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Daschle Did Not Pay All His Taxes Either

From the Wall Street Journal:

Daschle Paid Back Taxes After Vetting


JANUARY 31, 2009

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…

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." …

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 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…

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.

It’s hard to see what is the problem. Mr. Daschle was just playing by ‘Rangel/Geithner Rules.’

After all, he is a Democrat. And Democrats only have to pay their taxes when they are caught – or going back to the government trough for more.

And maybe not even then.

You can see the full Senate Finance Committee statement here.

(Thanks to BillK and everyone who sent this in.)

This article was posted by Steve on Saturday, January 31st, 2009. Comments are currently closed.

26 Responses to “Daschle Did Not Pay All His Taxes Either”

  1. BillK says:

    Yet another Democrat shows only the “little people” pay taxes.

    From Fox News:

    White House: Daschle Had ‘Tax Issues,’ Shouldn’t Bar His Cabinet Confirmation

    The news of Health and Human Services Department nominee’s tax troubles comes on the heals of an uproar over the tax troubles of Obama’s treasury secretary

    The White House has acknowledged that former Sen. Tom Daschle, President Obama’s nominee to head the Department of Health and Human Services, had “some tax issues,” which, the administration says, have been resolved and shouldn’t bar his confirmation as secretary.

    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, longtime friend and business associate of Daschle .

    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.

    The unreported income for the car service totaled more than $250,000 over three years.

    Hindery founded InterMedia Partners, a private equity firm, in 1988. Daschle was paid $1 million annually for his consulting services, the Senate Finance Committee said.

    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 a Senate Finance Committee document. The document, marked “Confidential Draft,” is a committee statement concerning Daschle’s nomination.

    The White House issued a statement Friday night affirming that Daschle “is the right person to lead the fight for health care reform.” …

    Senate Majority Leader Harry Reid’s office released a statement Friday strongly backed Daschle despite the new revelations.

    “Senator Daschle will be confirmed as Secretary of Health and Human Services,” Reid spokesman Jim Manley said. “He has a long and distinguished career and record in public service and is the best person to help reform health care in this country. Senator Reid looks forward to a swift hearing and is confident Daschle will be confirmed.”


    Daschle made $1 million annually for “consulting purposes” but CEO pay is extravagant?

    Why do I somehow think the IRS won’t be assessing penalties against Daschle, either.

    But remember, all Democrats are being treated “no differently” than any other taxpayer…

  2. Enthalpy says:

    This is but one more example of what a pitiful job our press is doing to inform us. There should have been exhaustive articles vetting all of the slimes President Obama has chosen for his government. If not for the Internet where would we be? Where are we with it?

  3. BigOil says:

    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.

    Once again, the pervasive entitlement mentality of the Democrat party rears its ugly Jackass head. It doesn’t matter whether it is the bottom feeder Democrats we subsidize with our taxes or the Daschle elites that expect free perks for life – it’s all the same. Parasites sucking the lifeblood from our country.

  4. Barbie says:

    Since Obama and the Dems are so insistent on rebuilding infrastructure, perhaps they could start by repairing that sewer line coming from the White House – it’s really starting to stink…

  5. heykev says:

    Why are the rich (and former Senators whose wife’s a lobbyist) more equal than others? Why would ANYONE aside from the President need a driver within our governmental system?

  6. curvyred says:

    Silly consevatives: don’t you know taxes are only for the peons.

  7. U NO HOO says:

    I thought Tom DeLay and Newt Gingrich were supposed to be the scum of the earth?

  8. Lisa22 says:

    Okay, do any of the guys around Obama pay their taxes? Anyway, the rich Dems don’t care because they have so many loopholes to get around all that – sad for the rest of us!

    • proreason says:

      Example: Theresa Kerry reported about $600,000 in taxes on her fortune of $1 billiion in 2003.

      She declared $5 million in income, about 1/2 of 1% of her nest egg. She must be unlucky because the stock market went up 26% in 2003.

      If you made $100,000 that year, you would have paid about 20K+ in taxes. In addition, don’t forget 15K in FICA (including employer match), which the Madame did not pay….so you would have paid about 35% in taxes vs her 1/2 of 1%.

      Since that was a year when The Traitor was under scrutiny, it’s safe to assume Madame paid a lot more than usual and safe to assume other rich parasites pay even less.

      But they work overtime to smear CEO’s who pay taxes of 35% on their incomes (which they actually work to earn).

