Culture of corruption: Daschle edition

By Michelle Malkin  •  August 24, 2009 08:31 AM

(Limited edition Culture of Corruption trading card sets are now available! Get your Dirty Dozen pack here thanks to Tennyson Hayes)

I reported last month that failed HHS nominee Tom Daschle “may be out of the spotlight since his Health and Human Services cabinet nomination fiasco. But he is in constant contact with Team Obama.”

Chapter 1 of Culture of Corruption provides a full sketch of Daschle’s tax-cheating, influence-peddling ways — and exposes Barack Obama’s refusal to throw his wheeler-dealer Beltway buddy off the bus. Limousine liberal Daschle’s tax evasions were the least of his problems. Tom Daschle is the personification of all that Obama professed to detest during his campaign of Hope and Change— – a consummate Beltway insider who parlayed his public service (where he earned a $158,000 yearly salary) into a $5.2 million personal fortune as one of Washington’s biggest influence peddlers along with his lobbyist wife.

Let’s not forget: Daschle was aware as early as June 2008 that he might have to pay back taxes for the use of a car and driver provided by a private equity firm, but he failed to inform Obama transition team until weeks after Obama designated him the HHS nominee in mid-December 2008. The donor and personal friend who provided the chauffeured services, Leo Hindery Jr., had also made Daschle chairman of the executive advisory board of InterMedia Advisors, a high-flying investment firm. Daschle raked in a million-dollar salary from the arrangement in addition to his private chariot. Asked why he hadn’t disclosed the cozy arrangement, Daschle “told committee staff he had grown used to having a car and driver as majority leader and did not think to report the perk on his taxes, according to staff members.” It was a perfect expression of the culture of Beltway entitlement.

Daschle was on the cusp of attaining enormous power to reshape the American economy and implement his sweeping universal health care proposals. He wasn’t going to let a pesky tax omission get in the way. On January 2, 2009, he was forced to amend his 2005 and 2007 tax returns to reflect $255,256 for the use of the car service, $83,000 in unreported consulting income, and $14,963 in charitable contributions. In addition, the would-be Health and Human Services Secretary failed to pay $6,000 in Medicare taxes for the driver. On February 1, 2009, Daschle groveled before his former Senate colleagues to explain away the back payments he owed as well as dubious charitable deductions worth an estimated $146,000, including interest and penalties. It was downplayed as a “tax glitch.”

Daschle withdrew on February 2, 2009. Obama stuck with him until the very end. He expressed “sadness and regret” that his HHS nominee got tripped up by his “mistake.” Obama said he “screwed up” and promised not to repeat the mistake again.

Another empty promise.

Over the weekend, the New York Times detailed just how cozy Daschle has been with the White House and the health care industry over the past six months. Daschle has been raking in speech money — billed as the “architect” of Obamacare — and raking in consultant fees for health care clients who stand to benefit from “compromise” proposals Daschle has been lobbying for at the White House and on the Hill:

Six months have passed since the morning when Tom Daschle, the former Senate Democratic leader, under fire for not paying certain taxes, called President Obama in his study off the Oval Office to withdraw his nomination as health secretary and reform czar.

But these days it often seems as if Mr. Daschle never left the picture. With unrivaled ties on both ends of Pennsylvania Avenue, he talks constantly with top White House advisers, many of whom previously worked for him.

He still speaks frequently to the president, who met with him as recently as Friday morning in the Oval Office. And he remains a highly paid policy adviser to hospital, drug, pharmaceutical and other health care industry clients of Alston & Bird, the law and lobbying firm.

Now the White House and Senate Democratic leaders appear to be moving toward a blueprint for overhauling the health system, centered on nonprofit insurance cooperatives, that Mr. Daschle began promoting two months ago as a politically feasible alternative to a more muscular government-run insurance plan.

