More Tax Problems In Obama’s Cabinet- This Time It’s Tom Daschle

Do you remember that enormous questionnaire Barack Obama made all of his potential staffers fill out? Obviously it had a gaping hole where the DID YOU PAY YOUR INCOME TAXES question should have been. First there was Geithner, now in charge of the IRS. Now, the AP is reporting it’s Tom Daschle.

Former Sen. Daschle was picked by Obama to lead his health reform efforts. He 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 AP.

The White House acknowledged Friday that “some tax issues” had emerged in connection with the nomination, but a spokesman said the president is confident the former Senate Democratic leader will be confirmed as the new health secretary. Of course he will be! If Geithner, who is now in charge of the Treasury department can skate on taxes, surely a former Senator and full-time Democrat sycophant like Daschle can get through.

So, was it a one-time goof? Hell no. You already knew the answer to that one. 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 him to head the Health and Human Services Department. I wonder how many MORE of these rush-rush late tax return filers there are up in Kool’s gang.

Most of Daschle’s 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. He 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.

Leo 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. Oops. The average American probably would have caught that 88 large.

“Senator 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. “Senator Daschle estimated that he used the car and driver 80 percent for personal use and 20 percent for business use. On January 2, 2009, Senator Daschle filed amended returns for 2005, 2006 and 2007 reporting the value of the car service as income.”

Okay, so Daschle in JUNE thinks he has a problem, but waits until January, right before the inauguration, to do something about it? Somehow I don’t think Tommy was gonna fix that problem if Obama lost. White House spokesman Bill Burton said:

“The president has confidence that Sen. Daschle is the right person to lead the fight for health care reform. 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.”

The committee document said two issues still remain outstanding concerning Daschle. It is still reviewing whether travel and entertainment services provided by an array of companies and organizations should have been reported as income. Those providing such services were EduCa, Inc., the Catherine B. Reynolds Foundation, Academy Achievement and Loan to Learn.

Also, the committee statement noted that the staff has highlighted certain donations from Daschle of more than $250. While Daschle provided staff with copies of checks, proper acknowledgment from those receiving the donations was not provided. Daschle’s returns have not been amended for those amounts. Tom, the exempt charities send you a letter acknowledging your donation. It’s the law. It isn’t just a thank-you note. If you don’t get a letter, there’s a good chance your “donation” wasn’t deductible. 501(c)3, baby. Look it up.

So, what about the ethics Barry? You called the press conference and laid down the law. You had just the right combo of “tough thug meets righteous indignation.” Oscar-worthy. But it seems your people just can’t meet the bar. Doesn’t matter, though, does it? Better get out the old “EXCEPTION” stamp again.

source: AP

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