My retirement has gone down the last 4 years and I still pay taxes on what I earn. One bad year and they spread the losses over 5. It will be another year before I see an increase in my retirement even though the retirement fund increased. What is your point?

Bush's tax breaks for the rich, the gift that keeps giving. (To the rich) I can't believe the middle class and lower class people that get suckered into voting for the rich mans party. Talk about the people sucking on the hind teat!

One other thing the supposed his Walker claims well please give us update for 2012 as they are talking last year on his lying ads. And please get the tally for how many jobs were LOST AT THAT TIME not just new jobs as the loss out weighs the amount if new jobs in 2011. As we are number one for lost jobs in the country .

Wislady again you justify corruption and it seems others do. I don't give a rats behind who sponsors what Everyone should pay their fair share and you that support billionaires not paying their share, makes me sick. I am a Fedup tax payer that has to suffer to make the rich ones richer. All you who see no wrong in this have no clue as to the TRUE GOP CORRUPTION. and to think she made no profit my god are you that ignorant to believe that. She tranferred responsibility of her earnings to the company and lining the GOPs pockets to get the free ride. Any tax payer that supports this needs to really look at themselves in the mirror and try to figure out what is wrong in their head. I see kaysbrew must have gotten internet again as she is back with her uneducated comments again.

This article serves no other purpose than to stir the pot in the class envy war that rages (per the liberal agenda) in this country. It continues to be a favorite weapon.

I love those socialist liberal buzz words "fair share". By who's terms? I want Obama, Biden, Pelosi, John Kerry etc to GIVE their fair share to world charities.
How dare they keep their earnings and depend on businesses to give and give and give.

""the company changed its structure so the profits and the tax obligations stay with the company, not with Hendricks""
HILARIOUS!!

First of all, this has nothing to do with politics (R vs. D vs. L), this is just a business person who is working within the existing tax law to minimize taxes, the same thing anyone else with a brain does every single year. Attempts to link this to politics, or to make some point promoting class envy, are pitiful. Do you really want this company to pay more in taxes just so they can charge your contractor more for roofing, windows and siding (which of course would be paid by you)?
And many of you seemed to have missed this part: "Records show Hendricks had a seven-figure tax bill in four of the previous five years". So ABC has already been soaked in past years. With that in mind, those of you petty jealous, class envy types should take smug comfort (although how that benefits you personally totally eludes me).

It is amazing how many commentors have no concept of simple ecomomics and tax law. If you don't know what you are talking about, keep your mouth shut.

State Income tax is based on income correct? Does this article state what her income was for last year?

I can't believe this is a shock for people to hear!!! The Gazette should put all the business that don't pay taxes and all the people too. Its funny nobody cared about this until it comes to voting time its just dirty politics, Im not even going to waste my time voting!!! Im surprise their not blaming this on Bush or Obama or hell even GM I mean really people move on....

etown: I certainly hope your calling for ousting Obama as well. Where was your outrage over GE?

http://abcnews.go.com/Politics/general-e...

http://www.nytimes.com/2011/03/25/busine...

http://www.rawstory.com/rs/2012/02/28/ge...

Disgusting! She gets what she pays for.

So how many jobs has ABC CREATED in Wisconsin since 2010?

Some people just don't "get it". Sure wish I could keep my tax dollars and reinvest in my house.

Don't get me wrong, if I were rich I would support Walker also, he's giving hundreds of millions to the rich.

We don't want Diane to move ABC Supply out of Wisconsin, we just want her to pay her fair share.

Their fair share? they haven't paid corporate taxes from 2005-2009 (last reported).

No need to get in a great big snit over this. They paid seven figure taxes in prior years. ABC is paying their fair share according to current tax laws. They've done nothing wrong here.This shouldn't even be news.

This had nothing to do with Doyle OR Walker. The company simply changed it's structure to avoid paying state taxes, something that is and was perfectly legal. What it does say is that the "oppressive tax burden" claimed as a reason that companies were not hiring, is actually a complete lie, and that the "job creators" only create jobs due to demand, not tax breaks.

and their worried about what it costs for state workers , seriously get rid of the loopholes for these companies . if your still voting for walker after this .............someone needs to help you.

Air Fest is already planning for the 2013 event, Diane Hendricks, and all sponsors, should withdrawn any support for the event.

Event Sponsors:

ABC Supply Company, Beloit Area Car Dealers (Bryden, Finley-Dencker Buick / GMC, Bud Weiser Motors), Best Events, Small Business Technology Solutions Inc., Charter, CSI, Foremost Media, Morse Group/Amp, Rock County Medical, WCLO, Rock County Culvers Restaurants, Pepsi.

happens all the time. "profits and tax obligation moved to the company". To me this means she made no money from the corporation, resulting in no tax obligation. The company pays the taxes on their profits instead of her. Do you pay taxes on what your retirement accounts earn? Instead of whining about her successes, work harder and stop sucking the teat. Slanted reporting to stir the masses.

Diane Hendricks is a business person out for herself & her company--and owes no taxes--must be nice! The middle class will keep on paying while the rich gets richer. Clearly the citizens of Wisconsin MUST vote next week for a CHANGE of leadership!

That evil Governor Doyle. How dare he allow tax breaks to the people who create jobs, give to charity and jump start the economy. Bring in the unions and let them steal from the employees and give their hard earned money to the DemocRats!
No growth to the economy or job will be created under the blue fist union rule. That is my liberal pledge to you.

Another way Mrs. Hendricks can avoid Wisconsin state taxes and union's is move ABC supply 100 miles east to a right to work state like Indiana, or 100 miles southwest to Iowa.

My point is, stop bad mouthing business if you want them to stay in Wisconsin.

shermd71,

The society righties want? So changing corporate structure is something people who own businesses should not be able to do?

Your post is only about jealousy and class envy-nothing more.

I am sure you FOOLS on the right believe that she (her husband, really) DESERVES to keep her hard-earned money because she creates those high-paying jobs!! How did paying her FAIR SHARE of taxes the past few years REALLY hurt her bottom line? Right, IT DIDN'T!! This is the society you righties want!! Here it comes!! Open wide!!

And the rich get richer...

Are you kidding me?

Doyle was governor then, correct?

And the band played on.