Former South Dakota Senator Tom Daschle (picture at right is part of a Getty Images pic at a related New York Times story) has just upped the ante in Washington's tax-avoiding/evading game of "Can you top this?"
Whereas recently confirmed Treasury Secretary Timothy Geithner "only" $40,000 in back taxes and interest, principally relating to unpaid Social Security and Medicare taxes (with a dash of retirement-plan penalty and illegally deducted overnight summer camp expenses included in the mix), the man who Rush Limbaugh used to call "Puff" Daschle during his Senate days has upped to ante to six figures.
Jake Tapper at ABC's Political Punch appears to be the one breaking the story (HT NRO's The Corner):
Bumps in the Road: Obama's HHS Secretary Nominee Faces Tax Questions Over Car and Driver
Story Continues Below Ad ↓..... 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 fundraiser Leo Hindery, the former president of the YES network (the New York Yankees' and New Jersey Devils' cable television channel).
That same year he began his professional relationship with InterMedia, 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.
(Daschle reimbursed the IRS $31,462 in taxes and interest for tax year 2005; $35,546 for 2006; and $34,935 for 2007, a Daschle spokesperson said, adding that Daschle had asked his accountant to look into the tax implications of the car and driver five months before Obama won the presidency.)
The Daschle spokesperson told ABC News that the senator, facing questions from the committee, has said "he deeply regretted his mistake. When he realized it was a mistake he corrected it rapidly."
The chairman of the Senate Finance Committee, Sen. Max Baucus, D-Mont., has called his colleagues for a private meeting at 5 p.m. ET Monday to discuss these complications surrounding Daschle's nomination.
In the meantime, the White House and Democratic allies are coming to Daschle's defense.
What follows in Tapper's report are the typical "no big deal" Democratic claims, with White House Deputy Secretary Bill Burton leading the charge, along with Jim Manley, a spokesman for Harry Reid. Republican Congressman Eric Cantor of Virginia counters by saying that "The pattern is solidified. ... It's easy for the other side to sit here and advocate higher taxes because -- you know what? -- they don't pay them."
Ceci Connolly at the Washington Post reports the daft dodge developed by Daschle:
Daschle spokeswoman Jenny Backus said that Daschle "naively" believed the car service was a "generous offer from a friend," and he discovered only last summer that it is considered reportable income.
Daschle brought the matter to the attention of the Senate Finance Committee "when he submitted his nomination forms," White House Press Secretary Robert Gibbs said in an e-mailed statement tonight. "We are confident the committee is going to schedule a hearing for him very soon and he will be confirmed."
So why this became a story during the traditional Friday night news dump, when fewer people are paying attention to what's going on (and Rush Limbaugh and Sean Hannity have to wait almost 72 hours before they can pounce on their radio shows)? How long have any senators known about this, and if it's more than about 24 hours, why didn't this break once it was known?
Best question: Is six figures the limit before a tax problem becomes important enough to stop a nomination? Do I hear seven?
But the real entertainment in this will be seeing how (probably not "if") the Associated Press and other media outlets minimize the significance of the Daschle Dodge. Will they pull out their Geithner words again ("Goofs." "Discrepancies"), or get even more "creative"?
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters
Editor at Large
Comments Policy
Criminal Behavior
January 30, 2009 - 23:57 ET by slickwillie2001Congress and the President must realize that the citizens' willingness to pay income taxes depends on our belief that all are treated equally. The income tax runs on the honor system. If us little people start to think that we are the only ones following the rules, the entire system could fail. If three hundred million Americans stop paying income taxes, what will the government do? This is very dangerous territory we are entering and when Obammy blows it off it just makes it worse. This is serious stuff.
As well as the bill introducing the 'Rangel Rule', we need a bill that FORBIDS the IRS from waiving tax penalties on anyone employed by the federal government.
PS In the case of Geithner and Daschle, are the states that they reside in investigating their evasions of state income taxes? If not, why not?
