Daschle will be confirmed as Secretary of Health and Human Services, despite the tax hiccup

[zulchzulu]

Even Fox News is reporting that Daschle will be confirmed. This story will be a wonkish footnote a month from now.

FOX News confirmed that Daschle alerted the Senate Finance Committee, which will oversee his confirmation hearing, that the matter involves more than $100,000 in back taxes and interest for a car and driver that was provided to him for four years by Leo Hindery, a wealthy Democratic donor and longtime friend of Daschle's.

Daschle incorrectly assumed the use of the car and driver was not subject to taxation. But the White House says he discovered the error during preparation for his confirmation and filed amended tax returns with the proper payment and interest.

http://www.foxnews.com/politics/2009/01/30/white-house-daschle-tax-issues-shouldnt-bar-cabinet-confirmation/

Was Daschle correct in thinking that he had to pay for a driver provided for him by someone else? No... or maybe his tax advisor didn't get the memo. Is it a deal breaker that he won't be the next Secretary of Health and Human Services? No.

It's good that they found it out in early January and addressed the issue.

More on this:

Former Sen. Tom Daschle, picked by President Barack Obama to lead his health reform efforts, recently filed amended tax returns to report $128,203 in back taxes and $11,964 in interest, according to a Senate document obtained by The Associated Press.

(snip)

Daschle filed amended tax returns for 2005, 2006 and 2007 to reflect additional income for consulting work, the use of a car service and reduced deductions for charitable contributions. He filed the returns after Obama announced he intended to nominate Daschle to head the Health and Human Services Department.

Most of the additional taxes resulted from unreported income from the use of a car service provided him by a close friend and business associate, Leo Hindery Jr. The unreported income for that service totaled more than $250,000 over three years.

Daschle also had unreported consulting income of $88,333, in 2007. He also had reductions to charitable contributions totaling about $15,000 over the three years covered, according to the Senate Finance Committee document. The document, marked "Confidential Draft," is a committee statement concerning Daschle's nomination.

The car service and the consulting income were received in connection with Daschle's business relationship with InterMedia Partners of Englewood, Colo. Daschle is a limited partner and chairman of its executive advisory board. Daschle is also an independent consultant to InterMedia Advisors LLP of New York City.

Hindery founded InterMedia Partners, a private equity firm, in 1988. Daschle was paid $1 million annually for his services, the committee said. Daschle's 2007 tax return did not include one of his monthly payments of $88,333.

http://news.yahoo.com/s/ap/20090131/ap_on_go_pr_wh/daschle_taxes

Face it. The Repigs are going to fight healthcare reform no matter who is Secretary of Health and Human Services. This might be a nice excuse for some clever Repig to bring up... and let it be duly noted that whoever brings it up should expect that their records will also be sniffed out.

Does this hurt Obama? If you want to play gotcha games over trying to address the issues we need to address, this is a nice distraction.

As for Howard Dean getting the possible Secretary of Health and Human Services gig, I think Howard is ready to get on the speech circuit and veer away from the eager story-hunters in the Beltway.


On edit: more specifics on tax info

[sandnsea]

1. How did that amount to $100,000?

How much are they calculating a car and driver to be worth anyway? Hell I have a car and I've never had a ticket. Hire me. WTF.

[napi21]

4. It was ore than just the car & driver. It was also $90,000 speaking fee

that he didn't pay taxes on either. That, & the car/driver plus the penalties could easily add up to $100,000.

Daschel says the ommission of the speaking fee amount was due to him receiving an erroneous 1099, and I'll buy that, but I question who the hell all these politicians are hiring to do their taxes? Damn! I was an accountant for 40 years (not a tax accountant) and if I had done my job that poorly, I'd have been looking for work more than I would have been working!

[zulchzulu]

5. I added more info about the dealio...

Apparently the driver and car were part of a nice deal Daschle had with Intermedia... a million bucks a year since the 80's...

I suppose when you are worth $30 million, overlooking a $100k tax problem is like not noticing your socks are different...

[alexandria]

2. $100,000 in back taxes ?

I would be in jail if i owed that much,is this really true?

[geek tragedy]

3. Not if you catch it before the IRS does. n/t

[alexandria]

6. i am updated.

Can Obama not pick people that do not have tax problems?

[Phoebe Loosinhouse]

7. "reduced deductions for charitable contributions"

That will probably be the stupid little factoid that really trips the hot wire.

