Flying high: Daschle, Panetta on corporate jets

By Michelle Malkin  •  March 4, 2009 09:47 AM

President Obama has made a big show of bashing corporations for their expensive jets and political junkets.

But you won’t see him wagging his finger over the passengers on this one:

Educap is a multibillion-dollar student loan charity run by CEO Catherine Reynolds. As CBS News Investigative Correspondent Sharyl Attkisson reported Monday night, Educap is under investigation by the IRS and Congress for alleged abuse of its tax-exempt status because it charges high interest on charitable student loans, and provides lavish perks with millions in compensation for Reynolds and her husband.

CBS News has obtained exclusive details of what may have been the biggest charity perk: use of Educap’s $31 million luxury jet, which costs thousands of dollars an hour to operate.

Investigators say for five years, Reynolds jetted friends, family and luminaries to faraway and exotic destinations that sometimes had little to do with the charity’s mission.

CBS News has learned that high-profile names on the Educap flight list include CIA Director Leon Panetta, former Sens. Tom Daschle and Ted Stevens, former FBI Director William Sessions and Chicago Mayor Richard Daley.

According to flight records, Panetta and Daschle, while not in public office, accompanied Educap’s Catherine Reynolds on flights to private business meetings not related to the charity…And records show Reynolds took Chicago’s Daley and his wife on 58 flights including ones to Turkey, Asia and Sweden.

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Comments


  1. #1
    On March 4th, 2009 at 9:51 am, jangar said:

    Nothing new here. Exempt when left of center.

  2. #2
    On March 4th, 2009 at 9:52 am, sonofdy said:

    Michelle, michelle, michelle, when will you learn that corruption is OKAY for Democrats??

    silly girl…

    ;-)

  3. #3
    On March 4th, 2009 at 9:52 am, MNUSMCDavid said:

    One wonders when the bag that is holding all this information that you so diligently collect will ever burst to the chagrin of all these slimeballs……. I just wonder( sighs)… My cynical side tells me not to hold my breath. Keep fighting, Michelle.

  4. #4
    On March 4th, 2009 at 9:53 am, tpitman said:

    Michelle, you certainly don’t expect our lords to sit on a commercial flight amongst the “tired, poor, wretched refuse”, now do you?

  5. #5
    On March 4th, 2009 at 9:53 am, BuckeyeSam said:

    Educap is under investigation by the IRS and Congress for alleged abuse of its tax-exempt status because it charges high interest on charitable student loans, and provides lavish perks with millions in compensation for Reynolds and her husband.

    This outfit thought it would avoid scrutiny when Daschle dropped out. I hope the IRS and Congress kills this entity. For years, it enjoyed tax-exempt status while running a for-profit business.

    Someone explain to me why a non-profit needs a corporate jet. Tax-exempt entities are not supposed to provide private inurement to their officers and directors. From what I’ve read, that’s all this entity did.

  6. #6
    On March 4th, 2009 at 9:56 am, sonofdy said:

    Someone explain to me why a non-profit needs a corporate jet.

    How else can our honorable democratic congress critters join the mile high club.

    Those democratic congress critters aren’t going to bribe themselves you know.

  7. #7
    On March 4th, 2009 at 9:59 am, wighttrasch said:

    ‘Bloody peasant!’

    ‘Oh that’s a dead giveaway–did you hear that?’

    ‘Now we see the violence inherent in the system!’

  8. #8
    On March 4th, 2009 at 9:59 am, Paul Revere said:

    Americans don’t care about corporate jets!

    /Schumer

  9. #9
    On March 4th, 2009 at 10:00 am, ArizonaNeanderthal said:

    And these Leftist jerks wonder why we hold them in such contempt-the jerks.

    Keep the change-I’ll keep my guns

  10. #10
    On March 4th, 2009 at 10:02 am, Ed Mahmoud abu al-Kahoul said:

    When the proles are living on communes pulling plows with oxen and horses, assuming our masters will permit us the greenhouse gases of animal flatulence, in the golden era when the kulaks and other class enemies have been reeducated, I imagine our Dear Comrade Leaders will still be entitled to their dachas and fossil fuel powered jets and limousines, because it is such hard work taking care of the needs of the proletariat.

  11. #11
    On March 4th, 2009 at 10:06 am, chapoutier said:

    Someone explain to me why a non-profit needs a corporate jet.

    Don’t they all get one? I thought they came standard with every 1031 application.

    Soap, did you go with the Gulfstream or the Lear?

  12. #12
    On March 4th, 2009 at 10:09 am, happy2behere said:

    Hey, come one, give them a break – there are a lot of bargains for corporate jets right now. Some of those guys are just taking advantage of the market.

