Did Illinois US Senate candidate Alexi Giannoulias lie to voters or to the IRS? Those would seem to be the only two possibilities considering the Democratic candidate for President Barack Obama's old seat took a $2.7 million tax deduction for working hundreds of hours at his family's failed Broadway Bank in 2006. But the candidate has been telling voters he left the bank by late 2005.

Continued...

What's the big difference between late 2005 and hundreds of hours into 2006? It's the difference between leaving the bank before its questionable lending practices, the April takeover by federal regulators and a loan by the bank to convicted influence peddler Antonin "Tony" Rezko and being involved in all those controversies.

Mr. Giannoulias's explanation for the apparent discrepancy is that he left the daily operations of the bank in September 2005 but was on paid leave until May 2006 when he left completely to campaign full time for treasurer. So he didn't lie to the voters to distance himself from his family bank's shady dealings and he didn't cheat on his taxes. He merely took a no-show job with an un-earned salary so that by reporting he "worked" at least 500 hours at the bank in 2006, he was able to get a break that helped him avoid paying federal income tax for 2009. (source)

The latest polls show Mr. Giannoulias trailing in his Senate race with Republican Mark Kirk by a slim 2 point margin but help is on the way from his longtime supporter and friend President Obama.

The president will be in Chicago on October 7 where he will attend a fundraiser for Mr. Giannoulias and the Democratic Senatorial Campaign Committee. (source) Evidently even in his home state, the candidate isn't willing to risk a joint public campaign appearance with the increasingly unpopular president and with this latest tax revelation and the accompanying bad press, Mr. Giannoulias can't afford to take any more risks.