Timeout.. and Cagle Tax Problems?

Listen – I consider it pretty ridiculous when there are 14 comments awaiting moderation and damn near every one of them are cut-n-paste from the Ralph Reed mailer concerning Cagle’s tax situation. Give me a break folks…

Secondly, a comment was posted that got a little to close to the personal/professional boundary. I removed them, mostly at the request of the person on the receiving end of the comment. Any problems, see me.

Finally, here’s the intro para from the Reed email:

Casey Cagle Chaired Senate Finance Committee, Oversaw Georgia Tax Laws, But Avoided Paying Payroll Taxes on His Own Employees

Monday, June 3, 2006

Casey Cagle chaired the powerful Senate Finance Committee and oversaw Georgia’s tax laws, but official state records show that Cagle did not pay the payroll taxes, including federal and Georgia income and FICA withholding taxes, on employees as the law required. Casey Cagle’s 2001-04 state Senate re-election campaigns and his Lt. Governor campaign paid $35,892.50 to individuals listed as campaign employees However, records show that withholding taxes on these employees were not paid.

The email contains plenty of footnotes and references. Give us a chance to dig through it.


  1. northside elephant says:

    Most campaigns pay their staff as independent contractors. There are no benefits, no taxes witheld and the job is by its very nature a temporary arrangement!

    IC’s are responsible for paying their own tax quarterly! Most CPA’s, small business owners, IT people or consultants know how this works. This “charge” is completely and totally baseless and insulting to the intelligence of voters!

  2. GAWire says:

    The elephant from the northside makes good points. These are obvious to anyone associated with campaign politics, and Reed’s crew know good and well how rediculous such claims are. This is just another tactic, but who cares!?! It isn’t going to make any difference this late. All Reed is trying to do is keep some of Cagle’s people home on Primary Day, but if they see this, it’s only going to fire them up more. It’s also not going to sway any Undecideds, b/c most of those people are in the U column b/c they are tired of negative campaigning, whether it is about RR or CC. They want to hear substance and the facts still point to safer votes going to Casey.

    Ralph is trying to make his own scandal out of Casey. Ralphs knows that he is in the very center of the biggest political corruption scandal in the nation, so he thinks creating a scandal for his opponent will even the playing field.

    Yeah, great strategy, Ralph! Sounds like something a group of exiled CR’s would come up with in a last ditch hour of desparation (sorry about the CR reference, Jeff!).

    The idea with this email, though, is that the far majority of people don’t realize that this type of thing is perfectly normal in a campaign. Ralph probably had his campaign structured differently from the beginning, knowing he would hit Casey with these 5th grade tactics later on.

    Another example of how Ralph Reed cares more about himself than the people he is running to represent.

    Get over it! This stuff doesn’t matter. This should only drive Casey’s people harder.

    Have I mentioned yet that this race will be determined by turnout?

    I see someone (who is apparently new to PP) shaking their head out in the audience, so let me reiterate … TURNOUT WILL DETERMINE WHO WINS THIS RACE, SO GET YOUR PEOPLE OUT TO VOTE FOR CASEY!!!!!

  3. debbie0040 says:

    If Cagle listed them as employees instead of contractors on his disclosure form, that is a problem. An employee is treated differently than a contractor.

    Since this email has gone out the Cagle campaign has remained silent on it.

  4. The Busdriver says:

    Will the last person in the Team Reed opposition research department please turn out the lights?

  5. debbie0040 says:

    I hate to break this to you Cagle supporters, but it will be a rough two weeks for you…

  6. debbie0040 says:

    Come on Clayton, start a separate thread on the IA Poll for the SOS. Very newsworthy that Bailey polls ahead of Stephens.

  7. Chris says:

    Even if Cagle listed them as employees vs contractors on his disclosure forms, that implies a clerical error on his disclosure form, not that he cheated on his taxes.

    Ralph must be really desperate to resort to such pathetic tactics…..

  8. northside elephant says:

    What matters is if the work performed passes the IRS IC/Employee Test AND IT DOES.

    Is Reed also accusing the many other upstanding Republicans in GA of being corrupt or dishonest because they use contracted services?!

  9. debbie0040 says:

    If he listed them as employees or staff, that showed he considered them employees and should have paid taxes.

    Chris, are you saying Cagle made ANOTHER mistake on his financial disclosure form? Tell me how many mistakes has he made on his forms?

    Nice try northside, but Reed only is accusing Cagle.

  10. northside elephant says:

    If other Republicans are using contracted services (which means that they are not witholding taxes) then why can’t Casey Cagle?

    This actually shows that Ralph has little business sense for a self-proclaimed “small business owner”

  11. debbie0040 says:

    You used Cagle’s defense for introducing and voting on legislation that benefitted him and industry personally-The everybody does itr defense.

    Tell me how many Republicans have ascended from renting tuxedos to Bank President in four years while serving on the Senate Banking Committee and increased their wealth 900% in that same time period? How many bank presidents do not have a college degree? For the record, I am not knocking anyone without a college degree. I am just trying to point out Cagle used his influence to obtain that position. Him achieving that fast was not ordinary.

