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Wednesday, February 04, 2009
Donald Lambro :: Townhall.com Columnist
Tax Cheats Put White House on the Defensive
by Donald Lambro
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WASHINGTON -- It's safe bet that President Barack Obama will not be getting any awards from H&R Block for his administration's ability to sniff out tax dodgers among his Cabinet nominees.

Three nominees in a row, at last count, have run into trouble for nonpayment of taxes. One wiggled through his nomination, but two others have withdrawn, badly tarnishing the Obama presidency and shaking public confidence in his administration.

It was embarrassing enough that Timothy Geithner, President Obama's nominee for Treasury secretary, failed to pay $34,000 in taxes. This guy, after all, was a Federal Reserve president who will oversee the Internal Revenue Service -- whose job is to go after tax deadbeats.

But worse than that, Geithner had put off paying the IRS until November, shortly before Obama named him to the high-level Cabinet post, two years after the IRS brought the troubling tax problems to his attention in 2006.

When the roll was called in the Senate on his nomination, 34 senators voted against confirmation -- an unusually high vote of no confidence for a Treasury secretary -- including Democratic Sen. Tom Harkin of Iowa.

Before that scandal had barely cooled, former Senate Majority Leader Tom Daschle, nominated to be secretary of the Department of Health and Human Services, revealed that he hadn't paid more than $128,000 in back taxes over three years.

Incredibly, Daschle chose to pay what he owed (more than $140,000 with penalties) just six days before his confirmation hearing. Colleagues were stunned by his lame excuse that he didn't know he owed the taxes.

The Senate Finance Committee, which oversees the IRS and the tax code, questioned Daschle behind closed doors Monday to hear their former colleague's explanations for his transgressions. He emerged from the grilling looking ashen-faced. By Tuesday, he withdrew his nomination, saying the uproar of his tax delinquency would only be "a distraction" that would end up hurting a presidency still in its infancy.

Ignorance of the law is no excuse when the average American worker is hauled before the IRS court to explain nonpayment of taxes. But that was part of Daschle's explanation when he was asked why he did not pay the taxes that were long overdue.

He had made more than $5 million in the past two years, reaping more than $220,000 from the healthcare industry that he would oversee as secretary of HHS, and the use of a chauffeured limo whose services are taxed by the IRS as income -- but on which he had paid no taxes.

That service alone was valued at $255,000 in unreported income, the committee's staff investigation found. Failure to report it can be a crime.

Particularly embarrassing to the Obama White House was the huge sum Daschle raked in from the health industry over which he would have official jurisdiction as HHS secretary. Continued...

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About The Author

Donald Lambro is chief political correspondent for The Washington Times.

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RDS....Rush Derangement Syndrome
It is always fun to see who the left will try to run down each day. Rush Limbaugh or Sarah Palin or both.

The people who worry them the most are who they try to tear down. The influential ones. Comic relief.

First
What has Limbaugh been elected or appointed too?
Do you have proof of cheating or has the existing law been used to his advantage? Believe me if he had been cheating you libs would crawl over broken glass, under barbed wire, butt naked to get him. If Cheny did then he should be punished. We do know Killerfer, Geithner, Daschle, are dishonest, lack integrity, tax cheats. atahey only paid up because they got nominated for some position, and their cheating would get exposed. Let's not forget "I will not appoint any lobbyist" That of course was just some words to say on the campaign trail, I don't have enough integrity to live by it.
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