MORE Democrat corruption...
January 31, 2009 - 07:07 ET by TailgunnerDaschle's a tax cheat who should be in prison.
He wouldn't have repaid a dime of that money if he had not been nominated as HHS.
It's the same pattern as Geithner. Only when the tax issue might become public do they settle it, and not before.
How many times must we have our intelligence insulted by the crap that Dems spoonfeed us every time one of their members is caught redhanded evading taxes, selling influence, committing perjury and obstruction, and stealing and destroying state secrets?
We're always being told that it's 'sloppiness', 'oversight', an 'honest mistake', or 'forgetfulness'.
Democrats are either the most incompetent or the most corrupt party in America.
Remember how Dems treated Joe the Plumber when it was revealed that he had tax liens?
Even though a court official told the media he was '99.9% sure' Joe wasn't even aware of the lien, Dems savaged him in an effort to distract from Obama's damaging admission that he intended to 'spread the wealth around'.
Another corrupt Democrat. Nothing to see here, folks, move along.
You are forgetting: they
January 31, 2009 - 07:28 ET by motherbeltYou are forgetting: they were both chosen by The Obama, who has decreed that regardless, these are the people who we need to lead us out of the wilderness, so all is forgiven.
Someone asked the other day "Did they not VET these people before naming them????
I'm guessing they did, but thought it they might be able to slip it by, in what they see as the current mood. And they apparently are right; the Republicans in the Senate will roll over again.
Apparently "change" means that it's OK to be a tax cheat, if The Obama chooses you.
There is a saying "You begin as you intend to go on."
This will not be the last time that the friends of The Obama will skate without penalty for their "mistakes."
the scope of ineptitude is breathtaking.
January 31, 2009 - 00:24 ET by jondelwicheHis Senate seat/Blago debacle......
Richardson, Geithner, and now this.
This is the leadership that is supposed to save America?
We had all better get ready for some UGLY years!
Gee, how did Fannie Mae ever happen?
Me thinks I'z figurin' it out.
Hometown coverup for Puff
January 31, 2009 - 00:36 ET by nkviking75Just out of curiosity, I checked the website of Daschle's hometown newspaper, the Aberdeen (SD) American News. As of 11:30 Friday night CST, you have to scroll all the way to the bottom of the page to find a link to the story relating to the pride of the Hub City, as Aberdeen is known. And to absolutely no one's surprise, the AP story "neglects" to mention that Daschle is a Democrat and once held Harry Reid's current position as Senate Majority Leader for the donkeys.
The story is completely missing from the front page of the website of the Sioux Falls Argus Leader, the state's largest paper.
When you put the clowns in charge, don't be surprised when a circus breaks out.
Do not pay any taxes....
January 31, 2009 - 00:42 ET by ScrapironIf you are self employed or own a small business there is no way they can do anything if you refuse to pay federal taxes.
I would now like to see a 100% audit of the Chairman and his wife's income/taxes. They have made millions without productive employment so something stinks there anyway. How much tax did they pay?
The Lame Stream Media hypes have their head up his a** so deep they can't see daylight or they would be on this like a June Bug on a fresh cow pie. Why aren't the democrats demanding the Chairman not hire criminals and demanding Rangel be kicked out of congress and prosecuted?
Old, Retired and glad of it.
Iceland in America
January 31, 2009 - 01:24 ET by dasherI was just wondering what it would take to get the entire executive branch and majority party to resign here. Iceland had them on the run pretty quick. Keeping up my hopenchange.
"Liberalism is just Communism sold by the drink." P.J.O'Rourke
I've been thinking about that
January 31, 2009 - 08:21 ET by choselife3xWhat they had going for them is that Iceland is so small that it was easy for enraged citizens to go to the capital. Nobody had to travel all that far. A lot of our angry people simply can't afford to just go to D.C. for a protest.
In order to be pro-choice, one must first be born. Ah, the irony.
