New Obama tax-evasion scandal: Tom Daschle; Update: Even more evasion!
posted at 8:10 pm on January 30, 2009 by Ed Morrissey
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So far, the incoming Barack Obama administration has given us a tax cheat/incompetent to run the IRS (Tim Geithner) and at least three lobbyists to regulate their industries (William Lynn, Mark Patterson, Neal Wolin). Now we’re back to tax evasion, and once again it’s a major Cabinet appointment:
ABC News has learned that the nomination of former Senator Majority Leader Tom Daschle, D-SD, to be President Obama’s Secretary of Health and Human Services has hit a traffic snarl on its way through the Senate Finance Committee.
The controversy deals with a car and driver lent to Mr. Daschle by a wealthy Democratic friend, a chauffer service the former Senator used for years without declaring their use on his taxes. …
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 Yankees’ and Devils’ broadcast network).
That same year he began his professional relationship with InterMedia 2005, Mr. 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.
Daschle’s team claims that the former Senator deserves the credit for revealing the problem himself. Daschle did report this — but only after getting picked as HHS Secretary. If that sounds familiar, it’s because that’s when Geithner suddenly discovered that he owed Uncle Sam money too, only Daschle paid back a lot more: over $100,000.
How many more people will Obama nominate who either are too incompetent or too dishonest to declare all of their income and pay all of their taxes? Is this the new career track for tax cheats — a Cabinet office?
Update: Apparently, Daschle can’t even use the Geithner “I’m so stupid” excuse, as ABC also discovers that he flat-out failed to report direct income:
The report indicates that Daschle’s failure to pay more than $101,000 taxes on the car and driver a wealthy friend let him use from 2005 through 2007 is not the only tax issue the former Senate Majority Leader has been dealing with since his December nomination prompted a more thorough examination of his income tax returns.
Mr. Daschle also didn’t report $83,333 in consulting income in 2007.
Plus, Daschle claimed almost $15,000 in charitable donations over three years to organizations that don’t qualify for the deduction.
How many Americans make so much money that they could forget about $83,000 of it in a year?
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No worries, Dear Leader. Most of America will never hear about this.
Terrie on January 30, 2009 at 8:13 PM
I hope the GOP politicians manage to work this into their public comments fequently and in the near future.
“The Republicans…you know, the people who actually pay their taxes.”
“Democrats: the party of big spending and tax cheats.”
Wethal on January 30, 2009 at 8:15 PM
Zing!
RalphyBoy on January 30, 2009 at 8:18 PM
Is there room on Rep. John Carter’s bill to squeeze in Mr. Daschle’s name for the Rangel Rule? How many times will we be told that it was a simple mistake?
Cindy Munford on January 30, 2009 at 8:18 PM
Damn…………..
………. I haven’t filed my taxes yet, and I need a job.
What would you say I cheat on them, then ask the Obama administration for one?
Paging Mr. Steele…………….
Seven Percent Solution on January 30, 2009 at 8:19 PM
Dropped on a Friday night. It’ll be forgotten by Monday.
genso on January 30, 2009 at 8:19 PM
Apparently so. The Chicago machine is fully cranked up in D.C.
The Dems are corrupt, hypocritical, lying, arrogant, demagogues.
INC on January 30, 2009 at 8:19 PM
Let’s not forget the family connection – there’s a reason why Daschle never released his wife’s tax returns and records while he was in the Senate.
Aside from this latest problem, has anyone else noticed that Obama seems so intent on surrounding himself with people who would seem all-too-willing to look the other way at complying with U.S. laws? And not just tax laws?
ironman on January 30, 2009 at 8:19 PM
Its our job to make the noise very loud so they dont forget it.
canditaylor68 on January 30, 2009 at 8:22 PM
Sounds like status quo for Clinton’s old…. new administration.
