What will the Bend Over Republicans do with tax cheat Tom Daschle?

By Michelle Malkin  •  January 31, 2009 05:06 AM

Before we get to tax cheat Tom Daschle, let’s recall the names of the Bend Over Republicans who pooh-poohed Treasury Secretary Tim Geithner’s tax troubles and accused critics of “thinking in small political terms.”

On the Senate Finance Committee, B.O. Republicans Mike Crapo, Orrin Hatch, John Cornyn, Olympia Snowe and John Ensign all determined that Geithner’s “tax goofs” worth $43,000 did not disqualify him from the job of overseeing everyone else’s taxes.

On Jan. 26, when the full Senate voted, 10 B.O. Republicans cast their votes in the affirmative for the serial tax evader and bailout failout architect. Those 10 B.O. Republicans were:

Corker (R-TN)
Cornyn (R-TX)
Crapo (R-ID)
Ensign (R-NV)
Graham (R-SC)
Gregg (R-NH)
Hatch (R-UT)
Shelby (R-AL)
Snowe (R-ME)
Voinovich (R-OH)

What, pray tell, will these apologists for tax evasion do with Tom Daschle? Like Geithner, Daschle pleads ignorance – and only paid back taxes and interest during the vetting process for his Health and Human Services Secretary nomination:

ABC News has learned that the nomination of former Senator Majority Leader Tom Daschle, D-S.D., 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 Daschle by a wealthy Democratic friend — a chauffeur service the former senator used for years without declaring it on his taxes.

It remains an open question as to whether this is a “speed bump,” as a Democratic Senate ally of Daschle put it, or something more damaging.

After being defeated in his 2004 re-election campaign to the Senate, Daschle in 2005 became a consultant and chairman of the executive advisory board at InterMedia Advisors.

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 New York Yankees’ and New Jersey Devils’ cable television channel).

That same year he began his professional relationship with InterMedia, 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.

During the vetting process to become HHS secretary, Daschle corrected the tax violation, voluntarily paying $101,943 in back taxes plus interest, working with his accountant to amend his tax returns for 2005 through 2007.

That’s just the tip of the iceberg. Late Friday night, ABC News obtained the Senate Finance Committee report on Daschle, which revealed even more unreported income:

Mr. Daschle also didn’t report $83,333 in consulting income in 2007.

The Senate Finance Committee Report also notes that during the vetting process, President Obama’s Transition Team “identified certain donations that did not qualify as charitable deductions because they were not paid to qualifying organizations. Daschle adjusted his contribution deductions on his amended returns for 2005, 2006 and 2007 to remove these amounts and add additional contributions.” This adjustment meant a reduction in the amount he contributed to charitable foundations of $14,963 from 2005 through 2007.

With the unreported income from the use of a car service in the amounts of $73,031 in 2005, $89,129 in 2006 and $93,096 in 2007; the unreported consulting income of $83,333 in 2007; and the adjusted reductions in charitable contributions, Daschle adds a total of $353,552 in additional income and reduced donations, meaning an additional tax payment of $128,203, in addition to $11,964 in interest.

And then there’s the issue of his travel with an education-loan provider — reported by the WSJ last week:

In part, some Finance Committee staff members are looking at Mr. Daschle’s interaction with EduCap Inc., a nonprofit lender that has faced Internal Revenue Service scrutiny for its lending practices and faces a separate Finance Committee probe into what some on the committee believe to be abuses of its status as a charity. Attempts to get comment from EduCap were unsuccessful.

According to Finance Committee aides, EduCap flew Mr. Daschle on its corporate jet several times, including flights to vacation spots. News of such flights first emerged in 2007, after Mr. Daschle had left the Senate.

The Finance Committee staff is trying to determine whether those flights had a legitimate charitable purpose and whether Mr. Daschle’s presence on board could be justified as a charity project. In that sense, the inquiry may have more to do with EduCap’s tax status than Mr. Daschle’s.