    BTW – During the fuel crisis, their jets were more expensive to operate, you know. So now they are saving us money.

  13. #13
    On March 4th, 2009 at 10:10 am, happy2behere said:

    I like the Citation myself.

  14. #14
    On March 4th, 2009 at 10:11 am, MarcoPolo said:

    My biggest problem is that they brought them all back home from Turkey.

  15. #15
    On March 4th, 2009 at 10:12 am, tre said:

    They don’t want to sit on a commercial plane and smell tourists, don’t cha know?

  16. #16
    On March 4th, 2009 at 10:14 am, sims said:

    You don’t think Educap was, you know, lobbying do you? Maybe trying to infuence future decisions? Maybe even trying to avert future legal problems…?
    Interesting that anyone would let themselves get involved with Educap without first asking a few pertinent questions.

  17. #17
    On March 4th, 2009 at 10:16 am, Lars said:

    Gee, I wonder if Daley paid taxes for this little perk?…and did Obama ever ride along?

  18. #18
    On March 4th, 2009 at 10:22 am, DBNinKY said:

    And records show Reynolds took Chicago’s Daley and his wife on 58 flights including ones to Turkey, Asia and Sweden.

    Wow – what a vacation package! I’m sure Chicago’s good mayor correctly included it among his taxable income/donations.

  19. #19
    On March 4th, 2009 at 10:24 am, txvet2 said:

    What’s new? Members of the ruling class can’t be expected to sacrifice like the peasants.

  20. #20
    On March 4th, 2009 at 10:25 am, TXGator said:

    I bet they went to Sweden to shop at a discount IKEA factory outlet so children could have practical desks and chairs for school.
    You cynical jerks think they didn’t do it for the children? Won’t you think of the children?!

  21. #21
    On March 4th, 2009 at 10:25 am, BlameAmericaLast said:

    So that’s how the liberals enjoy life…don’t pay taxes (only when caught), and create non-profit companies so you can profit off them.

    Nice lifestyle!

  22. #22
    On March 4th, 2009 at 10:26 am, DBNinKY said:

    CBS3.com:

    Watchdog Stephen Burd says money spent on the jet comes off the backs of students, who have Educap loans costing up to three times more than government loans.

    What? Democrats enabling their friends who take advantage of the needy – why I’m shocked!

  23. #23
    On March 4th, 2009 at 10:27 am, Truesoldier said:

    I think the other half of the story is that it is always the left who is bemoaning the need for giving more help to students paying back student loans after college. Could this be an insight as to why they are so eager to use our tax dollars to help pay for student loans?

  24. #24
    On March 4th, 2009 at 10:33 am, Craig said:

    He rose from the table; and, advancing to the master, basin and spoon in hand, said:

    “Please, sir, I want some more.”

    “What!” said the master.

    “Please, sir,” replied Oliver, “I want some more.”

    Peasants!

  25. #25
    On March 4th, 2009 at 10:36 am, Ron said:

    Oligarchy: Oligarchy (Greek Ὀλιγαρχία, Oligarkhía) is a form of government where power effectively rests with a small elite segment of society distinguished by royalty, wealth, family, military influence or occult spiritual hegemony.

    To update that definition, add political party elite. The rest of us have laws with which we must comply. But as George Orwell taught us, some pigs are more equal than others, and Democrat pigs are more equal than all others.

  26. #26
    On March 4th, 2009 at 10:37 am, zyzzyg said:

    Although it is consistent to take Educap to task over the plane and who they fly, are they using Federal dollars to do so?

    That aside, the real issue is the apparent oxymoronic nature of their mission.

    ” . . . because it charges high interest on charitable student loans . . . ”

    HUH?

    What makes paying interest on loans charitable? I had always thought ‘charity’ did not have strings attached. I am glad that the Federal Government is investigating Educap for this reason.

  27. #27
    On March 4th, 2009 at 10:38 am, txvet2 said:

    On March 4th, 2009 at 10:36 am, Ron said:

    But they’re still pigs.

  28. #28
    On March 4th, 2009 at 10:46 am, happyscrapper said:

    A 31-Million Dollar jet for a tax-exempt, charitable organization? And no-one said anything until now? Yeah, those kind-hearted folks really care about the poor and needy, don’t they. Just think what 31 million could accomplish for that charity! Let me get this straight…Obama wants to start imposing increasingly impossible taxes on our exhalations, but the carbon footprint left by these corrupt jerks will get yet another pass. It is one thing for private business to have corporate jets. We have no business madating that they don’t. But WE THE PEOPLE pay for the tax-exempt jets either with our charitable giving or our taxes! Class warfare has been going on for a long time, but I suspect it is ramping up at a furious pace. If the politicians and liberals won’t “police” their own, it is up to us to take over the job.

