http://online.wsj.com/article/...tml?mod=googlenews_wsj
Tom Daschle, President Barack Obama's choice for secretary of Health and Human Services, paid about $140,000 in back taxes and interest after questions surfaced during the vetting of his nomination, according to documents being prepared by the Senate Finance Committee.
Mr. Daschle made the payments to cover a luxury car and driver provided to him by an investment firm where he was an adviser after leaving the U.S. Senate in 2005, but which he didn't report as income, people familiar with the report said. The payments also covered unreported consulting income and unwarranted charitable deductions. The tax period covered 2005 through 2007.
Mr. Daschle told committee staff that he had grown used to having a car and driver as Senate majority leader and didn't think to report the perquisite on his taxes, according to staff members.
It isn't clear whether the tax issue will affect the Senate confirmation prospects of the former South Dakota senator. Mr. Daschle is one of the few Obama cabinet choices who hasn't yet completed his confirmation hearings. Most of Mr. Obama's cabinet choices were confirmed shortly after he was inaugurated on Jan. 20.
"The president has confidence that Sen. Daschle is the right person to lead the fight for health-care reform," said White House press secretary Robert Gibbs in response to the revelations, adding: "We are confident the committee is going to schedule a hearing for him very soon and he will be confirmed."
Mr. Gibbs said, "In preparation for his nomination, Sen. Daschle and his accountant identified some tax issues and fixed them. They filed amended returns 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."
Mr. Daschle is the second Obama cabinet choice to run into political turbulence over back taxes. Treasury Secretary Timothy Geithner's confirmation was delayed a few days after revelations that he had failed to pay $34,000 in Social Security and Medicare taxes over several years while working for the International Monetary Fund. Mr. Geithner, like Mr. Daschle, paid the back taxes when questions were raised about his liabilities during the legal vetting of his nomination.
Mr. Geithner ultimately was confirmed by the full Senate in a 60-to-34 vote. But the number of negative votes was unusually high for a cabinet choice. Mr. Geithner also weathered the controversy in part because a number of senators argued that it was crucial, in dealing with the financial crisis, to have a Treasury secretary in place quickly.
Some senators have also raised concerns about two vacation trips Mr. Daschle took aboard a corporate jet belonging to nonprofit lender EduCap, which faces a separate probe by the Finance panel into its tax status.
The Wall Street Journal first reported in mid-January that Senate questions about Mr. Daschle's finances had slowed his confirmation process.
The Finance Committee prepared a four-page staff memorandum for members after Republicans on the panel grew restive over the long confirmation delay. According to the memo, Mr. Daschle paid well $140,167 in back taxes and interest during the vetting process, amending tax returns from 2005 through 2007.
The years cover the period immediately following his defeat in his race for re-election as a senator from South Dakota in 2004. Shortly after leaving the Senate, Mr. Daschle began consulting work.
During the vetting process to become HHS secretary, Daschle corrected the tax violation, voluntarily paying the back taxes plus interest, working with his accountant to amend his tax returns for 2005 through 2007. He filed the amended tax returns on Jan. 2.
The changes reflected unreported income from the use of the car service valued at $255,256 for those three years, according to the Finance Committee report. He also amended his returns to cover $83,333 in unreported consulting income for 2007. And he reduced his charitable contributions by $14,963.
The tax issue will dominate a meeting of the panel Monday, according to committee aides. Mr. Daschle's confirmation has been held up for weeks as committee staffers pore over the tax records and business ties of Mr. Daschle.
Mr. Daschle was supplied a car and driver by InterMedia Advisors LLP, an investment firm specializing in buyouts and industry consolidation. Mr. Daschle served as chairman of the firm's executive advisory board.
I guess all we have to do is keep rejecting Obama cabinet members and keep processing new nominations. Should balance the budget in no time as everyone mysteriously finds new tax liabilities from previous years.
What is it with the Geithner/Rangel/Dasshole crowd not paying their fair share?