Enoxo on January 30, 2009 at 8:22 PM
If you want to make a noise, here’s the Senate Finance Committee:
Democrats
MAX BAUCUS, MT
JOHN D. ROCKEFELLER IV, WV
KENT CONRAD, ND
JEFF BINGAMAN, NM
JOHN F. KERRY, MA
BLANCHE L. LINCOLN, AR
RON WYDEN, OR
CHARLES E. SCHUMER, NY
DEBBIE STABENOW, MI
MARIA CANTWELL, WA
BILL NELSON, FL
ROBERT MENENDEZ, NJ
THOMAS CARPER, DE
REPUBLICANS
CHUCK GRASSLEY, IA
ORRIN G. HATCH, UT
OLYMPIA J. SNOWE, ME
JON KYL, AZ
JIM BUNNING, KY
MIKE CRAPO, ID
PAT ROBERTS, KS
JOHN ENSIGN, NV
MIKE ENZI, WY
JOHN CORNYN, TX
I have a Dem senator on that committee.
INC on January 30, 2009 at 8:23 PM
How can the democrats say it matters with Daschle and not with Geithner? Health care can be managed by anyone, but only Geithner can save us from economic collapse? Anyone think that will fly?
If Geithner, and Rangle skate then it is ‘all skate’. Play the music. Democrats own the scandals, the government, the economy.
When reports begin to surface about misplaced funds, missing funds, kickbacks, payoffs, wasted money it will be smeared all over the democrat party.
Skandia Recluse on January 30, 2009 at 8:24 PM
Wrong again, Ed. You say that it was reported by Daschle only after he was appointed to HHS, when in fact, the article states that he paid the taxes five months before the election.
sandman on January 30, 2009 at 8:24 PM
This is the page that lists the members of the Finance Committee. Click on the name for the website of each.
INC on January 30, 2009 at 8:24 PM
That yutz, Daschle, is an embarrassment to my homestate. Expect to see more of this in the future as an Obama administration wears on.
gryphon202 on January 30, 2009 at 8:24 PM
Didnt this creep get thrown out of congress for being incomitent or incontinent i am not sure..
so now obama is hiring another creting to his cabinet
You know i have a funny feeling that
Before the first 100 days are up
Most of the FBI’s toop 10 most wanted
Will be in OBAMS cabinet..
Well it makes them easier to catch i guess
jcila on January 30, 2009 at 8:25 PM
My popcorn investment is paying off.
Kini on January 30, 2009 at 8:26 PM
Will there be anyone in Osama Obama’s administration who isn’t a lawbreaker, racist, terrorist apologist or simply freekin’ crazy as a loon? Or all of the above?
This creep makes Warren G. Harding look like Mr Clean.
MrScribbler on January 30, 2009 at 8:26 PM
Daschle, of course, had a slight tax problem back when he last ran for Senate. It didn’t sink him, but it didn’t help. He had claimed his DC residence as his primary residence to get the DC homestead exemption on his DC property tax, which didn’t sit well back in SD. Technically, he might not have been a SD resident, but Thune didn’t push that ineligiblity aspect too much. Daschle was using his mother’s address in Aberdeen as his SD address, I think.
Still, it made him look like he preferred to be a citizen of the bright lights and big city of DC, rather that one from where his hometown roots were.
Wethal on January 30, 2009 at 8:27 PM
Tom Daschle has been lobbying for the health care division of a law firm. They call it “special policy advisor” but he has been a lobbyist for the industry he has been nominated to run. But I think we know that rule has already been thrown under the bus.
Cindy Munford on January 30, 2009 at 8:28 PM
Come on now, Senators don’t say no to other Senators.
Cindy Munford on January 30, 2009 at 8:29 PM
Democrats like to raise taxes. They just don’t like paying them.
Wethal on January 30, 2009 at 8:30 PM
From the looks of things that we know about Senators, it might be that they are all guilty of similar things. Honor among thieves, I suppose. I guess we need to nominate them all for something just to see what they own up to.
genso on January 30, 2009 at 8:32 PM
Hadn’t thought about that, good point.