It is an idea that happens to dovetail with the interests of many Alston & Bird clients, like the insurance giant UnitedHealth and the Tennessee Hospital Association…

When members and allies of Team Obama engage in back-scratching and Beltway business as usual, it’s not lobbying. It’s “helping” and providing a “resource:”

Mr. Daschle is not registered as a lobbyist and recently told U.S. News and World Report that he preferred to describe himself as a “resource” to those in government and industry.

“I’d like to be a resource to my former colleagues, to the extent that I can, to the administration, to the stakeholders and to people interested in just kind of knowing how this is all going to play out,” he said. “I am most comfortable with the word resource.”

White House officials say they appreciate his help. “He is one of a number of people that provides outside advice to the White House, and the president greatly appreciates that advice and Tom’s friendship,” said Dan Pfeiffer, a spokesman for the White House who previously worked for Mr. Daschle. Mr. Pfeiffer added that the former senator was “a recognized expert on health reform who knows more about the legislative process than just about anyone.”

Daschle is just another privileged Corporate Shill for Hope and Change. Bobby Gibbs won’t be questioning his motives anytime soon.

***

One final, grating detail buried in the NYTimes piece: Republican Senate pal Robert Dole, one of Daschle’s colleagues at Alston & Bird, collaborated with him on his latest tweaking of the Obamacare plan — from which Dole and Daschle’s clients stand to benefit.

Like I always say: When government grows, corruption flows. And both Democrat and Republican Beltway creatures are guilty of providing the fertilizer.

***

Health insurers respond to Obamacare negotiations: “It’s a bonanza!”

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Comments


  1. #1
    On August 24th, 2009 at 8:48 am, happyscrapper said:

    I remember the complete euphoria I felt when Daschle was defeated. I thought we were finally rid of that scumbag. Leave it to “team obama” to dredge up the sludge from the swamp. Gag.

  2. #2
    On August 24th, 2009 at 8:49 am, regularguy said:

    Good God, Michelle, did you have to put such a large picture of that crapweasel on your latest CoC edition? I’m still haunted with the visage of Helen Thomas from a previous post. This is just wrong, WRONG. I thought we were largely through with having to look at this jerk, by and large. Please, for the love of God, spare us Daschle’s image if at all possible.

  3. #3
    On August 24th, 2009 at 8:52 am, 30 pcs of silver said:

    A lot of political capital is being used in an effort to pass ObamaCare and unsurprisingly the usual suspects stand to benefit from its passage. It’s neither for the children nor is it to help the uninsured … just lining the pockets of those in the good ol’ boys club. Business as usual. How’s that for change?

  4. #4
    On August 24th, 2009 at 8:54 am, ajmontana said:

    lol happy, they don’t need to dredge up the swamp, skimming the surface is all they need to do.

    Does anyone know when the coverage of all these (secret)nmeetings in the White House will be on C-Span? I mean Odopey said they would be so it must be true. :roll:

  5. #5
    On August 24th, 2009 at 9:15 am, Danceswithdachshunds said:

    One of my FAVORITE political advertisements of all time (probably second only to Dukakis in the tank)…

    And also don’t fail to condsider for who is posting the above video…

  6. #6
    On August 24th, 2009 at 9:24 am, docflash said:

    Follow him and the money and it will end at the cesspool.They can’t wait to get their hands on all the insurance money.

  7. #7
    On August 24th, 2009 at 9:24 am, BuckeyeSam said:

    For starters, I loathe Daschle–I loathe him. But one item, I believe, was unclearly stated.

    In addition, the would-be Health and Human Services Secretary failed to pay $6,000 in Medicare taxes for the driver.

    This sentence suggests that Daschle was responsible for Medicare taxes on compensation earned by the driver along the same lines as employment taxes that many taxpayers have overlooked with regard to household help. That can’t be true.

    Instead, the point, I believe, that you’re trying to make is that because Daschle unbelievably omitted $255,256 of income for the value of the car service he was provided, he failed to pay not only the federal (and state and local) income taxes on that income but also the Medicare taxes on that income. As you may know, compensation is subject to FICA (or SECA taxes) only up to a level of somewhere in the low $100Ks, but compensation is subject to Medicare taxes (1.45% for employees, 2.9% for self-employeds) without any ceiling.

