"I don't know anyone more honorable, more decent, more honest and more qualified for this position." -- Sen. Kent Conrad (D-ND), yesterday, on his fellow Democrat, Tom Daschle, whose nomination to be secretary of health and human services is in jeopardy over his failure to pay his share of taxes.
"Raymond Shaw is the kindest, warmest, bravest, most wonderful human being I've ever known in my life." -- A brainwashed Maj. Bennett Marco (as played by Frank Sinatra), on Lawrence Harvey, The Manchurian Candidate, 1962.
Barack Obama may indeed be the greatest president in history, but is this the position his administration should be in after two weeks? Granted, his lofty rhetoric about a "new era of responsibility" is the kind of stuff you always hear from a new president; witness Bill Clinton's promise of the "most ethical administration in history." And perhaps much of what we heard during the campaign and at the inauguration was a bit unrealistic. But there is something troubling about the disclosures of past tax lapses first by Timothy Geithner, who has been confirmed as Treasury secretary, and now by Daschle, who failed to pay taxes on $255,000 of income over the use of a luxury car and driver from 2005-07.
Yes, Daschle is contrite. Yes, he apologized over and over yesterday in a closed-door meeting with members of the Senate Finance Committee, which will hold hearings on his nomination. His failure was "completely inadvertent," he said, "but that's no excuse." No, it's not. And it's a helluva message to send out.
Or, as Vi Rajnes of Binghamton, N.Y., wrote,
Is anyone in Washington honest? Does Tom Daschle really think we really believe he just overlooked the car and driver? A man who has been in the Senate for so many years? And that goes for that other guy who didn't pay his taxes either, Geithner. Do they really think they are above it all?
And it's not just the tax issue. Since being defeated in his bid for a fourth Senate term in 2004, the South Dakota Democrat had made nearly $5 million from a law firm and consulting fees from a private equity firm. He has also received hundreds of thousands of dollars for consulting for and speeches given to health care and pharmaceutical companies -- the same groups he would oversee as HHS secretary.
Can anyone say potential "conflict of interest?" Democrats can't seem to.
Part of the problem -- or, more fairly put, one of the reasons why his confirmation is still seen as likely -- is that he is a member of the club. He was certainly a top GOP target when he served as Senate majority and minority leader, and his defeat (by John Thune) was heralded by Republicans everywhere. But he is very popular with his former colleagues -- certainly among Democrats, and certainly within the Obama administration, where many former Daschle aides now reside.
Robert Gibbs, the White House press secretary, was asked about whether the administration knew about Daschle. "In terms of the vetting," he said, "we're comfortable with the process."
That's even more troubling.
Meanwhile, the New York Times, in an editorial today, urged Daschle to "step aside and let the president choose a less-blemished successor":
Mr. Daschle's tax shortfall is particularly troubling because it comes on the heels of another nominee's failure to pay taxes due. We were not pleased when the president's Treasury secretary, Timothy Geithner, admitted that he had failed to pay tens of thousands of dollars in federal self-employment taxes while working for the International Monetary Fund despite having signed paperwork acknowledging the obligation.
Now we are confronted with an even larger lapse by Mr. Daschle, who failed to pay $128,000 in taxes, primarily for personal use of a car and driver provided to him by a private equity firm for which he consulted. Although the firm -- headed by a major Democratic donor -- had not issued a Form 1099 for the value of the car service, Mr. Daschle said he became concerned last June that he might owe taxes on it and instructed his accountant to investigate. Neither was concerned enough to actually pay the taxes.
Only after the Obama transition team flagged unrelated tax issues that would require filing amended returns did Mr. Daschle and his accountant address the need to report the personal-use value of the car service -- more than $255,000 over three years -- as income. Only after he had been chosen to be the health secretary did Mr. Daschle tell the transition team about the unpaid taxes. He paid some $140,000 in back taxes and interest on Jan. 2 to settle several tax problems -- and he acknowledges owing more.
In both the Geithner and Daschle cases, the failure to pay taxes is attributed to unintentional oversights. But Mr. Daschle is one oversight case too many. The American tax system depends heavily on voluntary compliance. It would send a terrible message to the public if we ignore the failure of yet another high-level nominee to comply with the tax laws.
A Reuters recap of editorials lists other newspapers calling for Daschle to step aside.
Indianapolis Star: "No need to fumble for words that sum up the stew of hypocrisy, arrogance and insiderism that is the unfolding saga of Tom Daschle. This is the audacity of audacity. ... Daschle isn't indispensable. But he is indefensible."
Philadelphia Inquirer: "Surely President Obama can find qualified people to serve in his Cabinet who aren't hustling to write overdue checks to the IRS. ... Daschle's error is too serious to ignore; it should disqualify him from serving in the Cabinet."
San Francisco Chronicle: "Does anyone important in Washington pay taxes? Or is that civic duty -- like jury duty or serving in the military -- now something that only the 'little people' in America, those without deep pockets and connections, do? ... Tom Daschle is the latest Obama appointee to make the American middle class feel like suckers. ... Daschle, for all of his experience and knowledge of health care, has disqualified himself from this important position because of his own personal greed. The Senate should reject his nomination."
Chicago Tribune: "So why is Obama determined to stick with Daschle despite his embarrassing record of non-compliance with the tax laws? ... Contrary to what the president seems to think, the administration can succeed without his services. Obama might keep in mind the wisdom of Charles de Gaulle, who noted that the graveyards are full of indispensable men."
Elsewhere, the White House has just confirmed that Nancy Killefer has withdrawn her name to be the first chief performance officer for the federal government. The AP's Michael Sniffen notes that "in 2005 the District of Columbia government had filed a more than $900 tax lien on her home for failure to pay unemployment compensation tax on household help."
In her letter to Obama, Killefer wrote, "I recognize that your agenda and the duties facing your Chief Performance Officer are urgent. I have also come to realize in the current environment that my personal tax issue of D.C. Unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid. Because of this I must reluctantly ask you to withdraw my name from consideration."
And that prompted this note from NPR's Michel Martin, host of Tell Me More:
Now, somebody please explain to me why two Men fail to pay tens of thousands of dollars in taxes and they're STILL IN ... but a Woman doesn't pay $900 and she's OUT?
You should also check out Michel's latest online column (on the Tim Geithner situation), "You Say Forgiveness; I Say Sexism."