Daschle aides have acknowledged he was on some flights but said there was nothing improper about the trips.

Finance Committee aides are also looking at past tax returns, whose complexity has slowed the vetting process. Mr. Daschle and his wife have numerous business interests. Other people familiar with the nomination say one avenue of inquiry is how he characterized charitable deductions on his income tax returns.

But Daschle’s “naive” mistakes make him more qualified to hold a Cabinet position, remember? That’s the reasoning embraced by the Lindsay Graham wing of the Republican Party. Now, the B.O. Republicans will have to 1) twist themselves in pretzels to find a logical explanation for opposing this new tax cheat with liabilities three times Geithner’s; or 2) assume the downward dog yoga position, approve yet another corrupted Obama nominee, and meekly dub him indispensible and “uniquely qualified” to raise the taxes of other Americans after failing to pay his own.

Screw up, move up. It’s the bipartisan Washington way.

***

John Hinderaker finds a silver lining: “Thee good thing about electing a Democrat as President is that, as he nominates fellow Democrats to senior positions in the Executive Branch, millions of dollars in unpaid tax liabilities come to light and are belatedly paid to the IRS, with interest. It is, perhaps, the most tangible advantage of electing Democrats to office.”

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Comments


  1. #201
    On February 1st, 2009 at 11:37 pm, Bill Grant said:
  2. #202
    On February 2nd, 2009 at 1:28 am, California Red said:

    Maybe Tom deserves a pass. Taxes and finance is tough stuff. As long as he knows his health and human services stuff we should forgive the ‘mistakes’ on is tax returns. Now if he were up for the position of being in charge of the IRS and our Treasury, the that would just not do.

    But come on, it not like he is some boy genius financial wunderkind (that sat on the NY Fed as Wall Street melted down).

  3. #203
    On February 2nd, 2009 at 2:56 am, conservative in europe said:

    Joy said:

    BTW, Conservative in Europe, a Troll wouldn’t be the person who agrees and defends the Hostess with the Mostess, MM, but the ones who stab at her continually and blame her for helping McCain lose, like you and Mr. Grant.

    Sorry Joy, but you slip on another point (one of thousands, it seems). The only person I blame for McCain’s loss is McCain. If he were a Conservative, he would have won. Period. That point is, apparently, agreed upon by the majority here.

    What I said was that you would gain a lot more respect if you simply held a reasonable conversation instead of telling people to “Shut up”. Makes you look like a Democrat. I don’t know you, but if someone called me such a low and vile name, I would be extremely offended. So, the word “troll” comes to mind.

    I’m done feeding you now.

  4. #204
    On February 2nd, 2009 at 7:54 am, graysonret said:

    29 years ago, we had ABSCAM. I wonder how the sting would go today, with all the corruption around.

  5. #205
    On February 2nd, 2009 at 7:57 am, PatriotRider said:

    Yea, give the guy a break. He’s embarassed. So all’s forgiven. Right?

    *sacasm off*

  6. #206
    On February 2nd, 2009 at 8:53 am, dan708 said:

    Since Daschle’s inept leadership made it possible for the Republicans to re-take control of the Senate for a few years, the BO Repubs will thank him by rubber-stamping his nomination.

  7. #207
    On February 2nd, 2009 at 11:48 am, JHSII said:

    “conservative in europe” appears to be a clear example of someone who comes into a conversation in the middle of the discussion and then chooses sides based on missing everything that came before he showed up.

    Joy was/is right. You don’t like that, then go back to the parts of the conversation you missed and start all over again.

  8. #208
    On February 2nd, 2009 at 12:41 pm, Bill Grant said:

    On February 2nd, 2009 at 11:48 am, JHSII said:

    “Joy was/is right.”

    Someone else who ran out of fingers to count on… try freeing up your other hand.

  9. #209
    On February 2nd, 2009 at 12:45 pm, JHSII said:

    Another cheap shot from Bill. He has to do this when he has nothing of substance to contribute to the conversation.

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