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He responded last week:

FOR IMMEDIATE RELEASE
July 12, 2002

SIMON STATEMENT ON WALL STREET JOURNAL ARTICLE

LOS ANGELES - Gubernatorial candidate Bill Simon today released this statement n response to a Wall Street Journal article:

"According to today's Wall Street Journal, the IRS is looking into the advice provided by two public accounting firms, KPMG and BDO Seidman, to many investors. The matter at hand is between the IRS and these public accounting firms. The outcome of this issue will have an impact on many businesses and individual investors across the country. Like many Californians and Americans, and due to the technical complexity of IRS regulations, I have, and my firm has, utilized the advice and guidance of tax professionals, including KPMG, other accountants and tax attorneys.

"On the issue of taxes, I have paid over a million dollars a year in state and federal taxes. I, like millions of Californians and Americans, hold the firm belief that tax returns are a private matter between an individual and the government. That said, California has extensive public disclosure laws that require an individual to disclose his or her investments and business interests that could be potential conflicts in the conduct of state business. The disclosure document I have filed is hundreds of pages long and goes into great detail. That document complies not just with the letter, but the spirit of the law. I would argue that there has been no candidate for governor or governor in modern day California that has provided such thorough and extensive disclosure.

"The attacks by Governor Davis and his campaign are simply a red herring intended to deflect attention from the fact that he has strong-armed over $40 million in campaign cash from Californians and from businesses and individuals across the country. We don't know a lot about what Gray Davis has done to extract that campaign cash. What we do know is that numerous allegations and stories in the media indicate that Gray Davis' administration has been engaged in a cynical pay to play scheme since before he took office.

"I am reminded of the fact that Governor Davis has yet to reveal his interactions with Enron, and he has refused to return the $120,000 he collected from that company.

"Let me conclude by again stating that I understand that the dispute mentioned in the Wall Street Journal is between the IRS and two public accounting firms.

"All U.S. companies and individuals have an obligation to follow the laws and regulations established by appropriate regulatory entities. When I enter into business transactions, I do it for maximizing my returns, just as any other investor, large and small, and I follow the law."

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BILL SIMON FOR GOVERNOR
770 L STREET, SUITE 1110
SACRAMENTO, CA 95814
WWW.SIMONFORGOVERNOR.COM