  29. #29
    On March 4th, 2009 at 10:46 am, southsideironworks said:

    Maybe Chicago will finally get lucky and get Daley under the microscope.

  30. #30
    On March 4th, 2009 at 10:48 am, happyscrapper said:

    On March 4th, 2009 at 10:25 am, BlameAmericaLast said:
    So that’s how the liberals enjoy life…don’t pay taxes (only when caught), and create non-profit companies so you can profit off them.

    Nice lifestyle!

    Not so nice when you consider what the payback will be!!!

  31. #31
    On March 4th, 2009 at 10:50 am, happyscrapper said:

    On March 4th, 2009 at 10:37 am, zyzzyg said:
    Although it is consistent to take Educap to task over the plane and who they fly, are they using Federal dollars to do so?

    What do you think?

  32. #32
    On March 4th, 2009 at 11:00 am, gunslingerpatriot said:

    On March 4th, 2009 at 10:25 am, BlameAmericaLast said:
    So that’s how the liberals enjoy life…don’t pay taxes (only when caught), and create non-profit companies so you can profit off them.

    Nice lifestyle!

    Of course this is nothing new, just look at the good reverand jackson and his rainbow coalition.

    Keep the corporate jet, I like my Jetta better! Or an even better idea-try teleconferencing and its even green friendly too!

    GSP
    “Don’t blame me I didn’t vote for the KBPOTUS!”

  33. #33
    On March 4th, 2009 at 11:01 am, irving said:

    For years, it enjoyed tax-exempt status while running a for-profit business.

    There are LOTS of non-profits that make a huge profit. Government funding (usually below the federal level) is common and, since they have no shareholders, the CEOs get to keep much of it or share it with their friends and family.

    The biggest plus for them is that they get to claim the moral high ground while still making bundles of money.

    It’s a nice scam that is milked almost exclusively by the left.

  34. #34
    On March 4th, 2009 at 11:22 am, happy2behere said:

    The scoundrels! One can get a great coporporate jet for much less than 31 million in this market. Of course, the trade-in might not be much.

  35. #35
    On March 4th, 2009 at 11:28 am, BlameAmericaLast said:

    Hey, maybe that’s what I need to do going forward so I won’t have to pay income taxes. Start a non-profit, buy fancy cars, etc., all under the “non-profit” umbrella.

    That’s the ticket!

  36. #36
    On March 4th, 2009 at 11:48 am, California Red said:

    They obviously believe that some are more equal than others. Such do as I say and not as I do behavior is getting old.

  37. #37
    On March 4th, 2009 at 11:49 am, Flyoverman said:

    This whole issue of private jets is such an exercise in pandering and demagoguery. Time is money and the flexability of using private jets has its appropriate place.

    If Obama and company want to call out corporate executives for using private jets when their corporations are not performing, what should we expect our leaders to do since they have maanaged to put the entity they are supposed to manage $10 trillon in debt?

    If we follow Obama’s standards, San Fran Nan and Dingy Harry should have to ride a bike to work each day.

  38. #38
    On March 4th, 2009 at 11:58 am, cheapseat said:

    you can’t really expect the politburo to travel among those smelly ignorant rubes travelling commercial. they are saving the planet from man made global warning by traveling the globe on their private jets, sucking all that ozone out of the air and turning it into co2. oh wait, that ozone was last decades crisis, so now the jets are sucking co2 out of the air and spewing oxygen, yeah that’s the ticket, oxygen.

  39. #39
    On March 4th, 2009 at 11:58 am, happyscrapper said:

    On March 4th, 2009 at 11:49 am, Flyoverman said:If Obama and company want to call out corporate executives for using private jets when their corporations are not performing, what should we expect our leaders to do since they have maanaged to put the entity they are supposed to manage $10 trillon in debt?

    If we follow Obama’s standards, San Fran Nan and Dingy Harry should have to ride a bike to work each day.

    Sounds like there could be an opportunity for another kind of protest. Maybe we could all send them something to do with bike riding, along with a strongly worded letter about their hypocricy. It would have to be outrageous enough to even get the attention of the – gasp – media! If the average citizen had any idea of the audacious hypocracy of the left, they would be stunned! Well, maybe not stunned, since that is their usual state. Maybe just a bit less apathetic.