[sandnsea]

8. The whole thing stinks

A million a year for what services?

Why were the charitable contributions reduced?

No, he needs to go. You can't advocate rolling back the tax cuts on the wealthy when you evade the taxes you owe.

[terisan]

9. agreed!!!!

[zulchzulu]

10. As much as I agree with you, having him drop out now makes it look even worse

He apparently paid his taxes... and yes, he made a million bucks a year from a company he started... Intermedia. That's what people do in the Beltway.

If we had a purity test, he'd be toast.

But since it's DC and multi-millionaires (who look at $100k like we look at a dollar bill) run the show, that's always been the dirty little secret of this democracy...

[sandnsea]

11. There are consequences

even for mistakes, although this doesn't look to be one. Nope. There has been enough looking the other way. Obama needs to make his own administration adhere to the same principals he is demanding Wall Street adhere to. This one is over the top and I'm especially disgusted it was Daschle because he knows he's under scrutiny because of his wife.

Having a lot of money means you can afford to get it right and they damn well should.

[zulchzulu]

14. Quite true...

Daschle's tax woes, which will be a mere footnote a month from now (unless there is more dirt), soil the credibility level. I can only look at the fact that through the vetting process that the error was found and payments were made.

Frankly, I've never been a big fan of Daschle and am even a bit suspicious of how he will be effective at getting well-needed healthcare reform in action. He will get the HHS position either way and it is up to us to keep him aware we are watching.

Put it this way... if Daschle was a woman, there would be a replacement. That said, it's like watching sausage get made.

[Phoebe Loosinhouse]

16. " the error was found ", i.e. "mistakes were made".

"If Daschle were a woman there would be a replacement."

I don't know what your point is there unless it's that Daschle is part of the "Boy's Club" where you get a wink and a nod because most are guilty but a woman would be judged more harshly- is that what you are trying to say?

You seem for the most part to be minimizing this. Is that due to desire or pragmatism or realism or cynicism or despair?

[zulchzulu]

18. I'd say it is "realism"

Politics is an ugly sport. If you think Daschle is the only guy with some funny tax business, you might be surprised. Just about everyone in any administration has some dirt on them that can be exploited.

To get where these people are means you have to engage in all matter of deals where payback is involved, where some advantages are made due to less than pure circumstances and where it is usually ignored by peers because all have something on them that makes a "story" for the reporters.

Did Daschle do wrong? Yes. Will he get his position? Yes.

My mentioning that if a woman had done the same thing that she would be replaced is just part of the same pattern where I mentioned about how it works. Perhaps that is cynicism of how it works... and yes, Daschle is part of the "Boy's Club", namely the Senate, where they rarely beat up on each other.

It's a game. Their rules are not our rules. We have to deal with that or climb the sooted ladder to play with them.

[sandnsea]

17. Zoe Baird hired an illegal worker

Remember, the economy sucked almost as bad in 1993 as it does now. They had also just instated that social security tax law so there was no way she could have not known. Millions of people were paying those taxes and paying more to US citizens, that's why she was in trouble. Obama should just take a cue from women's groups and let Daschle go and put women in HHS and Commerce. We are 50% of the population.

[Phoebe Loosinhouse]

12. And having him stay in looks better?

I realize "the dirty little secret of democracy" is exactly what Leona Helmsley said it was - "Only the little people pay taxes"

And it's so annoying when the little folks get mad about mundane stuff like big guys paying taxes. I could at least pretend that I understood Geith-guy's explanation. This one is a complete no-go.

[zulchzulu]

15. If Daschle dropped out, I'd be fine with it... but he isn't and he'll get appointed anyway

Don't think I agree with Daschle's tax problem.

It sucks.

However, he paid up and he's going to get the gig. What is extremely important is that he is effective enough to get real healthcare reform to be able to be passed.

[scarletwoman]

13. Why should we accept that? Why shouldn't we raise a big stink about every one of these guys

who get away with way more shit than any one of us would?

I'm sick of double standards. If some well-connected asshole screws up, why should I accept it as okay just because he's well-connected?

Fuck Daschle. I will NEVER forget when he stood next to bush* in the Rose Garden, all smiles and approval while bush* signed the IWR. I have ZERO interest in rehabilitating such an asshat.

And I certainly don't give a shit if it makes the Obama administration "look bad" if Daschle has to drop out. Maybe they'll learn something.

sw

[depakid]

26. Richardson stepped down over less

and that didn't cause many problems...

