I have noticed a pattern... It seems like several Obama cabinet nominations have a problem paying their taxes. This is the biggest hypocrisy because these people are the 'rich' ones who Obama targets to increase taxes. Yet somehow these weasels have worked out scams to avoid paying. How can someone sit in a position of authority yet have a history of violating the law for their own well-being. I have nothing but contempt for both Daschle and Geithner...
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http://news.yahoo.com/s/ap/20090131/ap_on_go_pr_wh/daschle_taxesWASHINGTON – Former Sen. Tom Daschle's failure to pay his taxes on time isn't expected to derail his confirmation as health secretary for the Obama administration, Republicans and Democrats say.
Daschle, the South Dakota Democrat chosen to lead President Obama's 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.
Daschle's spokeswoman said Saturday that Daschle told senators about the tax problems when he met individually with his former colleagues, who asked him to let the committee disclose the tax returns.
"Sen. Daschle made a mistake which he deeply regrets," spokeswoman Jenny Backus said. "He filed amended returns and paid all taxes and interest before he sent his paperwork to the Senate Finance Committee. He's answered all their questions promptly."
Republicans grudgingly acknowledged that any serious damage to Daschle's chances for confirmation in the Democratic-controlled Senate are unlikely given that Timothy Geithner's nomination for treasury secretary, held up after it was revealed that he had failed to pay more than $34,000 in taxes, eventually was confirmed by a 60-34 vote.
The White House insisted Daschle would move forward in his new role. Jim Manley, a spokesman for Senate Majority Leader Harry Reid, D-Nev., also predicted Daschle would be confirmed.
The White House acknowledged Friday that "some tax issues" had emerged in connection with Daschle's nomination, but a spokesman said the president is confident the former Senate Democratic leader will be confirmed as the new health secretary.
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. He 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.
Backus said the unreported income was the result of an error while the company's clerk was on maternity leave. The end-of-the-year tax documents omitted May's payment.
Beginning in 2005, Daschle was provided the use of a car and driver from his friend of 15 years. Charges for the car and driver services were billed to InterMedia.
"Sen. Daschle told staff that in June 2008, something made him think that the car service might be taxable and disclosed the arrangement to his accountant," said the committee statement. "Sen. Daschle estimated that he used the car and driver 80 percent for personal use and 20 percent for business use. On Jan. 2, 2009, Sen. Daschle filed amended returns for 2005, 2006 and 2007 reporting the value of the car service as income."
The committee is scheduled to meet in executive session to discuss Daschle's nomination on Monday. A Democratic aide declined to comment on any issues discovered in the vetting process.
White House spokesman Bill Burton said Daschle's role in the new Obama administration was not in danger.
"The president has confidence that Sen. Daschle is the right person to lead the fight for health care reform," 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."
Daschle, 61, was one of Obama's first announced Cabinet choices. He was also offered a newly created post, director of the White House Office on Health Reform. Combined, the two titles would give the former South Dakotan large sway over a campaign to change how the country addresses its health care and insurance systems.
Topic: Obamas cabinets tax problems (Read 387 times)