Cindy Munford on January 30, 2009 at 8:34 PM
In 2010 (and maybe 2012), the GOP can just take those 2006 ads the Dems ran, change the pictures (Geithner, Holder, Daschle, Murtha, Cold Cash Jefferson, Dodd, Conrad, Blago), change a few words, and have:
“Democratic Culture of Corruption.”
Wethal on January 30, 2009 at 8:36 PM
Has he played the “Turbo Tax” defense card yet?
Mallard T. Drake on January 30, 2009 at 8:36 PM
Let me start — It was just an honest mistake.
tarpon on January 30, 2009 at 8:37 PM
You people are a bunch of haters.
Dashole admitted this “discrepancy” himself, therefore he is deserving of not only forgiveness but also praise. Yes, praise I say, for being a forthright individual.
Bishop on January 30, 2009 at 8:37 PM
this stuff is just too sweet, in an ironic sort of way
also just heard on Fox that John COnyers wife may be in some sort of hot water. Most.Ethical.Congress.Ever.
Red State State of Mind on January 30, 2009 at 8:38 PM
Daschle paid the price for the seemingly free limo service.
After all, it isn’t like he was a Representative or something.
unclesmrgol on January 30, 2009 at 8:39 PM
I believe that we Americans should not pay taxes on time. Wait until August.
Let’s see if we regular Americans get the same pass as the leftus dogs in the White House.
madmonkphotog on January 30, 2009 at 8:41 PM
my answer would be “those that he held over from GWB’s administration” I haven’t heard of them being in any trouble.
Red State State of Mind on January 30, 2009 at 8:42 PM
Integrity and honesty are no longer virtues to be held in high esteem. That is the saddest reality of all.
sherry on January 30, 2009 at 8:42 PM
Daschle was just being sloppy……….
……….. and the band plays on.
Seven Percent Solution on January 30, 2009 at 8:43 PM
If this is the ethical standard for Dear Leader’s administration, is there a position high enough for Blagojevitch? Maybe next Chief Justice of the SCOTUS?
rbj on January 30, 2009 at 8:44 PM
Bishop,
Yes, because trying to get rid of the dirt during the vetting process (which he and Geithner both did) is just so indicative of someone who is always vigilant to do the right thing and voluntarily correct wrongs.
INC on January 30, 2009 at 8:44 PM
Oops. Forgot Rangel, and that wonderful picture of him sleeping on the beach. And we could throw in Spitzer to twist the knife.
Wethal on January 30, 2009 at 8:44 PM
His back tax tab is more like $140,000.
JammieWearingFool on January 30, 2009 at 8:44 PM
Somewhere in this world, there must be a culture that still holds these virtues. Anyone?
genso on January 30, 2009 at 8:45 PM
That left the White House……….
………….. with President George W. Bush.
Seven Percent Solution on January 30, 2009 at 8:45 PM
Pelosi’s “most ethical Congress ever” is being closely followed by Obama’s “most ethical executive branch ever.”
/sarc
Margee on January 30, 2009 at 8:45 PM
Obama the Empty has a Jester as a Veep. Now wonder that he has surrounded himself with a bunch of Simpletons. The Turbo-Tax Team. Paying for less of the pie so that they can take more of yours through taxes.
onlineanalyst on January 30, 2009 at 8:45 PM
And in other Friday-drop news, Obama has ordered the Pentagon to cut $10 million from their budget so he can send $20 million to the Palestinians…
Connie on January 30, 2009 at 8:47 PM
Not sure Ed, but you better go ahead and file you overtime paperwork with the boss now to avoid the rush later. Cause you goin’ to be busy writing about it all….
Hog Wild on January 30, 2009 at 8:48 PM
Not haters — just bitter.
But I agree with you — Daschle should be forgiven, because he was forthright. However, I don’t think Obama should be forgiven for his part in crashing our economy (CitiGroup comes to mind), because he was smart enough that he should have known better that the money for 0% down must eventually come from somewhere.
unclesmrgol on January 30, 2009 at 8:48 PM
I’m disappointed.
