the perception/reality problem for Jared Polis April 14, 2008

Jared Polis now has a big perception problem and things have worked out exactly as Joan Fitz-Gerald must have hoped before she started the tax release game in CD-2. A few days ago Polis and Shafroth followed Fitz-G and released their tax returns. The Daily Camera ran a story, because, of course, how much the candidates make is exceedingly important to who should get the job (read: sarcasm….and ok, it’s really because we’re a bunch of peeping toms and any time we can find out how much our neighbor makes or what their medical records say we just have to know).

The story carried a sidebar with six or seven years of income and tax history for the three candidates. The problem for Jared was obvious at first glance: for five of the seven years of his tax history, he didn’t pay any taxes. In two other years he made a combined hundred and twenty mil. In a nutshell, that’s the perception problem: you made millions but didn’t pay taxes. So typical of you filthy millionaires.

While Jared did pay taxes in his two money-making years, he didn’t pay taxes in the others, so looked at a certain way he made somewhere near $110M in seven years but only paid taxes in two of those years.

Now, the reality is that

1. in the years he paid no taxes he lost money (anywhere from $250K to $2.5M);
2. he paid over $18M in taxes in his two years in the black while Joan paid a total of $65K; and
3. in the most recent year he did make money and thus paid taxes his bracket was far higher than Fitz-Gerald’s.

Joan’s tax bracket jumped around a bit but in 2006 it was 3.5% and for Jared in the same year it was 14.0% (and 14.8% for WS). Over the entire history of their returns Polis paid an average of 16%, Will 14% and Joan 12% (total tax divided by AGI).

Polis’ tax return history is absolutely legit. He’s an entrepreneur. He starts companies, he takes major risks, and sometimes he gets rewarded for his risks. When he gets rewarded he pays his share of taxes. When his companies are in the red, he doesn’t pay taxes (I’m not sure what the story is for 2001). Nobody in CD-2 should have a problem with this.

In fact, if the Fitz-Gerald campaign insists on making money an issue in this race, the real story in CD-2 should be that Polis has contributed far more money to the government, to schools, to police and fire, to our economic engine, than Fitz-G. But of course that’s not the story. And why isn’t it the story? Because Jared has done a terrible job of spinning it that way. Jared has allowed the JFG campaign to subtly define him as a dirty, sleazy, richy-rich businessman who’s trying to buy the election. Jared, you have a golden opportunity to turn this back in JFG’s grill and make her look catty and irresponsible. Tell your campaign staff to step up and do it.

Throughout the history of this campaign the JFG camp has been successfully painting Polis with a tar brush of negative connotations surrounding his money. It’s quite obvious that people have been buying into it*. JFG has controlled Polis’ perception. The reality is that when it comes to his success, Polis has created economic value and tax revenue that should be celebrated, not denigrated. Let’s see where this goes next.

*Actual conversation from a party the other night ['her' is a staunch Joan supporter]:

her: [squealing voice] …but he didn’t pay any taxes!!

me: well he lost money in those years

her: I don’t care! He made a hundred million in another year. He should be paying taxes.

me: but he paid a lot the years he made money.

her: so?

me: so even when he loses money in a year he should be paying taxes?

her: YES!!