Democrats Accuse US Sen. Ron Johnson Of Avoiding Taxes

Democrats are accusing U.S. Sen. Ron Johnson, R-Wisconsin, of having an overseas tax haven for his plastics manufacturing business, but the senator says he is reporting and paying taxes on all his profits from the Irish company.

The Huffington Post reported Friday that Johnson owns a 9.9 percent stake in DP Lenticular, a Dublin-based company.

Wisconsin Democrats accused Johnson on Monday of using the European company as a tax haven. They also said Johnson’s opposition to legislation that would make it more difficult for companies to establish overseas entities is self-serving.

“Worst of all, he spent time in Washington opposing legislation that could have prevented tax dodges like this,” said Kory Kozloski, executive director of the Democratic Party of Wisconsin, on a phone call with reporters. “He has literally profited off his votes and never disclosed it to Wisconsinites.”

Johnson and his campaign strongly refuted Democrats’ allegations on Monday.

Johnson said the Irish company is the European distributor for his plastics manufacturing company, Pacur.

“This is not a big deal,” Johnson said. “This is how you export products.”

Johnson said Pacur has not diverted profits or income to the Irish company. He added his profits from his share in the company amount to less than $15,000 per year, and said he reports and pays taxes on all of that income.

“There’s no profit parked over there,” Johnson said.

The senator, who is battling former Democratic Sen. Russ Feingold to retain his seat in the senate, called the allegations false and “distortions.”

“It’s another attack on a successful family manufacturer that exports product,” Johnson said. “It’s sheer class warfare.”

Johnson’s campaign rebuked Democrats for their comments, asserting no “tax dodging” or “outsourcing” has occurred and that the senator has not supported or opposed legislation that applies to this situation. The campaign also pointed out the company is not a subsidiary of Pacur and that its profits were publicly disclosed in the senator’s personal financial disclosure.

Johnson has been critical of United States tax laws in the past, saying he has been “disappointed,” but “not surprised” by companies moving overseas.