In fact, it might have opened some opportunties.

[InAbLuEsTaTe]

30. I wish he hadn't.

[joeybee12]

28. Agreed...there's no excuse for this...cut him loose...

...besides, he was worthless as Majority Leader, and I really doubt he'll be effective at HHS.

[global1]

19. I'm Sorry - I Bought In To "Change We Can Believe In" & "Changing The Way......

Washington Does Business. This reeks. This is "Chump Change We Can't Believe In". I say he should do the right thing and step down and not give President Obama more trouble than he already has with what BushCo left him.

[biopowertoday]

20. its just a mistake. nothing to worry about. .........

sarcasm.

[Parker CA]

21. This should definitely make for some super-douche questions for Gibbs on Monday.

I'm not sure who I would put my money on for biggest questioning failure though. Hopefully Gibbs will be over his cold and sharp with the wit.

[Dreamer Tatum]

22. ANOTHER tax cheat? Jesus.

Can't they vet cheats ahead of time?

[Vinca]

23. I could understand Geitner because it was a common mistake,

but Daschle is another matter. The appearance is very much more that he was purposely not paying taxes. He should withdraw his nomination immediately. Quite frankly, I think his health plan ideas are way too insurance company friendly anyway. Damn - John Edwards would have been so perfect for this.

[InAbLuEsTaTe]

24. Hey, you have to give the guy credit for catching his mistake.

[cherokeeprogressive]

33. Credit for catching it during the vetting process? Uh uh.

Deputy Press secretary Bill Burton said: "In preparation for his nomination, Sen. Daschle and his accountant identified some tax issues and fixed them. They filed amended return with the IRS and made payments with interest. Sen. Daschle brought these issues to the Finance Committee’s attention when he submitted his nomination forms and we are confident the committee is going to schedule a hearing for him very soon and he will be confirmed."

That says to me if Daschle wasn't in the running for nomination to HHS, he would have continued to be what Geithner is... a tax dodge.

Stinks.

[depakid]

25. Daschle is a tax cheat- plain and simple

That was OBVIOUSLY gross income- and it calls his honesty (or perhaps his competence) into question.

Obama needs to punt that guy- neither he nor his lobbiest ties will do the new administration any good.

Which is probably why Fox wants him to be confirmed.

[CTyankee]

27. Is Daschle the "only" person who could get health care done?

OK, I can barely get past the "Geithner is essential" so we have to take him no matter what. This isn't even close in my opinion.

[Skidmore]

29. Thank you.

I'm certain there are others who could be tapped for this job. I'm not a fan of Daschle and have not been since he and Gephardt tossed Congressional war powers to * for political expediency. I don't trust him. We can do better.

[InAbLuEsTaTe]

Obviously not-wish Hillary had been tapped for this position, 4 which she's better suited than SoS.

[Thrill]

31. I was ok with Geithner's situation. But this one pisses me off

Daschle made over 4 million dollars last yr and he can' t pay his taxes. Assholes like that don't deserve to have positions like this. Then we hear this thing about the charity. This guy is a crook

[marlakay]

32. Its starting to look to me like only us middle to low class pay

taxes. They sure seem to come after us if we do anything not perfect. we finally built our dream home, it was finished 3 yrs ago. Just a small home in the mountains but alot to us. Never have been audited before ever. Always do my taxes on time, pay what i owe and do them right. They audited me for both years we built home because of high deductions that year. I even went both of those years because i wanted to make sure it was right to the top tax guys in my town that are cpa's.

Its pretty sickening to see the rich swim around paying taxes they could afford while those of us barely paying our bills have to stress over finding receipts.

[Cleita]

34. I really would have preferred Howard Dean.

Daschle won't face up to the insurance companies and PhRMA. He has pretty much said so.

[AtomicKitten]

35. Probably, although if it doesn't happen I'd love to see Dean nominated.

[ebbie15644]

36. have him step down

and replace with Howard Dean!!!

[Purveyor]

37. He needs to withdraw his name for the office NOW! eom

[Clear Blue Sky]

38. Hiccup my ass. This would mean jail time for us plain folk.

[thatsrightimirish]

39. I agree

It's unfair

[Thrill]

40. Why has Leon Panetta continued to stall turning in paperwork?

He probably has the same issues. Obama may want to start moving on to other people for these positions