As reported by ABC News and noted here earlier, President Obama’s nominee for Secretary of Health and Human Services has run into tax issues while trying to get confirmed by the U.S. Senate. Earlier reports were that Tom Daschle failed to report the use of a chauffeur on his income taxes, which is required by law. The Secretary-designate only paid the taxes on the chauffeur while being vetted by the Obama Administration.
But now Jake Tapper reports that Daschle’s tax problems are more extensive than first thought. It would seem that the former senator failed to report consulting income and claimed charitable contributions that simply don’t qualify.
Mr. Daschle also didn’t report $83,333 in consulting income in 2007.
The Senate Finance Committee Report also notes that during the vetting process, President Obama’s Transition Team “identified certain donations that did not qualify as charitable deductions because they were not paid to qualifying organizations. Daschle adjusted his contribution deductions on his amended returns for 2005, 2006 and 2007 to remove these amounts and add additional contributions.” This adjustment meant a reduction in the amount he contributed to charitable foundations of $14,963 from 2005 through 2007…
With the unreported income from the use of a car service in the amounts of $73,031 in 2005, $89,129 in 2006 and $93,096 in 2007; the unreported consulting income of $83,333 in 2007; and the adjusted reductions in charitable contributions, Daschle adds a total of $353,552 in additional income and reduced donations, meaning an additional tax payment of $128,203, in addition to $11,964 in interest.
It wasn’t until January 2nd of this year that Daschle filed amended tax returns and paid the $140,167 he owed to the Internal Revenue Service.
As I noted earlier Senator Max Baucus (D-Montana), the chairman of the Senate Finance Committee, has called a private meeting for his colleagues for 5pm Monday. The implications of this tax problem revalation will be discussed.
Addendum: I want to see how the IRS will punish average Americans for cheating, er, messing up their taxes in the future. Both the Secretary of the Treasury and the Secretary of Health and Human Services will have lied on their taxes, yet were confirmed by the U.S. Senate after only paying what they owed when it could affect their nomination.
How many Americans will get punished for failing to report much less than $353,552 worth of income? Or perhaps employing someone in the country illegally as a housekeeper?


by Stephan Tawney on January 31, 2009