Daschle withdraws nomination

[DaveO]

http://news.yahoo.com/s/ap/20090203/ap_on_go_pr_wh/daschle_taxes

[thomtax]

Sen. Durbin, in bemoaning the withdrawal, talks about the loss because Daschle knew his way around the senate.

That's like wanting to appoint a mafia chief to head the IRS because he knows so much about collecting money.

How many cheats and criminals do these guys want?

LT

[JohnH]

After Nancy Killerfer withdrew over a measly $950 underpayment of unemployment tax (including penalties, & interest of $650) on a household employee, it looks like Daschle has no choice but to bow to the pressure and do what he should have done weeks ago.

Or as Mark Steyn said today, "Old Tom flounced out so fast his driver was still in the men's room!"

[erchess]

So Why

did the treasury secretary sail through? Is a puzzlement if I may coin a phrase.

[veritas]

How many

tax cheats can one administration have? I think they reached their limit.

[JohnH]

did the treasury secretary sail through? Is a puzzlement if I may coin a phrase.

Try this for an explanation. Geithner was the first out of the box, so the Obama administration gets a mulligan. If the order had been reversed, it may have been Daschle who made it and Geithner who got the boot. (Killefer, the only one who actually has a believable explanation, is collateral damage in this high-stakes game)

Another possibility may be the nature of the offense. Geithner's situation was a little bit esoteric and most people really didn't understand what happened. Even some accountants have suggested on other forums that the rules are complicated when people work for international agencies, and they would have been tempted to give him a pass if he hadn't specifically requested reimbursements for the S/E tax.

But with Dashle it's different. Anyone who ever used an auto in business or drove a company car has to listen to us tell them they have to keep a log to account for those commuting miles and trips to the grocery store in order to separate the business from personal usage. Now they find out that this out-of-touch elitist not only gets a company car, but he also gets the driver with it and yet he thinks he's too important to bother with paying tax on any of it. Add to that the fact that he apparently fudged on his contributions and it gets really personal for the average taxpayer. (In his defense, his contributions numbers were impressive, but that still doesn't excuse $15K in overstatements, expecially when we tell clients they can't deduct an estimate for the cash they drop in the offering plate over & above their regular documented giving).

For me, it is very telling that Daschle didn't have enough integrity to even recognize there was a problem until the administration threw Nancy Killefer under the bus over a measly $950. I consider him to be the political reincarnation of Leona Helmsley, except that Leona was honest enough to brag publicly that "Only little people pay taxes".

[BOB W]

Dashle has been a thorne in the Democrates side (even thought they didn't know it) but his voters knew it and they voted him out in 2006. This issue is what is called "Sweet Revenge". Couldn't happen to a better guy.

[joanmcq]

I thought Nancy withdrew herself. I'm starting to think everyone over a certain income level has nanny tax issues, and none of 'em if you look closely enough is going to be clean. Good thing Obama has grandma to look after his kids!

Geithner galls me just because he just seemed to be one of those people that are so smart they think they know everything, including taxes, although for the years he was originally busted for, apparently he did go to a pro. Also, since as treasury secretary he is over the IRS, he shouldn't have had to be forced to 'fess up.

Daschele just seems arrogant. Same with Palin. Rangle just clueless, although his mistake was about as material as Killerfer's.

[JohnH]

Well, technically Daschle withdrew himself as well. But I doubt either of them came to that conclusion all on their own. We'll never know who gave them the nudge, but it's unlikely that either of them suddenly had a conscience attack. The Obama team probably decided they could manhandle her in order to achieve their end game, but felt they had to tread lightly with Daschle because he's so powerful.

In fact, I'd be willing to bet Nancy would have had no trouble over her situation, which appears to have been explainable. Had the Obama people not needed a sacrificial lamb to try and coax Daschle into doing the right thing, her problem would have probably gone away with a minimum of fanfare. If I understand things correctly, her only issue was $268 in local unemployment tax, which makes me think she probably handled the Domestic Employee reporting at the Federal level correctly but overlooked or ignored the small stuff. Unemployment tax is something Domestic employers will argue with you about - even more so if they ask enough questions to actually understand what it is.

I'm not sure I'd put Rangle's mistake on a par with Killifer's. Given who he is and his committee assignments, I'd put him right up there with Daschle - maybe more so. By the time they finish with him, he might be coming close to Daschle in total amount owed as well. (That is, unless the remaining issues get swept under the rug)

[veritas]

Arrogance

“Make no mistake, tax cheaters cheat us all, and the IRS should enforce our laws to the letter. ” Sen. Tom Daschle, Congressional Record, May 7, 1998, p. S4507.

[thomtax]

While I understand that much of the news on tv is incorrect, one of the cable news networks was reporting last night that there is a tax lien on Killifer's house. Doesn't sound right, but has anyone else heard this?

LT

[JohnH]

Yes, DC filed a tax lien for the $268 in unpaid Unemployment Tax, plus P&I for a total of $950.

[BHoffman]

Tom Daschle will have to console himself with huge consulting fees and other goodies from the private sector. I don't think he's crying over this.

[joanmcq]

The reason I consider Rangle's omission to be neglible is that I heard the total tax, P&I for the 15 years he had the vacation condo was about 5k. which over 15 years ain't much.

but I agree, local UI tax is easy to miss on household 'ees. I do think she withdrew herself; not being used to being in government, the glare of the spotlight could turn one's opinion rather quickly. the lien and omission wouldn't have gotten a peep out of the press if she was in a private position.