    So be clear. The $6,000 of Medicare taxes relates to income that Daschle unquestionably received in the form of the car service and not to income that any driver or drivers earned during the period of Daschle’s omissions. In the end, I’d have written the sentence as follows:

    In addition, the would-be Health and Human Services Secretary failed to pay $6,000 in Medicare taxes with respect to the $252,256 of car-service income that he should have reported for the years in which he received the use of the car service.

    Daschle is a creepy loser, but in this instance he doesn’t deserve the suggestion that he didn’t pay employment taxes for a driver along the lines of the employment-tax avoidance committed by so many people with respect to household help.

  8. #8
    On August 24th, 2009 at 9:34 am, ArizonaNeanderthal said:

    Our Hero Corporate Shill for Hope and Change the Less Than Honorable Senator Tom Daschle did write in his Health Care Manifesto “Critical: What We Can Do About the Health-Care Crisis that old people should just go away and die. Hero Corporate Shill for Hope and Change the Less Than Honorable Senator Tom Daschle is certainly older than President Obama (62 this year) so to show solidarity with the Obaminations of this administrations I ask the Less Than Honorable Senator Tom Daschle to PLEASE go away and die.

    Another issue-not really related:
    As I do not believe there will be a true stock market recovery anytime soon and the shenanigans at GM and Chrysler have the Bond Market skittish I have found need for new investment opportunities.

    So thanks for the Limited edition Culture of Corruption trading card sets. I will be storing them next to my Limited Edition Commemorative, not available in stores-BUT THAT’S NOT ALL, set of President and First Lady Obama Inauguration Plates-suitable for framing and of course the President and First Lady Obama Inauguration Throw Pillows. Such a deal!

  9. #9
    On August 24th, 2009 at 9:34 am, Dimsdale said:

    So now lobbyists are “resources”.

    I guess we can peel back the terminology on other Obamazoids:

    Czars = enforcers

    Hope and change = same old stuff

    “Not one dime” = lots of dimes (and dollars)

    No lobbyists = extra lobbyists

    Mistake = intentional but caught

    Forgot to pay my taxes = had no intention of paying my taxes

    Fix the economy = break the economy

    “Don’t want government control of health care (or banks, or the auto industry) = yes I do

    Ah, the list is long, but the patience of Americans apparently is not.

    Let’s take back our country from these socialist fools.

  10. #10
    On August 24th, 2009 at 9:36 am, TigerLady said:

    A lot of political capital is being used in an effort to pass ObamaCare and unsurprisingly the usual suspects stand to benefit from its passage. It’s neither for the children nor is it to help the uninsured … just lining the pockets of those in the good ol’ boys club. Business as usual. How’s that for change?

    Excellent post. You summed it up precisely.

  11. #11
    On August 24th, 2009 at 9:54 am, 30 pcs of silver said:

    On August 24th, 2009 at 9:36 am, TigerLady said:
    Excellent post. You summed it up precisely.

    Thank you!

  12. #12
    On August 24th, 2009 at 10:05 am, sonofdy said:

    Sorta off topic. I am reading Atlas Shurged. A little long winded but when compared to todays economic, social, and political enviroment???

    WOW.

    Just WOW. Heres to the looters!!!

  13. #13
    On August 24th, 2009 at 10:07 am, no2pcbs1 said:

    daschle the corrupt tax cheat and over all piece of human waste. septic tank residue is of more use to this world than little daschle could ever be.

  14. #14
    On August 24th, 2009 at 10:08 am, sonofdy said:

    BTW daschle would be considered a looter. As would 90% of Washington DC.

  15. #15
    On August 24th, 2009 at 10:13 am, rainbow said:

    What’s with the rubbing of the nose bit and glassy eyes?

