by Deb Cupples | We are at the beginning of tax season -- what better time to discuss tax problems? When I think of taxes, I think of America's richest 400 people, who (on average) saw their incomes double while their effective tax rate went down by one-third during President Bush's first six years in office.
Then we have the problem of executive branch nominees who failed to timely pay taxes. For example, the U.S. Senate confirmed Timothy Geithner as Treasury Secretary, despite his failure to timely pay $30,000+ in social security and medicare taxes even after being informed that he was responsible for paying them.
Yesterday, then-Health Secretary nominee Tom Daschle withdrew his name from consideration after headlines exposed his failure to timely pay more than $100,000 in taxes.
Yesterday, another nominee withdrew from consideration for an Obama Administration post: Nancy Killefer, nominee for Chief Performance Officer. Below is the text of the admirably concise letter that Ms. Killefer sent to President Obama :
"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.
Apparently, Ms. Killefer had failed to pay about $1,000 in employment taxes for household servants back in 2005 -- though, she did resolve the matter that same year.
It seems that one of three things likely happened here:
1) President Obama's team did not diligently vet potential nominees
3) Senate staffers have become more diligent than ever before in doing background research on executive-branch nominees.
I honestly don't claim to know which of those three is most likely.
President Obama said this to MSNBC yesterday:
"'I appointed these folks. I think they are outstanding people. I think Tom Daschle, as an example, could have led this health care effort, a difficult effort, better than just about anybody. But as he acknowledged, it was a mistake. I don’t think it was intentional on his part, but it was a serious mistake. He owned up to it and ultimately made a decision that we couldn’t afford the distraction.'
"Obama added, 'I’ve got to own up to my mistake. Ultimately, it’s important for this administration to send a message that there aren’t two sets of rules, one for prominent people and one for ordinary folks who have to pay their taxes.'”
I agree: the Adminsitration should send a message that there aren't two sets of rules, but timing is important in such matters. Below is an example of bad timing, involving Mr. Daschle:
* In December 2008, President-elect Obama nominated Daschle.
* In January 2009, Mr. Daschle got around to actually paying the taxes.
Assuming that the failure to claim income was an innocent mistake, the timing problem might have been on Mr. Daschle's part -- i.e., he might not have informed President Obama of the goof until after Mr. Daschle was nominated.
Then again, maybe the timing problem was on President Obama's part -- i.e., he might have been timely informed of Mr. Daschle's tax woes but delayed kicking Mr. Daschle to the curb.
Memeroandum has commentary.
Other Buck Naked Politics Posts:
* Erick Holder: First African American Attorney General
* Obama's Policy on Extraordinary Rendition...
* Bailout: Dowd Wants Disgorgement, Which Would be a Good Start
* Richest Got Richer -- and Faced Lower Tax Rates
How about this possibility: the Bushies left someone in the IRS who is going through nominees tax filings looking for something to leak?
Personally, I wish Obama would direct the IRS to audit the entire Congress (and the Executive, just to make it fair). I bet Republicans would be less likely to attack nominees for their tax foibles if they had to explain their own to the public.
Posted by: Charles | February 06, 2009 at 01:01 AM
Personally, I wish Obama would direct the IRS to publically audit the entire Congress and the Executive, too. Years ago, when they were still the consummate Arkansas belly-scratchin' hicks, Hillary and Bubba Bill, Governor of Arkansas, deducted $2 for each pair of used underwear they gave to the Salvation Army. Can't wait to see what their tax returns would say today.
Posted by: Flowerplough | February 07, 2009 at 02:55 AM