Tom Daschle, President Barack Obama's choice for secretary of Health and Human Services, paid about $140,000 in back taxes and interest after questions surfaced during the vetting of his nomination, according to documents being prepared by the Senate Finance Committee.
Mr. Daschle made the payments to cover a luxury car and driver provided to him by an investment firm where he was an adviser after leaving the U.S. Senate in 2005, but which he didn't report as income, people familiar with the report said. The payments also covered unreported consulting income and unwarranted charitable deductions. The tax period covered 2005 through 2007.
Mr. Daschle told committee staff that he had grown used to having a car and driver as Senate majority leader and didn't think to report the perquisite on his taxes, according to staff members.
It isn't clear whether the tax issue will affect the Senate confirmation prospects of the former South Dakota senator. Mr. Daschle is one of the few Obama cabinet choices who hasn't yet completed his confirmation hearings. Most of Mr. Obama's cabinet choices were confirmed shortly after he was inaugurated on Jan. 20.
"The president has confidence that Sen. Daschle is the right person to lead the fight for health-care reform," said White House press secretary Robert Gibbs in response to the revelations, adding: "We are confident the committee is going to schedule a hearing for him very soon and he will be confirmed."
Mr. Gibbs said, "In preparation for his nomination, Sen. Daschle and his accountant identified some tax issues and fixed them. They filed amended returns 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."
Mr. Daschle is the second Obama cabinet choice to run into political turbulence over back taxes. Treasury Secretary Timothy Geithner's confirmation was delayed a few days after revelations that he had failed to pay $34,000 in Social Security and Medicare taxes over several years while working for the International Monetary Fund. Mr. Geithner, like Mr. Daschle, paid the back taxes when questions were raised about his liabilities during the legal vetting of his nomination.
Mr. Geithner ultimately was confirmed by the full Senate in a 60-to-34 vote. But the number of negative votes was unusually high for a cabinet choice. Mr. Geithner also weathered the controversy in part because a number of senators argued that it was crucial, in dealing with the financial crisis, to have a Treasury secretary in place quickly.
Some senators have also raised concerns about two vacation trips Mr. Daschle took aboard a corporate jet belonging to nonprofit lender EduCap, which faces a separate probe by the Finance panel into its tax status.
The Wall Street Journal first reported in mid-January that Senate questions about Mr. Daschle's finances had slowed his confirmation process.
The Finance Committee prepared a four-page staff memorandum for members after Republicans on the panel grew restive over the long confirmation delay. According to the memo, Mr. Daschle paid well $140,167 in back taxes and interest during the vetting process, amending tax returns from 2005 through 2007.
The years cover the period immediately following his defeat in his race for re-election as a senator from South Dakota in 2004. Shortly after leaving the Senate, Mr. Daschle began consulting work.
During the vetting process to become HHS secretary, Daschle corrected the tax violation, voluntarily paying the back taxes plus interest, working with his accountant to amend his tax returns for 2005 through 2007. He filed the amended tax returns on Jan. 2.
The changes reflected unreported income from the use of the car service valued at $255,256 for those three years, according to the Finance Committee report. He also amended his returns to cover $83,333 in unreported consulting income for 2007. And he reduced his charitable contributions by $14,963.
The tax issue will dominate a meeting of the panel Monday, according to committee aides. Mr. Daschle's confirmation has been held up for weeks as committee staffers pore over the tax records and business ties of Mr. Daschle.
Mr. Daschle was supplied a car and driver by InterMedia Advisors LLP, an investment firm specializing in buyouts and industry consolidation. Mr. Daschle served as chairman of the firm's executive advisory board.
I guess all we have to do is keep rejecting Obama cabinet members and keep processing new nominations. Should balance the budget in no time as everyone mysteriously finds new tax liabilities from previous years.
What is it with the Geithner/Rangel/Dasshole crowd not paying their fair share?