  16. #16
    On August 24th, 2009 at 10:20 am, rainbow said:

    I forgot to mention that Glenn Beck is going to do a segment this week on all of BHO’s czars. . .should be quite interesting. Pray for his/Michelle’s safety!

  17. #17
    On August 24th, 2009 at 10:20 am, 30 pcs of silver said:

    On August 24th, 2009 at 10:05 am, sonofdy said:
    Sorta off topic. I am reading Atlas Shurged. A little long winded but when compared to todays economic, social, and political enviroment???

    WOW.

    Just WOW. Heres to the looters!!!

    A friend is currently reading my copy of the book. Can’t wait to get it back … It’s one for the ages.

  18. #18
    On August 24th, 2009 at 10:24 am, cheapseat said:

    piggies at the biggest trough on the planet. no wonder congresscritters will pay millions to retain their seats which nominally pay $175k per year, it’s the perks from k street which make them millions.

  19. #19
    On August 24th, 2009 at 10:26 am, sonofdy said:

    A friend is currently reading my copy of the book. Can’t wait to get it back … It’s one for the ages.

    Ayn Rand was a prophet.

  20. #20
    On August 24th, 2009 at 10:26 am, dan708 said:

    What’s really sad is that Daschle is a veteran politician who probably feels that he deserves a living at our expense – after all, we had the temerity to disagree with him when he was Senate Democratic Leader. How dare we!

  21. #21
    On August 24th, 2009 at 10:34 am, Flyoverman said:

    Great post on a day where it was announced that every retiree’s Social Security checks are being reduced. No COLA increase for the next two years (first time since 1975) and increased premiums for Meidcare Plan B and the prescription drug benefit.

    But hey, TARP, the Stimulus Plan, Cash for Clunkers and Medicare reductions in Obamacare are the key.

    No need for death panels, just have seniors shiver in the cold with a lack of nutrition and rationed health care and society will not be “punished” with so many old people.

    We must allocate resources to those who can productively serve The State. I hope the arugala’s fresh on Marth’s Vineyard……

  22. #22
    On August 24th, 2009 at 10:50 am, GraniteMan said:

    Daschle “told committee staff he had grown used to having a car and driver as majority leader and did not think to report the perk on his taxes, according to staff members.”

    What arrogance! I’ve sat here for 10 minutes trying to write a remark and I am so damn mad after reading the article there is nothing to be said that express my out rage at our government and the robbery talking place.

  23. #23
    On August 24th, 2009 at 10:56 am, GraniteMan said:

    I thing I do want to say is Thank God for Michelle, the internet for a medium to get another side to issues, talk radio especially Rush, public figures like Sarah and so many others in the trenches every day and taking the slings and arrows of Obama and the MSM. Keep on speakin’ Truth to POWER!

  24. #24
    On August 24th, 2009 at 11:09 am, happyscrapper said:

    On August 24th, 2009 at 10:56 am, GraniteMan said:
    I thing I do want to say is Thank God for Michelle, the internet for a medium to get another side to issues, talk radio especially Rush, public figures like Sarah and so many others in the trenches every day and taking the slings and arrows of Obama and the MSM. Keep on speakin’ Truth to POWER!

    Mega dittos!! And part of our job is to keep praying.

  25. #25
    On August 24th, 2009 at 11:32 am, 24Klady said:

    Sonofdy #19
    I first read Shrugged when I was 16. It shaped many of my beliefs in what I could do, and what I must do to be a self sufficient adult. It’s amazing, but even at that age I didn’t retain the romance novel portions, just the political theory. It influenced me to explore the differences between liberalism and conservatism, and the gray area in between. I’m now on my 3rd reading (brand new copy w/forward from Peikoff) since July 4th.

    You don’t have to agree with Ayn’s thoughts on abortion or religion to get the message. You will refresh your thoughts on self-determination and need to develop skills of reason. She was amazing in her ability to see the future when things are allowed to drift in one direction that is clearly against your personal safety and welfare.