    • gipper says:

      Yeah, but Mrs. 57 Varieties doesn’t really earn money, proreason. I’m sure she stays away from the stock market, too. She probably invests in tax-free investments like municipal bonds. Therefore, her tax bill is minimal.

      Having said the above, I don’t think I would want her or anyone’s nest egg to be taxed. I know, I know. It seems so unfair that the filthy rich don’t pay much income tax. But I don’t want to journey down the road where both income AND accumulated wealth is taxed. I’m middle class and have a few investments, and it pains me that I have to pay taxes on dividends, capital gains, and interest when the money I used to invest had ALREADY been taxed. It’s like paying double taxes. Any more taxes, and it would be better to stick my money under a mattress.

      The answer to the above problems is CONSERVATISM.

    • proreason says:

      You know gipper, I wouldn’t give a flip either…..except that they are the people screaming for higher taxes for you and me.

      They started class warfare to gin up hatred and get the marxists elected.

      And it isn’t about socialism. They couldn’t care less. They just want to make sure that their fiefdoms are invoilate.

      The top 100,000 families in the U.S. control 25% of the wealth of the country, and contribute nothing……while hollering from the rooftops about how unfair the country is to the poor creatures who vote their poolboys into office so the aristocratic parasites can continue contributing nothing. To illustrate, if they paid taxes of 5% on their fortunes (much, much less than you and I pay), it would be about $1 trillion a year. That could help with some of our unemployment and financial problems, donchathink?

      If they ran businesses, or invested in the private markets, or worked, or really gave to charity instead of calling their social lives charities, then I might feel differently.

      One thing you know for ABSOLUTE sure is that they aren’t lending any money to people who can’t pay it back. And they ain’t investing in green technologies either, or letting windmills be built in their view.

      And you can also be sure that they are going to do everything they can to prevent YOU from reaching their exhalted status. There isn’t much room at the top.

      They are parasites. Crooked parasites.

      And oh yes, these are the people instigating the demonization of CEO’s, who actually DO work and pay huge amounts of taxes.

      If there is any class that deserves the invectives hurled by the Democratic leadership, it is their own parastic money-men. Evil. Very evil. They bought and paid for The Moron. You can see what is happening with that.

  9. caligirl9 says:

    “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.”

    Oh please. Cars and drivers just don’t grow on trees.

    But it’s okay folks because he’s a dem and they wouldn’t do anything harmful on purpose. Honest.

    An unrelated aside: Yesterday I had to do a bit of work at a local community college. As I was gimping into the student center, I could not help notice the signage and posters that covered every available inch of space on walls and windows—all posters of TCO with his favorite mottoes.

    The brainwashing of our youth continues. Why can’t we, as the taxpaying public, ask that schools at least pretend to be neutral when it comes to political parties? Why is it that dems are touted as pro-education and we are against it? Maybe we are a bit more selective in defining education and the understanding that “college and university” isn’t for everyone and that in many cases vocational education is the way to go?

  10. 1sttofight says:

    Everyone should change their withholding to 10 dependents. When tax filing time rolls around and you file your taxes, instead of enclosing a check, put a little note on it saying, ” I will consider paying my taxes when I get a cabinet level job offer”.

  11. caligirl9 says:

    The more I think about this back taxes crap the angrier I get.

    I am doing my best to pay a tax debt. I wish I were in a position to just write a check and be done with it. My California taxes are paid and I’m dealing with the feds now.

    Yet all of these Cabinet nominees just say oopsie my bad and write a check, which means they have the money to pay those taxes. I would love to have been able to just pay my taxes on time, just write a check and good to go.

    They are just trying to get away with stiffing the government in more ways than just holding government jobs. That should make all of us angry, regardless of political affiliation.

  12. Confucius says:

    It looks like Obama is hiring from the IRS’ Most Wanted List.

  13. pinandpuller says:

    Sally Jesse Raphael: “Where the heck did I leave my GLASSES?”

  14. VMAN says:

    What’s the problem? It’s no different than the thugs and criminals that Hitler had around him. Oh wait, I forgot, conservatives are the Nazis. But wait Nazi stands for National Socialist Party. Doesn’t that better describe the Nazicrats oops I mean Democrats. I’m sooooo confused.

  15. wardmama4 says:

    We The People must get behind Rep. John Carter’s (R-Texas) legislation that is called the, “Rangel Rule” to get in the Dems faces about how two-faced and bad they are.