In keeping with the office, I was expecting Medicare fraud.
cs89 on January 30, 2009 at 8:48 PM
Can we just start nominating every Democrat in the U.S. for a cabinet post?
Once they each get nominated and pay their taxes, the deficit will be wiped out, and a good chunk of the national debt.
malclave on January 30, 2009 at 8:48 PM
More than we’ll hear “common mistake,” as few people have limos and drivers at their disposal.
Wethal on January 30, 2009 at 8:48 PM
Somewhere in this world, there must be a culture that still holds these virtues. Anyone?
genso on January 30, 2009 at 8:45 PM
The nation of San Marino.
Bishop on January 30, 2009 at 8:50 PM
Daschle was only been “forthright” because he was going through the vetting process.
He knew this was wrong.
INC on January 30, 2009 at 8:51 PM
Let me start — It was just an honest mistake.
tarpon on January 30, 2009 at 8:37 PM
Followed by “I won”.
artist on January 30, 2009 at 8:51 PM
Yah know, think about this: The vote to spend and then make sure that we pay via taxes…that they don’t pay.
Taxes and laws and lower thermostat settings for thee but not for me!
Amendment X on January 30, 2009 at 8:52 PM
Why are our choices duplicity or incompetence?
Cindy Munford on January 30, 2009 at 8:52 PM
unclesmrgol on January 30, 2009 at 8:48 PM
I’m sorry, but in case you were unaware Ogabe is black and thus free of any possible taint from the past, present or future.
If you must blame someone, blame whitey.
Bishop on January 30, 2009 at 8:52 PM
Follwed by “He’s the only person in the country who can do this job.”
Wethal on January 30, 2009 at 8:52 PM
Unfortunately, because of the Geithner precedent, DashBoy must be approved, or he’ll sue for unfairness or something.
jgapinoy on January 30, 2009 at 8:53 PM
And anything the Daschle spokesman said about “Daschle had asked his accountant to look into the tax implications of the car and driver five months before Mr. Obama won the presidency,” is ridiculous.
Five months it took his accountant to figure this out? Please.
INC on January 30, 2009 at 8:53 PM
Why settle when we can have both?
zmdavid on January 30, 2009 at 8:53 PM
But I agree with you — Daschle should be forgiven, because he was forthright.
Forgot to add that I don’t agree with me.
Dashole can be forthright all he wants, he is still a tax cheat and he KNEW he was a tax cheat.
I’m sick of these fuds saying “Aw well, you know, this happens”….forget it.
Bishop on January 30, 2009 at 8:54 PM
Or one ad just for Congress:
“Democrat Congress of Corruption”
INC on January 30, 2009 at 8:54 PM
After hearing about the mistake, I wouldn’t call him a tax cheat, just incredibly naive. People who get this far up the food chain, if they don’t know themselves, invariably have people ready to tell them what’s okay or not okay about stuff like this.
Make that incredibly naive bordering on stupid. Just what we want running a cabinet-level department.
manwithblackhat on January 30, 2009 at 8:54 PM
Dashole (sic)
Heh, you must have missed the incredibly sly wit I showcased by my intentional (sic).
I amaze myself sometimes.
Bishop on January 30, 2009 at 8:56 PM
29,000 people and one of the political parties is socialists/communists. Not exactly what I had in mind.
genso on January 30, 2009 at 8:56 PM
I disagree. Daschle doesn’t have a naive bone in his body.
INC on January 30, 2009 at 8:57 PM
These guys want to steal your money and control your life. Do not make the mistake of underestimating their abilities or intelligence.
genso on January 30, 2009 at 8:58 PM
After hearing about the mistake, I wouldn’t call him a tax cheat, just incredibly naive. People who get this far up the food chain, if they don’t know themselves, invariably have people ready to tell them what’s okay or not okay about stuff like this.
Apply that to other crimes and see how you feel about it.
Military officers can lose their commands when crew members screw up, CEO’s are blamed for the failings of their staff, coaches are fired when their teams do poorly.