More on Daschle
January 31, 2009 - 02:30 ET by slickwillie2001Update from Tapper -Daschle's problem more significant than earlier reports. "Mr. Daschle also didn't report $83,333 in consulting income in 2007." Also some problems with charitable donation deductions. As with Geithner we should expect a drip, drip, drip of information coming out on this. Is Daschle also so brilliant that he is the only one that can do the job he has been chosen for??
http://blogs.abcnews...
Allow me to play the fourth
January 31, 2009 - 04:41 ET by RR GOPAllow me to play the fourth estate here for a moment:
"Blah blah blah, taxes, blah blah blah, Countrywide, blah blah blah, illegal nanny, blah blah blah, but ____ is expected to be confirmed anyway."
One of the 24% who thinks George W. Bush was a great President. One of the 89% who wants to bring back the stock and pillory.
It still p's me off..........
January 31, 2009 - 06:49 ET by old crothat Geithner passed the nomination.
I'm wondering - will some SD flunky in government check into the tax records of the driver? About 35k for car and driver, what were they, a Ford Focus and a 16 year old driver on minimum wage?
ocro
January 31, 2009 - 10:13 ET by ThisnThatI beleive the $35K is the tax amount Dashel owes on the unreported income. The income itself is said to be the following: $73,031 in 2005, $89,129 in 2006 and $93,096 in 2007. So, he has to pay back taxes and interest (note: NO PENALTIES) on a total of $255,256 income he failed to report.
As Obama says -- this shouldn't hinder his confirmation. BUT if Joe the Plumber ever made $250,000 -- well, Obama would want to redistribute that as wealth. Probably directly into Dashel's hands.
___________________________________
The challenge is to follow a consistent plan despite inconsistent prices - Sarah Palin, State of the State of Alaska speech
Duhhhh, your correct.........
February 1, 2009 - 05:00 ET by old croI don't know what I was thinking. Government taxation is not 100%, yet. ;)
Seems to me like another argument for the "Fair Tax"
January 31, 2009 - 07:03 ET by JohnMcGrewDaschle and Geithner wouldn't have these problems if we were to scrap the tax code.
In fact, we wouldn't have most of our current economic problems if we were to scrap our current tax code.
john, i don't think we can look for the fair tax any time soon!
January 31, 2009 - 07:31 ET by clinging to my guns and my religionafter all, why should the "tim geithner show" call for any changes in a format that has served him so well up until now? the current tax codes provide perfect cover for the exact situations that we are seeing with him and with daschle. of course, the latter will be confirmed, just as the former was. dims apparently see it as their "patriotic duty" to evade taxes if they feel they can get away with it!
"When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle." Edmund Burke
May be sooner than you think
January 31, 2009 - 08:05 ET by JohnMcGrewThe upside to the current insanity in Washington is an increasing awareness of the "silent majority" of how our tax code has become less a tool of collecting revenue, and more of a spoils mechanism where the politicians dole out rewards to their benefactors. (Example; the current "stimulus" bill)
One of the few legitimate arguments against the "Fair Tax" is the economic disruption it would cause the economy. Well, the economy is already disrupted. There's no better time to go for it.
Over the next few years as the economy continues to stagnate and government becomes even more obviously dysfunctional, people will become more receptive to real "change". It's going to be up to us to make people aware of this opportunity at the grass root level, because it's not going to come from Washington, or today's GOP.
at our accounting firm,
January 31, 2009 - 08:31 ET by clinging to my guns and my religionwe are constantly informing our clients about the "fair tax". i agree that this current economic situation could open john q. public's eyes to the need for a major change in the tax codes. unfortunately, i don't feel very optimistic about significant changes any time soon. we are in the hands of an administration that wants government to be the "be-all, end-all". i think overhauling the irs would be counter-productive to "the one's" plan! you are right that the effort is going to have to come from the grass-roots level. at this point, i just hope we can survive the next four years until we can get someone in power who has a clue that bigger government and socialism are not the correct answers. in the meantime, there are the mid-terms and an opportunity to throw some of these bums out!
