On a strictly moral basis, I could care less.  You might notice I didn’t take on Bill Brady over the issue either. If you lose money overall, you don’t pay income taxes.  This makes economic sense and while the politically smart thing is to pay for your state salary, morally it has little to do with anything.  A business owner following the law is hardly something to be upset about. Even if you were to increase rates of taxes, that won’t affect someone losing money in a given year.  Overall, business owners pay a lot of taxes over time and a one year snapshot tells you very little. Obviously, if they aren’t paying year after year the law needs to be fixed or they aren’t going to last long.

All that said, it is a horrible looking situation and if you don’t pay the taxes for your state salary, it just hands opponents an easy score, so no demerits on the substance, but 10 on the political handling of the situation.  One of the issues facing both campaigns for the US Senate is everyone is set to autopilot to reply to every statement of the other campaign and to do it viciously.  The problem is you then end up attacking when you should be showing some humility and both campaigns have been doing a good job of that the last few weeks.