Surely President Obama can find qualified people to serve in his cabinet who aren't hustling to write overdue checks to the IRS.
The latest is Tom Daschle, Obama's nominee to become secretary of health and human services. The former Senate Democratic leader from South Dakota said yesterday that he was "deeply embarrassed" about owing the Treasury $140,000 in back taxes and interest.
Before the ink was dry on that statement, however, Daschle's handlers discovered that he owed an additional $6,000 in Medicare taxes.
Daschle racked up these tax bills from 2005 to 2007 for the free use of a luxury car and driver in Washington, provided by his employer, who is a personal friend. At the time, Daschle was earning $1 million per year as a consultant offering policy advice to the health-care industry. (Guess that explains how the former public employee could write such a big check on such short notice.)
The IRS considers the free car and driver as taxable compensation; Daschle apparently didn't know that until last summer. His accountant totaled up the error after Daschle was nominated to serve in Obama's cabinet; Daschle paid the overdue taxes last month.
The Senate, a most exclusive club, seems inclined not to hold this mistake against a former member. Daschle is definitely qualified for the post and, say his supporters, a man of integrity.
But Daschle's error is too serious to ignore; it should disqualify him from serving in the cabinet. If not, just how large a
careless
tax liability is the Senate willing to overlook in a nominee for high office? A quarter-million dollars? A half-million?
In Philadelphia, if a local political candidate owes back property taxes, even unintentionally, it's often enough to sink the campaign. Tax shirkers who campaign for government jobs are considered a lower life form. Shouldn't a top presidential adviser be held to a higher standard? Confirming Daschle would set a bad example for people who routinely pay all the taxes they owe on time.
It wasn't the only tax issue that surfaced for Daschle. During his vetting, the Obama team flagged charitable contributions that he had deducted in error. That's when his accountant decided to go back and re-examine the car service.
Daschle isn't the first Obama nominee with tax problems. Treasury Secretary Timothy Geithner admitted that he hadn't paid $43,000 for work overseas. The Senate confirmed Geithner anyway, anxious for him to get to work fighting the recession (and overseeing the IRS).
People who work in high finance and in the top echelons of government should have a better understanding than Joe Sixpack about their tax liabilities. They can also afford top-quality tax advice, if they really want to hear it.
Obama said his administration would set a new standard for ethics. But now his cabinet stands to gain another tax-challenged secretary. No matter how hard Daschle tries to clean up his mess, if he is confirmed, the stain will remain.