    You know Rush pegged the problem the other day after another person called to tell him – You have to do something. That is the problem – as long as We The People keep waiting for, wanting someone else to, insisting that only a person like Rush can – nothing will get solved or change – except to get worse.

    I guess I will do my part and go cheer on Rep Carter for at least attempting to make a valid point.

    Tax cheats, frauds and just plain tax idiots – Yes The One ™ Can – make America’s Economy even worse!

  16. merijoe says:

    I dont give a crap whether this was an honest mistake or not…how many of us can make this kind of mistake and not be held accountable for it? hmmmmm?

    30 damn years of prior public service is NOT an acceptable excuse for blowing this off because it was a mistake and not being held big time accountable. Im a nurse and have been for 30 years, thats service to the public and probably more so than his limo riding, million dollar salary getting, mobster affliated, expensive lunch going self has ever had to deal with, but if I so much as turn a patient to the left instead of the right, I will get fired, the years of service wont matter.

    According to the laws Im forced to abide by-if I dont pay my taxes Im either fined or put in jail
    I would think that someone who hasnt paid some taxes to the tune of over a mil shouldnt by any means, be placed in a high office that makes legal decisions and represents other Americans – he-lllllll-oooooo

    what a crook. How is he going to be respected?

    • proreason says:

      “How is he going to be respected?”

      The people who elected The Moron consider it normal behavior. In fact, if you DON”T do it, you must be a fool.

      Ask yourself one simple questions. Imagine you are mugged. Who do you think your mugger supported for president? (and how many times did he vote?)

    • Liberals Demise says:

      Right On!! Respect is something that is earned. (military 101)
      The current CIC expects it……as do the criminals who placed him there!!
      As do the criminals he is placing in his cabinet.

      “YES HE CAN”

  17. Al Morone says:

    Don’t pay your taxes… just claim the Rangel Rule:

    FOR decades, Texas lawyers have used the “Hobby Rule” to win the immediate release of clients arrested on DWI charges. American taxpayers now deserve similar protection under my proposed “Rangel Rule.”

    First, the background: Longtime Texas Lt.-Gov Bill Hobby was locked up one night for driving under the influence, but immediately released when his attorney came down to point out the high status of the fellow.

    When news of this special treatment slipped out, the court tried to defend itself by saying it was standard procedure to release a suspect into the custody of an attorney – though everyone knew any regular DWI inmate would have been held for bond or trial.

    Ever since, Texas lawyers have been showing up to spring their inebriated clients by exercising this previously unknown “Hobby Rule.” It’s standard legal procedure to this day.

    American taxpayers could win the same get-out-of-jail-free pass, thanks to the ongoing legal saga of my friend and colleague, Rep. Charlie Rangel (D-Harlem), and new Treasury Secretary Timothy Geithner.

    Chairman Rangel admitted on the floor of the House that he had for years failed to pay tax on rental income from his resort property in the Caribbean. He apologized for this “oversight” and agreed to pay his back taxes – but has paid no interest or penalties.

    Secretary Geithner admitted in his Senate confirmation hearings he had for years failed to pay taxes on his income from the International Monetary Fund, even though the IMF sent him checks and instructions to pay those taxes. He also called this an “oversight,” has paid no penalties and faces no charges.

    As a former practicing attorney and a Texas state judge for two decades, I can tell you: If that was you or me, we’d be socked with penalties and interest many times the amount of the original tax. In a case like Geithner’s, I suspect we’d likely face criminal charges as well.

    But Rep. Rangel is the powerful Chairman of the House Ways and Means Committee, which oversees the IRS. And Geithner is secretary of the treasury – the boss of the IRS. Just like Bill Hobby, these two high-status fellows have received a little different treatment than the common taxpayer.

    We either need to hold Chairman Rangel and Secretary Geithner fully accountable under the law – or we need a national “Hobby Rule” for taxpayers.

    Last week, I introduced the Rangel Rule Act of 2009 (HR 735). Under this bill, any US citizen who owes back taxes can pay them and automatically waive all interest and penalties by writing “Rangel Rule” on their return.

    I believe this would restore equal treatment for working Americans – and serve as an economic stimulus by restoring millions in pending IRS penalties and interests to the free-market economy.

    We all need to stay sober and pay our taxes. But if we fall short, we ought to be treated the same. In Texas, that means using the Hobby Rule after one too many. Across America, it should mean using “The Rangel Rule” after failing to pay the IRS.

  18. bobbys says:

    I like him, Any time you can find a democrat that pays some taxes and goes to work you should grab him as thats a rare find!!!

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