  26. #26
    On August 24th, 2009 at 11:50 am, Teddy Kennedy said:

    Errah, Dashhole is the lowest form of political hack operative fecae. Theses leeches come to Washington and can never leave the swamp once they’ve tasted power. While he and his wife line their pockets at the teat of corporations looking for an in with our current crop of political elite ruling class one can only hope that he has earned a front row seat in hell between Pelosi and Reid or perhaps a nice room with a view for him and with his roommates Jeffery Dalhmer and Adolf Hitler.

  27. #27
    On August 24th, 2009 at 11:50 am, irving said:

    When government grows, corruption flows.

    This is the real reason most politicians (Democrat and Republican both) want government to grow – and the biggest reason ALL Americans should be screaming to shrink it!

  28. #28
    On August 24th, 2009 at 11:52 am, DBNinKY said:

    “…the New York Times detailed just how cozy Daschle has been with the White House and the health care industry over the past six months.”

    First, I’m shocked that the NYT would even mention this (let alone report on it, however softly). Second, imagine if such a relationship had even been hinted at existing between Karl Rove and the H-C industry? Pelosi would have screeched non-stop about “corruption,” and the media would have echoed every bellow!

  29. #29
    On August 24th, 2009 at 11:53 am, happyscrapper said:

    On August 24th, 2009 at 11:32 am, 24Klady said:

    I too was just 16 when I read the book!! That was a looonngg time ago. I am now 66. We went on our family vacation to a resort and I spent the entire week in a beach chair with my head in the book. I read the whole thing that week and was profoundly changed. I have heard about others who read the book in their teens. An impressionable age, to be sure…and the ideas that are planted in those heads are very very important. The young people today are not getting that kind of information…only liberal indoctrination. That is truly frightening!

  30. #30
    On August 24th, 2009 at 11:55 am, happyscrapper said:

    On August 24th, 2009 at 11:50 am, Teddy Kennedy said:

    Keep telling us what you really think, Teddy. I like it!!

  31. #31
    On August 24th, 2009 at 11:57 am, happyscrapper said:

    First, I’m shocked that the NYT would even mention this (let alone report on it, however softly).

    I heard that someone on Air America referred to Obama as a “charming liar”. Are some moonbats actually waking up???

  32. #32
    On August 24th, 2009 at 12:04 pm, ErikTheRed said:

    Wheee! I can’t wait until 2010 when it will once again be the Republican’s turn to grow government uncontrollably.

  33. #33
    On August 24th, 2009 at 12:09 pm, Mainah said:

    I do not like Obama’s plan
    I do not like it, America I am
    I will not take it without a fight
    I will not take it in smaller bites
    I do not like the healthcare scam
    I do not like it, America I am
    I do not like Pelosi and Reid
    I do not like Congressional greed
    I do not wear a swastika band
    I dont like socialism, America I am.
    I would not, could not, at my doc’s
    I could not open pandora’s box
    I will not take it with a pill
    I will not eat the government swill
    I do not tingle up my leg
    I can offer a job to those who beg
    I do not DO NOT want Obama’s plan
    It is just a socialist scam
    I will not, will not cower down
    while my country goes to the clowns
    I do not accept this, Mr Emmanuel
    You and your buddies can go straight to hell.
    We are united, pissed off, and American
    You doubt I’m a patriot? Damn straight I am.

  34. #34
    On August 24th, 2009 at 12:20 pm, thegreatbeast said:

    That’s why you notice that none of these reps or senators who retire due to illness (the public got sick of them) never return home to their district. They (and senior staffers to important people or of important committees) stick around to improve their station in life.

