Atlanta Weather

| Traffic

Search
Political Insider

Income tax returns, blind trusts, and the race for governor

3:00 pm October 4, 2009, by jgalloway

Last Friday morning, Republican candidate for governor Eric Johnson of Savannah pulled back the covers and revealed that he and his wife Kathryn, the office manager for a local church, earned a combined $307,318 in 2008 – according to their joint tax returns.

The former leader of the state Senate said that as governor, he would give reporters access to his tax documents each year. Moreover, if elected, Johnson said he would put his assets in a blind trust.

“I want the people of Georgia to know that I have no vested interest in anything but them,” said Johnson, an architect by trade.

Johnson challenged other candidates for governor to do the same. And many immediately responded. Former Gov. Roy Barnes – no piker on the topic – declared he would release his tax returns for 2002 through 2008 by the end of this year.

When that happens, the Democrat emphasized, he will have disclosed his fiscal interests for the last quarter century.

See detailed responses from nine of 11 candidates for governor here.

Johnson insists his only motive for opening up his tax returns is good government. Yet an emphasis on ethics also has the advantage of underlining some potential weaknesses among his GOP opponents.

U.S. Rep. Nathan Deal of Gainesville, it was recently reported, personally intervened with state leaders last year to preserve an obscure state program that earns his private company nearly $300,000 a year. On Friday, a spokesman for Deal said release of the congressman’s income tax returns would be “duplicative” of disclosures already required for all members of Congress.

State Insurance Commissioner John Oxendine routinely files a joint tax return with his wife Ivy, who is a sales agent for an insurance company. Oxendine said he was willing to disclose his tax returns, but wants the state Republican party to help negotiate an agreement among GOP candidates so that each reveals the same span of yearly income.

Johnson called the idea “goofy.”

“He wants to be governor, and he wants the Republican party to make a decision like this for him?” Johnson mused. “I made my decision. He can make his own.”

There is another implication contained in Johnson’s call for transparency. It has given all Republican candidates for governor the opportunity to draw a quiet line of distinction between themselves and Sonny Perdue.

Johnson says he intended no comparison with the Republican incumbent’s attitude toward disclosure and disposition of his personal finances. “I don’t know what he did and didn’t do. I didn’t pay attention to what Governor Perdue did,” the former senator said.

Perdue made public his income tax returns in 2002 and 2006, during his campaigns for governor, but hasn’t done so since. More importantly, unlike the three previous governors – Joe Frank Harris, Zell Miller and Barnes – the first Republican governor in modern Georgia history declined to put his private holdings in a blind trust.

Blind trusts, controlled by a third party, are intended to insulate the holdings of a public official from the impact of his public policy decisions. But Perdue argued that, unlike paper investments, his grain elevator businesses and other interests wouldn’t tolerate the neglect.

Even if Johnson didn’t notice, many Republicans winced in 2006 at the news that the governor – then running for re-election – had paid a politically connected developer $2 million for land near Disney World. Eyebrows were raised again when it became known early this year that a $21 million loan taken out by Perdue for unspecified reasons was due in March.

The governor says he has paid the loan off, but may borrow the same amount again.

The winner of the Democratic primary is sure to make Perdue’s private dealings an issue next fall. “Georgians deserve a leader who is open and honest, with nothing to hide and no hint of insider dealing,” Barnes said.

Within hours of the dropping of Johnson’s gauntlet, three other GOP candidates – Deal, Oxendine and Secretary of State Karen Handel declared that they favored blind trusts, too. Oxendine said he would have legislation introduced to make third-party asset management mandatory for both governors and lieutenant governors.

Given the precedent set by previous governors, the issue of financial disclosure is far more settled on the Democratic side of the race for governor. In addition to Barnes, the three other candidates – Thurbert Baker, DuBose Porter and David Poythress – said they would disclose their tax returns next year. Porter committed to three years’ worth.

Like Barnes, all three said they would put their assets in the hands of disinterested third parties for the duration of any term served.

For instant updates, follow me on Twitter.

  • Print

26 comments Add your comment

Peter Griffin

October 4th, 2009
4:49 pm

Eric Johnson is a class act. It just so happens that being a class act is a natural contrast with the other candidates for Governor.

Will Jones - Atlanta Jeffersonian Exegesis

October 4th, 2009
6:26 pm

“I want the people of Georgia to know that I have no vested interest in anything but them,” said Johnson, an architect by trade.

