Daschle Is “Deeply Embarrassed And Disappointed” By Tax Issues

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.

Kelly Phillips Erb

Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.

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25 thoughts on “Daschle Is “Deeply Embarrassed And Disappointed” By Tax Issues”

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.

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.

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.

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?

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.

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.

“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?

~~Change you can believe in~~ More of the same.

Oops, need to practice html I guess.

Kelly says:

February 2, 2009 at 8:29 pm

I fixed it for you!

Reply

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

Kelly says:

February 2, 2009 at 8:29 pm

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

Reply

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.

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?

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.

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

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.