  35. #35
    On August 24th, 2009 at 12:31 pm, ArizonaNeanderthal said:

    If you think Atlas Shrugged would help some young people you know buy them a copy. You never know just who you may reach.
    37 new from $11.59
    41 used from $8.55
    2 collectible from $46.00
    Amazon.com Sales Rank: #122 in Books after more than 50 years? There is a hunger for decency in reading in this country.
    Culture of Corruption
    Amazon.com Sales Rank: #7 in Books
    Liberty and Tyranny: A Conservative Manifesto-Mark Levin
    Amazon.com Sales Rank: #33 in Books
    Know Your Power: A Message to America’s Daughters by Nancy Pelosi
    Amazon.com Sales Rank: #194,178 in Books
    The Merriam-Webster English Dictionary (Paperback)
    Beat ‘ol Nancy by 193,000+ :)

    Amazon.com Sales Rank: #906 in Books

    Pass on your extra copies of Culture of Corruption, Liberal Fascism and such. Don’t let them collect dust. If you have a copy of Botox Nancy’s book your name is George Soros.

  36. #36
    On August 24th, 2009 at 12:47 pm, 24Klady said:

    I just googled ‘Daschle healthcare’ and got 941,000 hits. Daschle’s most searing words included “growing old will not be pain free” and “seniors should be more accepting of the conditions that come with age instead of treating them.”

    The brick wall that both ‘Bambi and Daschle, Rahm, Reid and Pelosi just hit are the boomers…we have, for the most part, refused to allow ourselves to be denied anything that makes us feel good or enhances our quality of life. Right or wrong, good or bad, the spirit still lives in those born into that group. Some may have been sidetracked into socialist dogma, but for the most part – being on the receiving end of the world’s best economy, healthcare, luxuries beyond Caesar’s imagination, and freewill is going to be the downfall of those straggler’s that got caught up in the socialist agenda.

  37. #37
    On August 24th, 2009 at 12:50 pm, rambler said:

    happyscrapper, I feel the same way. Voting these clowns out doesn’t seem to get rid of them. They have to die and then they leave their seat to a family member. No wonder none of them fear us.

  38. #38
    On August 24th, 2009 at 1:08 pm, 24Klady said:

    AzNeanderthal, excellent advice on passing along books that are meaningful to those that have denied themselves the need to explore new thoughts. I’ve got one leftbent friend that’s now listening to Rush! Still refuses to read big books with big words. He still calls Palin the ‘twit from Alaska’ but is clearly seeking a new direction. Plant the seeds folks.

  39. #39
    On August 24th, 2009 at 1:30 pm, Speakup said:

    Smeagol Daschle

  40. #40
    On August 24th, 2009 at 1:30 pm, CantCureStupid said:

    And both Democrat and Republican Beltway creatures are guilty of providing the fertilizer.

    FIFY

    Daschle is one of a long list of corrupt sleazebags who should be enjoying the benefits of a tax-payer funded lifestyle from behind federal prison bars.

  41. #41
    On August 24th, 2009 at 1:40 pm, mom2jack said:

    Michelle, I picked up your book at Costco yesterday and cannot put it down. Excellent work. Your notations are organized and airtight. I really don’t know how anyone can dispute your reporting. Every American should be reading this book and preparing to start to “voting the bums out” next year.

  42. #42
    On August 24th, 2009 at 1:55 pm, bloodhound said:

    YEAH! ~ The Culture of Corruption Corrupicrat Trading Cards are here!

    OK everyone, let’s see who can get the entire set autographed first! Now that would be a collectible set! Whomever gives it a try, be sure to get a home video of the face of the corrupticrat when presented with their very own trading card for their Benedict Arnold…errr John Hancock! wink-wink

  43. #43
    On August 24th, 2009 at 3:32 pm, moonsbreath said:

    The Obama organization has to be the Mother of All Spiderwebs.

  44. #44
    On August 24th, 2009 at 4:01 pm, Savage24 said:

    I received an email the other day that says it all. “Politicians should be limited to two terms, one in office and one in jail” haven’t heard anything better then that.

  45. #45
    On August 24th, 2009 at 4:37 pm, nail49 said:

    Politicians should be limited to two terms, one in office and one in jail

    Savage24: Preferably the second is longer than the first by a factor of 20!

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