Special treatment
Apparently it is fine not to pay one's taxes. That seems to be the message from the Obama administration.
First it was disclosed that Treasury Secretary Timothy Geithner failed to pay more than $34,000 in self-employment taxes. That held up his nomination for the post briefly, but did not derail it; he was confirmed by a vote of 60-34.
Now it is apparent that former Sen. Tom Daschle, President Barack Obama's nominee for Health and Human Services secretary, has been negligent as well. The former South Dakota senator recently filed amended tax returns to report $128,203 in back taxes and $11,964 in interest, the Associated Press reported.
"Sen. Daschle made a mistake which he deeply regrets," spokeswoman Jenny Backus said. "He filed amended returns and paid all taxes and interest before he sent his paperwork to the Senate Finance Committee. He's answered all their questions promptly."
Mr. Daschle, former Senate Democratic leader, filed amended tax returns for 2005-2007 to show additional income for consulting, the use of a car service and reduced deductions for charitable donations. He filed the returns after finding out the president sought to name him to lead Health and Human Services.
The lion's share of the unreported income was from the use of a car service provided by a business associate, which amounted to more than $250,000 over three years. An independent consultant to InterMedia Advisors LLP of New York City, Mr. Daschle has a business relationship with InterMedia Partners of Englewood, Colo., which allowed him use of the car service.
This negligence should be taken seriously. But it is not expected to halt his nomination. After all, Mr. Geithner was approved.
Others have allowed a sense of entitlement to obscure conscience and judgment. Rep. Charles B. Rangel, D-N.Y., occupied three rent-stabilized apartments in Harlem at below-market rents, failed to pay taxes on $75,000 in rental income from a beach house in the Dominican Republic and has had to pay more than $10,000 owed in back taxes. Yet he still chairs the House Ways and Means Committee.
Then there is Sen. Chris Dodd, D-Conn., who received preferential rates and reduced fees in a mortgage refinance of two properties with Countrywide Financial in 2003. He has failed to make public the mortgage documents related to this deal, as the Wall Street Journal has pointed out. But that has not stopped him from pontificating against Wall Street bonuses and other perceived financial misdeeds.
President Obama could draw the line on this type of behavior by withdrawing Mr. Daschle's name from consideration. Ordinary citizens are expected to follow the rules without VIP treatment. Why not political leaders?