Dashole needs to take responsibility and be held accountable, blaming someone else is bull.
Bishop on January 30, 2009 at 8:59 PM
Lets just squeeze all the back taxes out of Obama’s cabinet to pay for the “stimulus” bill…
2 down… about $130k+ so far. I say that is a good start. At this clip, Obama only needs to nominate 12,500,000 more cabinet officials
gatorboy on January 30, 2009 at 9:00 PM
Hey Ed! I don’t know how much Michelle is paying you and AP but you two should probably have a little talk with her about changing as much of that compensation as possible to loaner cars, drivers, maid service (you probably don’t need that but I’ll bet that AP does), barber services, loaner furniture (I visualize AP sitting in a New York studio apartment with a computer terminal furnished with an old couch with apple crates for end tables and a folding table in the kitchen). Be creative. Get with the new Obama program for success.
MB4 on January 30, 2009 at 9:00 PM
Hey, on the bright side, The Chosen One keeps nominating people of this caliber, next thing you know, the treasury will be awash in money His nominees will have paid in “back taxes”. Win-win.
GarandFan on January 30, 2009 at 9:00 PM
2010 is looking better all the time
gmoonster on January 30, 2009 at 9:01 PM
And that’s just a few of their better character traits.
MB4 on January 30, 2009 at 9:02 PM
29,000 people and one of the political parties is socialists/communists. Not exactly what I had in mind.
genso on January 30, 2009 at 8:56 PM
You asked about integrity and honesty, not political affiliation.
San Marino has followed the same constitution for 400 years, and they are required to appoint regents (or whatever they’re called) from both parties.
Bishop on January 30, 2009 at 9:04 PM
Naive interpretation: After several years of using a benefit and with no change in his employment status necessitating a mid-year evaluation of his tax status, Daschle suddenly remembers he’s been dodging his taxes.
Realistic interpretation: In response to overtures for a possible cabinet post from the Democrat nominee (whose team has already begun planning for the transition should he win the White House), Daschle begins a vetting process that reveals his fraudulent tax reporting.
Y-not on January 30, 2009 at 9:05 PM
The ‘Old Sandy Burgler’ defense… second time this week we’ve fallen for it.
thomasaur on January 30, 2009 at 9:06 PM
It is the way, but it ain’t new. You should be honored that our oligarchs choose to serve us. They are so selfless.
burt on January 30, 2009 at 9:06 PM
Don’t leave out: A Secretary of State whose husband takes millions of dollars a year from foreign governments and NGOs.
Socratease on January 30, 2009 at 9:09 PM
I’m just glad that most of the media is attacking this head on, assigning their top people to report on it, having round table discussions, theorizing on the possible ramifications for the Ogabe administration.
I love our media; thorough, bipartisan and investigatory.
Bishop on January 30, 2009 at 9:10 PM
Then he has an incompetent tax guy.
Mr. Y-not and I used a tax guy for the first time last year. One of the first things he asked us about were non-cash benefits, including use of a company car.
Oh, and the employer also reminded us that the car would be considered a taxable benefit.
I don’t believe that Daschle didn’t know what he was doing.
Y-not on January 30, 2009 at 9:11 PM
It could probably be shown by facts and figures that there is no native American criminal class, except Congress and Obama cabinet appointees.
- Mark Twain
MB4 on January 30, 2009 at 9:12 PM
Yes, you are right. And you cannot refuse to serve if you are selected to office. And if someone complains about your actions while in office, you go to trial. I like that part, except that they seem to have frequent elections due to this. No thanks. I have many people around me with integrity and honesty. But, also a government that’s trashing this country and its culture on purpose for their own benefit.
genso on January 30, 2009 at 9:12 PM
Lay off the scotch! You are becoming delusional.
sherry on January 30, 2009 at 9:13 PM
Don’t forget Chris Dodd. It’s now been over 6 months since he said he would release his mortgage papers to put the sweetheart deal controversy to rest.
