On tax breaks and legal bribes

Trinity College should give Todd Dagres of the Class of 1982 an especially nice welcome if he shows up in Hartford for his 30th reunion this spring. He’s a really hot prospect for the alumni fund, having the wherewithal to endow several professorships with what he saves on taxes alone.There was a story in The Washington Post the other day about how private equity types “work the angles to keep from paying taxes” and the Trinity graduate was Exhibit A. That’s because Dagres paid no taxes on $3.5 million he earned in income and capital gains one recent year, and he beat the IRS in court when it tried to bill him for more than $1 million in back taxes and penalties. You can do that when you’re a venture capitalist like Dagres or, need I say it, Mitt Romney.Dagres raises funds to buy and invest in new and existing businesses and he’s extremely good at it. The Post reported he once made $800 million for his clients on a $15 million investment in a single business. “It’s a performance-based business,” Dagres told the court in 2009, when his case came to trial. “If we perform well, we’re compensated well. If we don’t perform well, we’re not.” Because of their patriotic willingness to take risks with other people’s money, a grateful nation gives wonderful tax breaks to venture capitalists like Dagres and Romney, to select two members of the species at random.Over a five-year period, The Post reported Dagres paid 20 percent of his total income of $59.5 million in taxes. That’s barely more than half the average middle class family’s tax rate. We haven’t known how much venture capitalist Romney paid in taxes because Romney, who still receives a cut from the profits of his firm, Bain Capital, didn’t release any of his tax returns until failing to do so cost him South Carolina and maybe more. Under considerable pressure to make his returns public, Romney first said he might release some returns around “tax time” in April, hoping he’d have the nomination in sight or clinched by then. He won’t. Now that he’s released his most recent tax data, he’ll still be under pressure for returns from his active years with Bain Capital to let the public know if he consistently paid at a rate of 15 percent, thanks to the exceptions made for those great Americans who labor in the venture vineyards. To be sure these splendid tax breaks continue, the financial services industry has worked hard to provide Congress with legal bribes disguised as contributions, to be honest about the system. The Post report on Dagres singled out Democrats from New York and Connecticut who “have faithfully represented and been rewarded by their Wall Street constituents,” with Sen. Charles Schumer receiving $18 million from the financial sector over two decades and Chris Dodd, $14.5 million.The industry is also generous to Republicans, especially House Majority Leader Eric Cantor, who picked up $5.8 million in 12 years. His wife is a former Goldman Sachs vice president and that firm continues to lead financial sector donors with $2 million given to our Congressmen and women so far this election cycle, followed by the now famous Bain Capital, at $1.8 million.What Bain paid its founder and CEO and how much he paid in federal taxes are of greater interest because of Romney’s inexplicable resistance to making his returns public, something every presidential candidate since Richard Nixon and Romney’s father, George Romney, have done for four decades. Newt Gingrich released his return and no one cared, but Romney foolishly encouraged the suspicion that he’s hiding something big. That impression remains and will remain until he releases about a dozen years of tax returns, as his father did.For example, did Romney ever go as far as Dagres, and avoid taxes completely during an especially venturesome year? Probably not, because paying no taxes would be a very dumb move for someone interested in running for president. Fifteen percent is bad enough; zero percent would leave voters confusing Romney with General Electric or Al Capone. Simsbury resident Dick Ahles is a retired journalist. Email him at dahles@hotmail.com.

Latest News

Parade of Lights illuminates Cornwall

Cornwall's Parade of Lights, Sunday, Dec. 21.

Photo by Tom Browns

CORNWALL — A variety of brightly decorated vehicles rolled through Cornwall Village the night of Sunday, Dec. 21, for the town's inaugural Parade of Lights. It was well attended despite the cold conditions, which didn't seem to dampen spirits. The various vehicles included trucks, utility vehicles, a school bus and rescue apparatus from Cornwall and surrounding towns.

Keep ReadingShow less
Sharon Hospital drops Northern Dutchess Paramedics as ambulance provider

Sharon Hospital

Stock photo

SHARON — Northern Dutchess Paramedics will cease operating in Northwest Connecticut at the start of the new year, a move that emergency responders and first selectmen say would replace decades of advanced ambulance coverage with a more limited service arrangement.

Emergency officials say the change would shift the region from a staffed, on-call advanced life support service to a plan centered on a single paramedic covering multiple rural towns, raising concerns about delayed response times and gaps in care during simultaneous emergencies.

Keep ReadingShow less
Connecticut crowns football state champs

Berlin High School’s football team rejoices after a last-minute win in the Class M championship game Saturday, Dec. 13.

Photo courtesy of CIAC / Jada Mirabelle

In December’s deep freeze, football players showed their grit in state playoff tournaments.

Connecticut Interscholastic Athletic Conference named six state champions in football. The divisions are based on school size: Class LL included schools with enrollment greater than 786; Class L was 613 to 785; Class MM was 508 to 612; Class M was 405 to 507; Class SS was 337 to 404; and Class S was fewer than 336.

Keep ReadingShow less
Citizen scientists look skyward for Audubon’s Christmas Bird Count

Volunteers scan snowy treetops during the Trixie Strauss Christmas Bird Count in Sharon. Teams identified more than 11,400 birds across 66 species.

Photo: Cheri Johnson/Sharon Audubon Center.

SHARON — Birdwatching and holiday cheer went hand in hand for the Trixie Strauss Christmas Bird Count on Sunday, Dec. 14, with hobbyists and professionals alike braving the chill to turn their sights skyward and join the world’s longest running citizen science effort.

The Christmas Bird Count is a national initiative from the Audubon Society, a globally renowned bird protection nonprofit, that sees tens of thousands of volunteers across the country joining up with their local Audubon chapters in December and January to count birds.

Keep ReadingShow less