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Friday, January 30, 2009

Another tax avoidance problem for an Obama nominee

What is it with these guys? They only seem to figure out that they should pay back taxes when it comes time to be nominated for a cabinet post. Now it's Tom Daschle with the tax avoidance problems.
ABC News has learned that the nomination of former Senator Majority Leader Tom Daschle, D-S.D., to be President Obama's Secretary of Health and Human Services has hit a traffic snarl on its way through the Senate Finance Committee.

The controversy deals with a car and driver lent to Daschle by a wealthy Democratic friend, a chauffeur service the former senator used for years without declaring it on his taxes.

It remains an open question as to whether this is a "speed bump," as a Democratic Senate ally of Daschle put it, or something more damaging.

After being defeated in his 2004 re-election campaign to the Senate, Daschle in 2005 became a consultant and chairman of the Executive Advisory Board at InterMedia Advisors.

Based in New York City, InterMedia Advisors is a private equity firm founded in part by longtime Daschle friend and Democratic fundraiserLeo Hindery, the former president of the YES network (the Yankees' and Devils' broadcast network).

That same year he began his professional relationship with InterMedia 2005, Daschle began using the services of Hindery's car and driver.

The Cadillac and driver were never part of Daschle's official compensation package at InterMedia but Mr. Daschle -- who as Senate majority leader enjoyed the use of a car and driver at taxpayer expense -- didn't declare their services on his income taxes, as tax laws require.

During the vetting process to become HHS secretary, Daschle corrected the tax violation, voluntarily paying $101,943 in back taxes plus interest, working with his accountant to amend his tax returns for 2005 through 2007.
Of course, now that we have the Geithner precedent indicating that failure to pay taxes is no longer a disqualifier for a Democratic nominee. And Daschle has the added bonus of having been a Democratic senator up for confirmation in a Democratic-controlled Senate. I expect that we'll hear that this was just an honest mistake and that he's way too necessary to the President's plans to have the government take over even more of our health care system.

I guess Daschle is just one more of these old government hands who can't seem to figure out what they owe in their taxes. He, Geithner, and Charlie Rangel can get together and attend tax preparation workshops together.

The thing is that the Obama people must have known about this story before Obama nominated him. And just as with Geithner, they decided that it just didn't matter. They knew that the Senate Democrats would push the nominations through without much of a problem and that the media would go lightly with his nominees. Sure, there would be some stories and a few jokes on late night comedy shows, but such stories truly are speed bumps when they have to do with Democrats.

8 comments:

tfhr said...

1. TERM LIMITS! (Daschle was around too long before he was shown the door)

2. Flat tax - then even Geithner could figure out how to do his taxes properly though he might still elect not to pay them, as is his custom.

3. Move election day to April 16th - there is no coincidence in the calendar positions of your tax filing deadline and the day to express your "thanks" at the polls.

4. A rent controlled prison "apartment" for Rangel. Nothing can help Rangel - he is a criminal and his constituents don't seem to care.

The Vegas Art Guy said...

Laws only apply to Republicans...

Move along, nothing to see here...

Patm said...

Chrikey.

And John Kerry called the Republicans "crooks and liars."

What is with these asshats - don't any of them pay their taxes? Do only the little people do that?

I thought Joe Biden said Taxes were PATRIOTIC. Doesn't Obama have a damn patriot in his administration?

Wait...what am I saying.

They're all about dismantling and deconstructing America.

We are SO screwed.

The Mighty Quinn said...

This not tax avoidance, this is tax evasion which is a Federal Crime.

The Intellectual Redneck said...

Is Tom Daschle a tax cheat?

Owing a hundred thousand dollars in back taxes seems a bit too much. What is it with these democrats? They don't have any problem raising taxes on the rest of us. When it comes their turn to pay, they are looking for a pass. This really is shameful.

mark said...

It is disappointing to see these guys being appointed to top positions. Maybe Geitner and Dashle have a lot to offer, but when they are guilty of crimes (and I seldom believe the "it was an innocent mistake" defense, and they shouldn't be allowed to serve. I've said the economic meltdown is a result of stupidity and greed by all people across the board, rich and poor, private-sector and public. We won't change our ways if our leaders are no better.

Sally said...

This is about Obama though, isn't it? Daschle apparently told the vetting committee about these problems (and presumably Geitner did as well) and Obama decided it was okay.

He seems quite confident that he can absorb scandal and impropriety without harm to his Presidency, that he will never have to pay a price for his flawed choices and poor judgment.

In the old days they called that hubris.

The Vegas Art Guy said...

Sally, you can do anything when the press is on your side. Like I said earlier, laws only apply to Republicans.