  40. #40
    On March 4th, 2009 at 12:05 pm, PKAmmoTroop said:

    Not only is graft and corruption perfectly acceptable when committed by the left, but the CO2 they produce is actually good for trees and flowers and little birdies and children and stuff!

  41. #41
    On March 4th, 2009 at 12:34 pm, AlohaGuy said:

    And records show Reynolds took Chicago’s Daley and his wife on 58 flights including ones to Turkey, Asia and Sweden.

    Do you think Michelle Obama went on any of these when she was Daley’s personal assistant? You know, right before she lost the right to practice law in Illinois…

  42. #42
    On March 4th, 2009 at 12:42 pm, chapoutier said:

    You know, right before she lost the right to practice law in Illinois…

    I have lost the right to practice in a state. There is nothing nefarious. I wasn’t living there, I wasn’t practicing there, had no intention of ever doing so, and did not want to pay all the fees. I can always get reinstated if I did.

    This happens all the time. Unless MO had it revoked as a result of some sort of disciplinary proceeding this is such a non-issue.

  43. #43
    On March 4th, 2009 at 12:54 pm, corona said:

    The Educrap story is old.
    The fact that it go traction tells you that Barry O disciples don’t care about the truth.

  44. #44
    On March 4th, 2009 at 1:08 pm, Hannibal said:

    …And records show Reynolds took Chicago’s Daley and his wife on 58 flights including ones to Turkey, Asia and Sweden

    Come on now, you have to give the devil his due, Illinois politics takes unapologetic rape of the system to new heights. The stories out of that cesspool just get better and better.

    On March 4th, 2009 at 12:34 pm, AlohaGuy said:

    Do you think Michelle Obama went on any of these when she was Daley’s personal assistant? You know, right before she lost the right to practice law in Illinois…

    How bad do you have to be to not be allowed to practice law in Illinois? You could drowned kittens in the Buckingham Fountain and not be considered unfit to be a Chicago lawyer.

  45. #45
    On March 4th, 2009 at 1:20 pm, chapoutier said:

    How bad do you have to be to not be allowed to practice law in Illinois? You could drowned kittens in the Buckingham Fountain and not be considered unfit to be a Chicago lawyer.

    Again, it in all likelihood had nothing to do with not being fit, and everything to do with the fact that MO was in a job wher she didn’t need a license to practice and did not feel like having to attend and pay for the 24 hours of continuing legal education required in Illinois, as well as the registration fee (I think $289 a year, along with whatever they make you pay toward the Client Defense Fund, so probalably at least $350 or so a year).

  46. #46
    On March 4th, 2009 at 1:38 pm, Hannibal said:

    Gee, thanks for clearing that up Chap. It must be all that legal speak that confuses those without knowledge. It just seems strange that the wording in the article was:

    A query of the ARDC, the Attorney Registration and Disciplinary Commission of the Supreme Court of the State of Illinois, reveals that Michelle Obama “voluntarily” surrendered her law license under “court order”!

    You are probably correct, save $350 here and $350 there and pretty soon you’re talking real money.

  47. #47
    On March 4th, 2009 at 1:45 pm, chapoutier said:

    A query of the ARDC, the Attorney Registration and Disciplinary Commission of the Supreme Court of the State of Illinois, reveals that Michelle Obama “voluntarily” surrendered her law license under “court order”!

    Yes…that is not at all inconsistent with what I said. The Illinois Supreme Court sets the standards and rules for licensing. That would be the entity to revoke it if you are not meeting CLE requirements and/or not paying your yearly dues.

    And I know the $350 may not seem like much, but it is more than that. Illinois requires 24 hours of CLE credits a year. Not only do you have to attend these, you usually have to pay for them too. That would cost a couple thousand, I’ll bet. If you don’t need your license, why go through the cost and hassle?

    If there was some other reason, there would be records of a disciplinary hearing.

  48. #48
    On March 4th, 2009 at 8:44 pm, rightisright said:

    On March 4th, 2009 at 9:53 am, tpitman said:

    Michelle, you certainly don’t expect our lords to sit on a commercial flight amongst the “tired, poor, wretched refuse, taxers that pay for this thievery”, now do you?

    fixed it

  49. #49
    On March 4th, 2009 at 9:42 pm, AlohaGuy said:

    I have lost the right to practice in a state. There is nothing nefarious.

    I knew it. Which of those Daley flights were you on?

    The $350 is shocking – that’s what she got from the Hospital…no wait, she got like $350,000, and what with the piano lessons and all, how’s a gal going to make ends meet?

    Hasn’t the Illinois bar figured out how to hold those 24 CLE hours in Paris or Rio yet?

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