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The family bicycle business of Wisconsin Democratic gubernatorial candidate Mary Burke has not paid state income taxes for more than three decades.Burke’s father co-founded Trek Bicycle in 1976, out of a “red pole barn” in Waterloo, Wis. The company grew to become the largest bike manufacturer in the United States, and has been pivotal to Mary Burke’s case in her effort to oust Gov. Scott Walker (R.).Burke mentions her role at Trek in nearly every campaign appearance. As head of Strategic Planning for Trek, Burke focused “every single day on improving the company’s bottom line,” according to her campaign website.Trek, which claims its bicycles can “combat climate change,” has sales of roughly $900 million. However, according to records from the Wisconsin Department of Revenue obtained by Fox 6 in Milwaukee, Trek Bicycle has not paid net income taxes since at least 1982.Fox 6 reported that the Burke campaign “doesn’t want to talk about the company’s record on taxes.”According to the records, Trek files under “Subchapter S” of the tax code, which enables the company to avoid corporate taxes and pay as individuals at a lower rate.Trek spokesman Eric Bjorling has defended the practice, saying that majority of businesses take advantage of the loophole. The news report noted that more than two-thirds of the 25 of the largest businesses in Wisconsin are not paying net income taxes.“Trek has always complied with state and federal income tax laws,” he said. “S corps are the most prevalent type of corporation with 61.9 percent of all corporations filing a Form 1120S in 2003.”During her campaign, Burke has indicated that she is open to tax increases, including for businesses, saying that she believes in people “paying their fair share.”