That’s why Johnson chose Linger Longer’s Jamie Reynolds to help run his campaign?

Yeah, real “class”: Low and no class.

Grady L. Cornish

October 4th, 2009
9:50 pm

“Even if Johnson didn’t notice, many Republicans winced in 2006 at the news that the governor – then running for re-election – had paid a politically connected developer $2 million for land near Disney World.”

Eric Johnson also participated in the Republican leadership’s quick dismissal of a fact laden abuse of office complaint against Perdue for the sale of Oakey Woods, his purchase of land adjacent thereto, as well as the customized tax break he received for the land transaction in Florida. Top that off with Perdue’s recent appointment of David Nehmias to the State Supreme Court, who was the Republican appointed Federal Prosecutor whose office received the fact laden complaint against Purdue, about which we have not heard anything since.

Eric’s silence and indifference to the foregoing ethical lapses by Perdue stand in stark contrast to his election season maneuver. The time is always right to do right.

Insider

October 4th, 2009
10:46 pm

Deal is a class act. He came clean, and its a shame that he is being targeted by the liberal AJC, and a group that is funded by George Sorous. He has taken a stand against the health care bill pushed by Pelosi, Obama, and Barney Frank. I wish we had more politicians like Nathan Deal. No matter who you favor for GOV, we must take a stand against the Goverment’s march towards socialism.

Linger Longer’s Jamie Reynolds

October 5th, 2009
6:49 am

Eric Johnson is a class act, I own him lock, stock and barrel. He will be a great Governor for the power brokers.

Linger Longer’s Jamie Reynolds

October 5th, 2009
6:53 am

Deal is a class act. If my man Johnson loses, I’ll just buy Deal, he sells himself so cheeply that I won’t need any other investors. He will be a great Governor for the power brokers.

anti incumbent

October 5th, 2009
7:18 am

It sounds like all the candidates are crooks. I guess that is par for the course, but isn’t there someone above this.

Say It Aint So

October 5th, 2009
7:43 am

There is plenty of time for each of you to completely read about the partys running. Stop listening to others and do the research for yourselves. These elections are to important now to vote the corrupt into office to help Obama and his criminal zars and heads do their dirty work.

The Presidential election was a disaster and you are now seeing the fruits of the vote. All they had to do was lower taxes for corporations and do real healthcare reform (which is tarp reform and taking regulations off insurance companies) but no, they flew through a stimulus that paid off all their friends who helped get him elected and did nothing for the economy but put us almost into a depression.

Read and vote with authority. Do your research or dont go to the polls. As a American you have the right to vote but you also have the responsiblilty to vote responsibly. Be smart about it. Your kids will live with your voting adgenda.

GoOx

October 5th, 2009
8:33 am

Deal, Real, Steal, uses his office to make himself richer, and hides it by not disclosing his tax returns. Johnson also has had his share of legislation that ended up helping his firm, and making him richer.

As usual my man Ox leads the way, asking for a third party to help set the rules.
.

GoOx

October 5th, 2009
8:43 am

Forgot to mention, cheap stunt by Johnson. He is a best a third tier candidate, looking for free press anytime he can get it. He hasn’t moved in the polls since he entered the race. Funny that he was never for transparency all the years he was in the senate. Funny how much the state budget grew while he was in a leadership position in the senate. If you want a true conservative, vote for my man Ox.

Rumor is that Johnson is going to drop from the Governor’s race, and run against Cagle. Don’t forget that Cagle played in the make Deal, Real, Steal richer scheme. Wonder if Casey has learned how to tie his shoes yet.

Linger Longer’s Jamie Reynolds

October 5th, 2009
9:20 am

John Oxendine is a class act.If my man Johnson loses and the OX wins, I’ll just buy an insurance company. He will be a great Governor for the power brokers.

Zeb

October 5th, 2009
9:41 am

“Mr. Ethics” while serving on the Jekyll Island State Park Authority Board, was instrumental in the award of an exclusive contract for privatization of Jekyll to a company owned by his current campaign finance chair. Where do all these campaign millions end up if he loses? He can repay “loans” to himself, and dole out millions to his political cronies and “campaign” operatives. The political campaign finance system is hopelessly corrupt. That is why this state is now operating like a banana republic. Every facet of government has become “pay for play,” and most of our politicians have entered government only to milk it for their own advantage. This state desperately needs a true public servant as governor. Is there one out there?

