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The Romneys: Conflicts ‘R’ Us
by Froma Harrop
Nov 04, 2012 | 2446 views | 9 9 comments | 8 8 recommendations | email to a friend | print

Have you been following the career of Mitt Romney’s boy Tagg? As his dad runs for president denouncing “crony capitalism” and “big government,” Tagg has been gathering some of Mitt’s richest friends into a private-equity fund called Solamere — a clever instrument for pursuing government subsidies, contracts and tax breaks should Romney win.

You see, disclosure laws would make it hard for a President Romney to hide many conflicts of interest. But if the money guys are in Tagg’s Solamere, we don’t know what conflicts of interest the Romney contributors are profiting from. We may not even know the investors’ names.

“The close relationship with Romney and this investment opportunity looks to me like people are investing to buy access,” Bob Edgar, head of Common Cause, told me. “People are (literally) speculating that Romney may become the next president of the United States. It doesn’t smell good.”

Before Solamere, Tagg’s main claim to business fame was as a marketer for the Los Angeles Dodgers. Now he’s playing financier. The interesting part is that whether Mitt wins or loses (and he and his wife have given Solamere $10 million), Tagg and Spence Zwick — his campaign’s finance chairman and a Solamere partner — make a pile.

Here’s an example of the awful possibilities: One of Solamere’s founding partners is Marc Leder, whose Sun Capital owns the Scooter Store. (It was at a fundraiser in Leder’s Boca Raton, Fla., home that Romney dismissed 47 percent of Americans as wards of the government.)

You can’t have missed those annoying Scooter Stores ads. A senior citizen rolls around on her motorized wheelchair, proclaiming, “… and I didn’t pay a penny out of pocket for my power chair!” The message is that Medicare will pay. For a while, it did.

The Centers for Medicare and Medicaid Services found that 80 percent of the Scooter Store’s sales did not meet Medicare rules. In money terms, the Scooter Store had bilked taxpayers of nearly half a billion dollars.

The Scooter Store has spent nearly $900,000 on lobbyists trying to stop Medicare from disqualifying its wares for taxpayer subsidies. Leder has also given a total of $525,000 to Romney’s campaign and a Republican PAC, and he’s letting Tagg enrich himself by managing his money in Solamere. Do you believe for one minute that Leder will want nothing back from a Romney administration?

Fracking and other energy interests have put their money with Tagg. So have military contractors. Dental management companies have been targeted for pressuring dentists to perform expensive work on low-income children, the bill sent to Medicaid. They’re in Solamere. So are the investor-owners of for-profit colleges, which Romney has praised from the stump. Known for providing weak education, the for-profit schools draw 85 percent of their revenues from taxpayers. Romney a small-government president? My foot.

Solamere’s private-equity partners, meanwhile, would surely object to tax reform that messes with the outrageous deal that taxes their earnings at only 15 percent — the sort of loophole that served Romney well at Bain Capital. True to form, Solamere has set up shop in the Cayman Islands to shield its investors from U.S. tax liabilities.

Let’s not play the innocent here. In every administration, Republican or Democrat, campaign contributors seek favors. What’s different is the awesome scope of the money involved and the unblushing sales pitch linking investments to an inside track that — via Solamere — would go under the radar.

Last June, Solamere held an investor conference in a Salt Lake City building next door to a fundraising retreat for wealthy Romney donors. That Solamere touts its “unparalleled networks” so openly is the scariest part. Politicians used to do these things in secret.

To find out more about Froma Harrop, and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com.



Comments
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ashley.a.ashton
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November 04, 2012
It's because of crude, uneducated people like Percy and Ross that I no longer call Robeson County home. Ross probably makes 75K a year, and think's he is rich and part of the 1%ers. LOL!

Excellent article!
ROSSisRIGHT
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November 05, 2012
Actually I'm part of the 100%.... America. I don't believe in groups, like democrats do. Black, white, rich, poor, walmart moms, soccer moms, nascar dads, educated, etc.... all those groups were put in place and separated by the democrats.
sagehopper
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November 02, 2012
Sounds very much like Michelle Obama's Woods Fund" in Illinois that steered public monies to MO's hospital, and Valerie Jarret's electric utility company..
PercyKution
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November 02, 2012
Have YOU been following the career of MOOSHELL'S rear end? The thing has gained 150 pounds right on top of it's legs AT TAXPAYER EXPENSE with all that White House food. How about that?
ROSSisRIGHT
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November 02, 2012
Hey buddy, you have had over 4 years to do some investigating on Obama. Whatcha got him?

Pathetic.
ReallyRobeson?
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November 02, 2012
That slurping sound you hear is nothing to be alarmed at...it's just the foolish hope you had circling the drain that if you spent and spent and spent more to sell us on the lie that the 1% is really trying to benefit the rest of us by getting as much as they can so they can trickle it downward. That dog won't hunt and never would.
ROSSisRIGHT
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November 02, 2012
reallyrobeson: Why do hate the 1% so much. How would you like it if they said they hate you? You're already whining about Romney's 47% comment. Why is it poor people can hate the rich, but the rich are supposed to love you guys... I don't. I could care less about people who chose to be poor. That's right, CHOSE. The decisions and choices YOU make in life determines how that life ends up. Now look out your window and ask yourself, "have my life choices been good, or bad"? Rich people don't get anything handed to them, they earn every bit. We don't want or need government to do a dang thing for us, but get out of our way. Government takes from those who earn it and gives to those who didn't...

Which one are you?
honestly...?
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November 04, 2012
@Ross: Which one am I? ...Well, I am not rich by far..but I am comfortable. When you say that people "CHOSE" to be poor, I strongly disagree with you. How can you say this? I know several people who were very successful in their careers and all of a sudden..BAM! The doors of their offices close..they became sick...or another unforeseen situation happened. Do you think they look out their window and ask their self "was it the choices I made that put me where I am today?"...NO! Just like you may need to ask yourself..why am I so close-minded...you sir are very unpleasant ..you have prejudices that show through and through. Tell me Ross...are you that alone and bored with your "rich" life that all you can do is sit at your computer and wait for a comment to be made so you can have some kind of entertainment? You should be on the red carpet somewhere...having others handle your fan page. WOW..is all I have to say about your opinions...take lightly to what you say sir because one day you may be looking out your window yourself....

I