Instapundit had a link to this WSJ article from today in which Dodd was pontificating against Wall Street bonuses. The WSJ points out Dodd’s own ties and deals with Countrywide.
The column closes with this wry observation:
Rare is the politician who could clear his name overnight and chooses not to.
INC on January 30, 2009 at 9:15 PM
Poor John Edwards.
Wiped from DNC memory banks to sanitize the party prior to the election.
Any piece of crap can get in the obama administration. Slime is welcome. Edwards would have been welcome. But not before the election. Poor Edwards’ only problem was the timing.
Harsh.
jeff_from_mpls on January 30, 2009 at 9:16 PM
For some reason, I keep thinking that by the time someone makes it to the Senate, all these things should have been brought to the light of day already. Do we have a Democratic senator who’s actually paid their taxes?
No wonder they think everyone else should be paying more…
taznar on January 30, 2009 at 9:16 PM
Perhaps this should get the Captain Renault prize?
I am shocked, shocked that there is tax evasion going on among top Democrats.
coldwarrior on January 30, 2009 at 9:21 PM
By Obama’s second term there probably will an official department of pork although they probably will have a euphemism for pork in the title. If you work hard you might become the first pork secretary.
burt on January 30, 2009 at 9:21 PM
By Obama’s second term there probably will an official department of pork although they probably will have a euphemism for pork in the title. If you work hard you might become the first pork secretary.
Doubtful, Ogabe would have to make a trip to Tehran, hat in hand and tearfully apologizing for the “pork” terminology.
Bishop on January 30, 2009 at 9:24 PM
Lay off the scotch! You are becoming delusional.
sherry on January 30, 2009 at 9:13 PM
You’re the one named after booze.
If you can’t trust the utterly non-biased NYT, then who can you trust? So there.
Bishop on January 30, 2009 at 9:27 PM
What a stand up guy. My hero.
It’s Change alright……..
JeffinOrlando on January 30, 2009 at 9:34 PM
You know, all of this resurrection of the Clinton team and the 90’s Dem power in Congress makes me think that Clinton was planning this 16 years ago. We probably owe Newt and a Republican Congress and then Bush some thanks for holding them off for 16 years.
genso on January 30, 2009 at 9:38 PM
It’s so hard to get good help nowadays.
He must have forgot to pay the $100,000, or maybe turbotax tricked him.
notagool on January 30, 2009 at 9:42 PM
Got to agree with you. Thus, the casual observer (such as you, or me) would have to ask, what if Daschle, or Geithner, for that matter, were not selected for a Cabinet post? They’d never ever consider fessin’ up and paying their “deferred tax liability,” would they?
Goes to character…character…and I thought that was a vital requisite for selection to the top coterie of National posts.
Guess that (D) after the name stipulates “deferred.”
coldwarrior on January 30, 2009 at 9:43 PM
And the best part???
Daschle will get kicked to the curb over “tax issues” – but a gen-u-ine tax cheat gets put in charge of the whole bleepin’ IRS.
uncivilized on January 30, 2009 at 9:46 PM
major double standard here if the appoint him. Obama is turning out to be exactly as we thought, making washington a friends a family network…no matter if you’re a tax cheat or not.
http://www.therightscoop.com
funsutton on January 30, 2009 at 9:49 PM
He must have forgot to pay the $100,000, or maybe turbotax tricked him.
notagool on January 30, 2009 at 9:42 PM
That’s what I’m doing, refusing to pay any of my business-related taxes and then blaming the mistake on TurboTax.
I’ll call you from prison to tell you how it worked out.
Bishop on January 30, 2009 at 9:50 PM
Perfect except for the use of appointees which does not include Obama but should.
burt on January 30, 2009 at 9:54 PM
My husband just said the one good thing about a Democrat getting elected President is that it makes all the Democrats who want to work with him pay their taxes.
INC on January 30, 2009 at 9:55 PM
corruption is a resume booster for this admin.
rob verdi on January 30, 2009 at 9:58 PM
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