The Snark

October 5th, 2009
9:52 am

Enough of the sideshows. I don’t give a damn how much money any of these people made last year or any other year. I want to know if they have the skills to be Governor, and what they intend to do if elected.

Savannah's Dave Simons

October 5th, 2009
10:01 am

Nothing to see here – I owned Eric Johnson lock, stock, and barrel when he was a State Senator and will own him even more when he’s Governor – I have the goods on him like no one else. As Governor, Eric will empower me as his enforcer and we will rule over this state like the mob. Me and my pawn shop buddies will run this state when Eric gets finished pulling the wool over everyone’s eyes getting elected…

Realist

October 5th, 2009
10:05 am

Deal is real and has a track record to prove it. Pandering Oxendine is just that, he has no record except a sub par driving record when it came to using state vehicles. John “blue light” Oxendine abuses his power, and would be a disaster as a GOV. If you dont like deal vote handel or barnes

Realist

October 5th, 2009
10:06 am

Deal is real and has a track record to prove it. Pandering Oxendine is just that, he has no record except a sub par driving record when it came to using state vehicles. John “blue light” Oxendine abuses his power, and would be a disaster as a GOV. If

Rhonda Atlanta

October 5th, 2009
10:09 am

Jeff Chapman. The only real person in the race. All the others are robots.

Bud

October 5th, 2009
10:12 am

How many state owned cars would Oxy wreck and lie about as Governor?

Linger Longer’s Jamie Reynolds

October 5th, 2009
10:15 am

Jeff Chapman is a class act. We will be in throuble if he wins because I can’t buy him. Can you believe that Georgia can have a Governor who is not owned by the Power Brokers.

Linger Longer’s Jamie Reynolds

October 5th, 2009
10:20 am

Deal is a class act. If my man Johnson doesn’t win he’ll be my choice. He has a proven record that Georgia can be proud of. After all he was named 1 of the 15 most corrupt by CREW. He may not be David Scott but he is a man I wan work with. He will be a great Governor for the power brokers.

Cynic

October 5th, 2009
11:31 am

Where do they report under the table earnings?

Grumpy

October 5th, 2009
12:47 pm

I’m enjoying so much watching Republicans eat each other up during this primary. So much for Reagan’s 11th Commandment: Thou Shalt Not Criticize a fellow Republican. Johnson? Oxendne? Deal? Handel? God help us !! The last thing we neeed is another Republican enriching him-or herself or his cronies at the expense of the taxpayer.

usoo

October 5th, 2009
2:05 pm

Good for Eric – he put out one year’s worth of taxes. Most of his income, I hear, comes from Northpoint, a developer . Northpoint makes money leasing lots of space to Gulfstream. Gulfstream received big tax breaks from the state, thanks to Eric. So Eric helps Gulfstream, Gulfstream pays Northpoint, Northpoint pays Eric. And we thought Nathan had problems.

cletus T Rockfella

October 5th, 2009
3:52 pm

All of them, borders, norwood, perdue, barnes, deal, e.johnson, jimmy carter, oxendine, along with franklin, and all politicians in cobb, fulton, dekalb, gwinnett, cherokee and the surrounding counties are nothing but good for nothing, worthless, money grubbing, headline grubbing, lying, cheating, stealing, thieving, manipulating pieces of dogsh*t. Not a one of them is worth a darn & all of them should be in jail.

TANSTAAFL

October 5th, 2009
8:03 pm

Greetings All,

Man-O-Man. What a great thread! We’re captivated over here at the secret underground Libertarian Command Center (LCC) at the responses to Mr. Johnson’s challenge to the rest of the republican field. A pretty standard political idea has fired up their respective bases and unleashed the hounds of hell! Who woulda thunk it? Blind trusts have been in vogue for some time with our political elite class and are commonly used to propagate the concept that while serving the people, they are turning a blind eye to their own interests. Riiiight.

We agree with many of the comments here, especially the ones that point out the self aggrandizing nature of any politician currently holding office seeking new fields to plunder. Which is why we Libertarians are so looking forward to the Governors race in 2010. Next years primaries will be better that any UFC cage match! Tongues will wag, fingers will be pointed and John Monds (L) will cause a runoff in the Governors race. You can help make that happen, Vote Libertarian! Vote John Monds for Governor in 2010!

Good Government

October 5th, 2009
8:55 pm

Everyone running should release their tax returns for duration of their time in public office. Anything more than that is gravy.