"When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle." Edmund Burke
The mid-terms will be the key
January 31, 2009 - 13:01 ET by JohnMcGrewWhat we need are some energetic upstarts unbeholden to the GOP status-quo who are economically literate, verbose, and able to explain how the tax code IS the spoils system. That will but the breaks on, like they did in '94. Once people get both educated and upset, who knows about '12.
May be sooner than you think
January 31, 2009 - 09:56 ET by JohnMcGrewThe upside to the current insanity in Washington is an increasing awareness of the "silent majority" of how our tax code has become less a tool of collecting revenue, and more of a spoils mechanism where the politicians dole out rewards to their benefactors. (Example; the current "stimulus" bill)
One of the few legitimate arguments against the "Fair Tax" is the economic disruption it would cause the economy. Well, the economy is already disrupted. There's no better time to go for it.
Over the next few years as the economy continues to stagnate and government becomes even more obviously dysfunctional, people will become more receptive to real "change". It's going to be up to us to make people aware of this opportunity at the grass root level, because it's not going to come from Washington, or today's GOP.
If Senator Ted Stevens, Republican, Alaska...
January 31, 2009 - 07:17 ET by Red Jeep...had changed parties before his tax problems were known, would he still be a Senator?
Using a word Daschle uses often, disappointed, I am so, so, disappointed in the course Senator Daschle choose to take. (Joke)
Geithner's $40,000
January 31, 2009 - 07:21 ET by kiwikitmight have been more than $100,000 had he be treated like a normal tax cheat and
required to pay penalties! Is this Clinton redux or what? Only difference is that this crew is so arrogant they can't be shamed out of taking jobs for which they're nither quoalified nor worthy!
hey jeep,
January 31, 2009 - 07:28 ET by clinging to my guns and my religionthat's a rhetorical question, right, lol!?
"When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle." Edmund Burke
Yes
January 31, 2009 - 07:30 ET by Red JeepIf Ted Stevens were a Democrat, no problem, just an oversight.
dim gene pool
January 31, 2009 - 07:28 ET by CatherwoodIf Dashle and Pelosi procreated, the result would be Harry Reid.
you just dont understand
January 31, 2009 - 08:02 ET by sawing battathere's no issue here....
...because Daschle CARES. he was just trying to get from one good deed to another. He "cares" and people always give him stuff for free. Pay for it himself? Silly Rabbit.
....why are you nasty conservatives being so awful? cant you see he cares...about people? why dont you all just cork it...you have $335MM worth of STD prevention and $4B of Acorn payments to make. oh, wait, make that $335,101,943
→ Daschle
January 31, 2009 - 08:29 ET by Cool ArrowBuilding the most corrupt Administration in history.
Ask not what your country can do for you. Ask what you can do for your country - Khalil Gibran
Daschle the Gullible
January 31, 2009 - 08:46 ET by motherbeltI'm surprised the Washington Post is even covering this (well it's big enough that I guess they have to) but they are, on page one of the web edition.
Accordint to Daschle; these were all innocent errors.
He thought the car and driver was a gift from a friend...
The equity firm made the mistake that caused Daschle to not disclose his speaking fees...
He didn't provide proper documentation for $15,000 in charitable contributions over three years.
I do my taxes with Turbo Tax, and it specifically tells you what documentation you need if you contribute more than $500. To accept Daschle's claim that either he or his tax preparer were unaware of this requirement requires "the willing suspension of disbelief."
Of course, it's just not possible that Mr. Daschle filed a "careless" tax return in the hope that he wouldn't get tagged for a random audit....but then, darn it, he got tagged for this job!!
For both him and Geithner, this is like allowing a robber to just give the money back and letting him go because he "made it right."