  12. northside elephant says:

    Why is Reed underhandedly attacking the very Senators, Representatives and others that we have worked hard to elect?

    First he criticizes an important vote that the entire Republican Caucus supported. Now he essentially says that it is wrong for these same leaders to use contractors in their campaigns and businesses?

    Is he bitter that the Republican establishment has gotten behind Cagle or is he just desperate at this point?

  13. GAWire says:

    Maybe Reed can file a complaint with the U.S. Senate Ethics Committee when he appears before the subcommittee on Indian Affairs to explain money laundering allegations in relation to his activities with convicted fellons and failing to file proper disclosures and failing to comply with federal ethics standards.

    Please continue to bring up ethical questions in this race. Gee, I wonder who is going to win that debate. Casey doesn’t even need to waste time fighting that … there are plenty of media organizations willing to take Ralph on those issues.

    Gimme a break!

  14. Bill Simon says:

    Cagle people need to show-up at tomorrow’s Cobb GOP BBQ in droves. Rumors are that Ralphie has offered to pay for HIS supporters’ BBQ tickets in order to stuff the straw poll ballot.

  15. HSC Republican says:

    It is called HARD WORK! It is what our great country is built on! I think you should try and bring some evidence to the table and file something with the ethics comm, or shut up!

  16. bowersville says:

    Abramoff Email to Norquist “They’re (Reed/Ney) just a bad version of us.” Reed Email to supporters, “Cagle is just a bad version of me.” Abramoff Email…TRUE…Reed Email…LIE. Abramoff/Reed, BAD. Cagle/Lt. Governor, GOOD..06.

  17. debbie0040 says:

    I can tell you that Cagle and Reed are both gold sponsors with the same number of tickets. Any further questions?

    I would urge all Reed supporters to show up as well.

    Bill, Konop did not come to put up even one sign at Jim Miller Park inside the pavillion.

    On his disclosure form, Cagle listed both contractors/consultants and employees/staff in the same report. Now why would he do that if they were all contractors/consultants?

  18. bowersville says:

    Why would a candidate list contractors/consultants and employee/staff in the same report? Are you Reed staffers grabbing at straws? Was it a CR/Carl Rove want to be preparing this accusation? (sorry Jeff) Do you Reed supporters realize how silly this sounds?

  19. debbie0040 says:

    I can assure you that I am not a Reed staffer and never have been. I am 47 year old network engineer/analyst.

    Answer my question. Just suppose they were contractors paid under 1099 forms. Then why would he list both contractors/consultants and employees/staff in the same reports? Go check out the forms, I dare you…

    These accusations have more merit than money laundering by Reed that you Cagle supporters accuse Ralph of.

  20. bowersville says:

    Nothing personal to you Debbie, but you are speaking on Reed staffer talking points based on a Reed Email. I did not, nor do I accuse you now of being a Reed staffer. I can do my own research and it’s still silly for the pot to call the kettle black(sutty). The accusations have absolutely no merit because it is ethical, legal and moral. Unlike Reeds BS monies through untaxed entities, be it by Abramoff’s insistence to protect Reed, or by Reed’s insistance to Protect Reed, or by Reed’s own ignorance. Answer your own question, is every Republican guilty if they use consultants that file 1099’s.

  21. Jack S says:

    I just saw the cagle ad slamming ralph on gambling and abramoff and debbie I think you have it backwards. Reed is about to feel it foe the next two weeks. Damn, that’s the best tv spot I’ve ever seen.

  22. debbie0040 says:

    Bowersville, contrary to popular belief, I don’t take ANYONE’S word for anything. I check it out myself and I looked at Cagle’s disclosure reports. It is there in black and white. The email sent out by the Reed campaign did not mention that both were listed on his disclosure forms. I analyze everything and look at both sides before I reach my conclusions.

    When my then boyfriend told me how sleazy Cagle was when I was trying to decide between him and Reed, I checked out Cagle. I was suprised at what I found.

    Cagle’s ads are running the same old allegations that voters have heard for months that have had no impact on Reed. Reed’s ads have some “fresh meat” for voters on Cagle.

  23. debbie0040 says:

    IF they listed both contract and employees as Cagle did and did not pay taxes, then they are guilty.

  24. Bull Moose says:

    Okay, Ralph is now just straight up making up crap to go after Cagle on… Man, it reminds me of how he made up things about John McCain. I’m not surprised, it’s Ralph Reed’s style to just make up things to attack his opponent on.

    Anyone in politics knows that whether you’re called employee, independent contractor, or whatever, if you work on a campaign, you’re paid straight up and taxes are your own responsibility. Goodness, what’s next Ralph? Casey Cagle has expired tags on his car? Casey’s dog isn’t registered? Come on, make up some more stuff…

    The bottom line is that Ralph Reed is trying to hide his own ethical shortcomings that involve alleged money laundering, lying, distortion, and so forth.

    If Jack Abramoff can’t trust Ralph Reed, why should the voters of Georgia trust Ralph Reed?

  25. Romegaguy says:

    Now we learn that Ralph doesnt take out taxes on his campaign people as he too considers them to be independent contractors…

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