Sunday, December 16, 2007

Blagojevich Could Owe Taxes For Flights

Ouch from CBS2 this governor is taking a beating. Well since the summer he's been taking a beating for his expensive flights as the state legislature is toiling hammering out a budget. The complaints are that these flights between Springfield and Chicago costs money. Now it might cost him some money...

Tax experts say the Internal Revenue Service could consider that travel a taxable fringe benefit.

But Blagojevich's office says the governor's main office is in Chicago -- not the state capital -- so trips there are for legitimate business.

The AP review found that the value of the flights by Blagojevich, his family and guests could be at least $225,000.

That could mean a potential tax bill to the governor of $60,000. Taxpayers could get hit with a penalty of $40,000 if he doesn't pay the bill.



Blagojevich could have significantly cut the amount he might owe for personal trips on state aircraft if he would have used a federal tax formula.

The Internal Revenue Service allows a steeply discounted rate for the value of executive's personal travel on company aircraft.

An Associated Press review of flights by Blagojevich, his family and guests shows trips with no business purpose valued at $225,000.

He could owe taxes of $60,000 on the flights.

His office says the issue is moot because the governor's main place of business is Chicago -- not the state capital -- so flights there are for business purposes.

If Blagojevich had used the IRS discount -- the flights would have a value of $15,000 or less.

He likely would still be able to use the discount for 2007 flights. That would save him tens of thousands of dollars.

The potential tax bill of $60,000 is based on Blagojevich applying the discount for 2007.

4 comments:

Disgusted,  3:53 PM  

What part of "The seat of government of Illinois is Springfield" does the governor NOT understand. This administration simply thinks of Illinois as a fiefdom, with themselves are deserving of divine rights. Even the Queen of England, Europes oldest continual monarchy, is more gracious and conscious of the people who support them financially than the Blagojevich family. The feds can't move fast enough for most of us peons out here.

steve schnorf 7:42 PM  

This whole line of thinking rates as one of the most stupid I've ever seen

Yellow Dog Democrat 7:46 AM  

I find myself in the rare position of defending the Governor. Somewhat.

It doesn't matter what the AP or two tax experts say the Governor owes in taxes for flights. It only matters what the IRS says. Period.

But, when it comes to defining what is "official business" for the state's Chief Executive, I have to assume that the Tenth Amendment to the Constitution would prohibit the federal government from defining "official business" for Governors. That seems to be a right of the states, and I don't think the federal government should be able to use the tax code to bully governors about their job description when an open act of Congress on the matter would clearly be unconstitutional.

On the other hand, the continued use of state resources for unofficial business by the Royal Family is embarrassing.

Emmet Paloian,  8:56 AM  

Rod Blago is a friend of friends.

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