Hey, this is no big deal,
January 31, 2009 - 09:27 ET by msh1973Hey, this is no big deal, the idiots in the Senate confirmed Geithner. Don't you know the Washington folks live by a different set of laws and rules. Get with it people!
Watch Republicans
January 31, 2009 - 09:35 ET by okiehawk44Let's keep a sharp eye on the Senate Republicans who can and should ask their former colleague some really hard questions prior to his confirmation.
If they just throw softballs at him, it will disclose that they too are tax cheats who have yet to be called to account.
Where's the MSM?
January 31, 2009 - 11:45 ET by pbthinkerThe phony American media types claim they go after Republicans so agressively, on their foibles, because of the hypocrisy involved. They're the part of morals so, if they're immoral, the press lays into them.
Well, the Democrats are the party of taxes. They've never met a tax they didn't want to impose on "the other people". Obama has said he wants to make taxes fair, by raising the capital gains tax. Let's face it, the Democrats have no clue what taxes do and who has to pay them, when they inact their legislation. One thing's for sure, if you impose taxes on people you should be scrupulous in your own filings. The press should be on all the Democrats, but they're not. It's not Geithner and Daschle, it's Rangel, Dodd, Obama's Chicago friends, etc. I'll bet, since they're the party of trial lawyers, you could find more crooks in there than you could shake a stick at.
Where's the right-wing media when you need them?
Election 2008-God's way of showing us that elections count.
No Surprise here
January 31, 2009 - 14:12 ET by RD KingThis group from top to bottom are all corrupt and about as Anti-American as you can get. Clueless is most likely the most corrupt of them all.
Raise our taxes?
January 31, 2009 - 17:31 ET by klchadwickThis seems typical of Liberals that continually vote to raise our taxes, yet fail to pay their own. Before the confirmation of Timothy Geithner, I wrote to the U.S. Senators of my state, Florida. The response that I received back from Senator Bill Nelson infuriated me like no other.
First of all the letter that I received back was of course after the nominee had already been confirmed. In his response, Sen. Nelson(D-FL) state and I quote "Mr. Geithner admitted an honest mistake on his taxes and the IRS agreed, choosing not to penalize him. Also, all taxes owed were paid with interest.". He went on to inform me that Mr. Geithner is the only one that is ready to act and that is what we need in this particular economic environment. Along with this, he proudly stated that he voted to confirm Geithner.
While I disagree with Sen. Nelson's politics, I am particularly insulted at the simplification and tone of the response that I received. I wrote back to Sen. Nelson regarding this issue, indicating that I believe that his response was geared toward the lowest common denominator. In light of the issues that have now arose regarding Daschle, I am wondering if Sen. Nelson and other Democrats are going to see this as just another "honest mistake". An mistake that was made multiple years in a row, yet was rectified once a nomination came their way does not have the air of honesty to me and I doubt that I am the only one that feels this way.
Why are the Liberals playing us for fools?
kichad
January 31, 2009 - 17:33 ET by BlondeI too, wrote to Sen. Nelson...only in regard to the stimulus (so-called) bill.
Here's what I got back:
Thanks, Bill!
How condescending can these Congresscritters possibly be?
very
February 1, 2009 - 15:35 ET by klchadwickIt seems that when writing to a member of Congress regarding an issue that you oppose and they generally support, they are VERY condescending. I couldn't help but reply to Sen. Nelson's response, even though my reply will more than likely be ignored. I don't want to seem like I'm getting into a "pissing contest" with a U.S. Senator, but I did want to let him know that I didn't appreciate the talk down that I received. In the last paragraph of my reply, I stated:
"I appreciate the fact that you took the time to respond to my concerns however, I do not appreciate the sentiments expressed in the response I was given. It is not just that the response was totally against my beliefs, it is that the information contained in the response was an insult to me and my own intelligence. I myself have used TurboTax in the past, yet I have managed to complete my tax returns without issue. Does this make me qualified to be the Secretary of the Treasury? "
My husband swears that I'm going to be audited this year! ;0)