Daschle Is “Deeply Embarrassed and Disappointed” By Tax Issues

February 2, 2009 · 22 comments

And well he should be.

Tom Daschle, President Barack Obama’s nod for Secretary of the Health and Human Services Department, has offered an apology for not paying more than $120,000 in federal taxes.

Instead, Daschle tried to offer an explanation for the tax errors. Yes, plural.

Daschle claims that the information provided to him from his friend and business associate, Leo Hindery, was not accurate and resulted in the omission of more than $80,000 in income on his tax returns. Come on, cut the guy some slack… How many times have you just forgotten that you had an extra $80,000? It happens.

And the use of a car service for three years? He just didn’t know that was income.

And the charitable contributions? He just didn’t know that they weren’t proper.

Enough!

The amount of hemming and hawing, excuses and other rot (oh yeah, I said rot, I’m officially irritated!) coming out of this hearing is more than distressing. Daschle is said to have earned more than $5 million in two years after being booted out of his Senate seat (much of it in speaking fees for health care industry firms). With all of that money, this is what his accountants and tax advisors come up with? Hundreds of thousands of dollars in unreported income and improper deductions? Not just one mistake, not just two, not even just three. Years and years of unreported income. And we just get a big “I didn’t mean it” out of it?

There has to a line. There has to be a point at which our politicians take some responsibility for their actions – and not simply because they want something.

We expect those that make the laws to not consider themselves above it.

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Obama Admits Mistake In Daschle Nod | taxgirl
February 3, 2009 at 8:32 pm

{ 21 comments… read them below or add one }

1 Colin February 2, 2009 at 2:14 pm

Seems like he must be pretty stupid if he avoided those taxes intentionally. A public figure *must* know his finances are going to be scrutinized.

2 Kelly February 2, 2009 at 2:20 pm

My guess is that he didn’t expect to be back in the public eye. He was out in 2004 – these errors were in 2005, 2006 and 2007, I believe.

3 greymous February 2, 2009 at 2:26 pm

If he intentionally did it he should be charged with tax evasion. If it was an “error” he’s too incompetent to be in any position of power.

Either way, I agree that his name should be removed. We do not need more of the same. Change means change and not more of the same with a few twists.

4 Joseph Dang February 2, 2009 at 2:26 pm

I used to be a financial planner and tax preparer for Fortune 1000 company executives. Very much in the public eye. We were expensive but not that expensive, and our tax training was pretty top notch.

4 years later and I still am shocked at these mistakes. These aren’t some obscure provisions most people miss. These are run of the mill income items any preparer worth their salt would catch.

I find it funny that Geithner wasn’t assessed any penalties, just back taxes and interest. Is it the same here? If I ever represent a client with back taxes owed, can I use a Geithner defense re: penalties?

5 Tim February 2, 2009 at 2:54 pm

I don’t like it, but I can tolerate this for a HHS nominee. But for Obama’s Secretary of the Treasury? THAT is what is intolerable.

6 Patti Spencer February 2, 2009 at 6:01 pm

You are so right. How bad does it have to be before its disqualifying? Not filing at all? These are the same people who will want to raise taxes – and they aren’t paying.

7 Gary C. February 2, 2009 at 7:58 pm

“Pay no attention to the man behind the curtain.” Remember that? Were living it now. Our government is so lax on its participants. Were all mad because we can’t do what they do,and get away with it. There is no possible way Daschle and others like him, can be shown to the American public as trustworthy and able to accomplish the great tasks were’re being lead to believe they are supposed to accomplish.
Find someone,anyone who has a clean past! With folks like this in government I’m still not investing or buying…are you listening US Government?

8 Another Tax Geek, CPA February 2, 2009 at 8:04 pm

Change you can believe in More of the same.

9 Another Tax Geek, CPA February 2, 2009 at 8:05 pm

Oops, need to practice html I guess.

10 Kelvin Kao February 2, 2009 at 8:12 pm

We need to nominate someone that knows tax codes. I nominate Kelly Phillips Erb.

11 Kelly February 2, 2009 at 8:29 pm

I fixed it for you!

12 Kelly February 2, 2009 at 8:29 pm

I will only accept the nomination if I get to wear a tiara to Cabinet meetings.

13 Fred February 3, 2009 at 3:00 am

Wait a minute! This is a man who will have a big part to play in the nation’s health care system. If he is stupid, let him join the ranks. If he is dishonest,let him pay the penalty. Don’t put him in charge of the health care ship.

14 skip February 3, 2009 at 8:33 am

I had a client a few years ago (still my client) who received a nice letter from the IRS concerning not reporting $200,000 worth of income. The husband is a school teacher and the wife is a bank compliance officer. Together they make a fair income. When I asked them about the $200,000 they told me they “forgot” the income when they gave me their records. I filed amended returns (as there were some minor deductions connected with the $200,000) and we went from there. They paid the taxes plus interest AND PENALTIES. Nothing I have read thus far mentions the word PENALTIES for either the cabinet secretary or the cabinet secretary wannabe. Were they assessed penalties?

15 Rick February 3, 2009 at 9:02 am

Actually these have been revenue enhancements, had these two guys not been appointed these taxes would never have been paid. And usually if you find the error and pay the tax with out the IRS finding it first, they will waive penalties, because you complied voluntarly. And if you pay when you didn’t have to, like the treasury sec. there would be no penalty.

16 Rick February 3, 2009 at 9:05 am

And how do I change my icon? My eyelashes are not that long and my lips are not full and red.

17 Carol Fritz February 3, 2009 at 9:27 am

Weighing in on Mr. Daschle again, he’s behaved like an entitled person (which seems to be the self-image of a politician) with disregard for the most basic concepts of taxation.

After leaving employment he’s been cheating his former employer of many years (the public) and now wants us to hire him again.

No business person in their right mind would hire a former employee under these circumstances. The best predictor of future behavior is past behavior.

18 PD February 3, 2009 at 1:07 pm

“If I ever represent a client with back taxes owed, can I use a Geithner defense re: penalties?”

Yes. I have found that the Service is much more agreeable to reducing or eliminating the penalties if you approach them and say, “oops, my bad.” They’re not so agreeable when they catch your error.

19 garagefather February 3, 2009 at 2:16 pm

Did any of Obama’s picks pay their taxes?
This is at least the third Obama nominee that had tax payment issues, and I think it may be up to four. The Sec. of the Treasury got through somehow, the performance Czar nominee just withdrew, and now Daschle is out for not paying taxes. How is it that all these Dems just forgot to pay the taxes THEY always want to lump on the rest of us?
Look at Charlie Rangle. Head of the Ways and Means committee for god’s sake. These people make the laws and then exempt themselves from it.

Last time I checked, that is what we call Elitism.

Just imagine if the media wasn’t in the tank for Obama. Just imagine if they scrutinized Obama’s choices like they did with some past Presidents. These are the controversies that the media couldn’t hide or ignore. Just imagine if the media actually objectively vetted these nominees.
You have to either question the intelligence of Obama’s choices, his vetting process, or possibly consider the fact that very few well healed Dems pay all their taxes.

20 This Name Used February 3, 2009 at 2:22 pm

Oh come now Comrads!

This is the “Change” that the overwhelming number of voting Americans wanted! Welcome to the Peoples Socalist Republic of Amerika where there are more exciting antics yet to come.

Wake up Americans! Join together and take up arms – it’s time to take the country back. In case you forgot, the constitution says we can.

21 Christopher Ganiere February 3, 2009 at 3:22 pm

Lead by Example.

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