Washington Babylon — January 31, 2009, 9:42 am

One Administration, Two Tax Cheats

First Timothy Geithner and his lame excuses, now this:

Thomas A. Daschle, nominated to be secretary of the Department of Health and Human Services, did not pay more than $128,000 in taxes over three years, a revelation that poses a potential obstacle to his Senate confirmation.

The back taxes, along with $12,000 in interest and penalties, involved unreported consulting fees, questionable charitable contributions, and a car and driver provided by a private equity firm run by entrepreneur and longtime Democratic Party donor Leo J. Hindery Jr., according to a confidential draft report prepared by Senate Finance Committee staff.

A spokeswoman for Daschle confirmed last night that he recently paid back taxes in excess of $100,000. She said that Daschle, a former Senate majority leader, and his accountant discovered the error regarding the luxury car service and reported it to the committee after his vetting was completed.

Daschle paid the back taxes six days before his first Senate confirmation hearing with the Senate Health, Education, Labor and Pensions Committee.

Average family income in the United States is about $50,000, so Daschle forgot to pay in taxes what the average family lives on for about two-and-a-half years. Daschle was always a classic Washington hack, as the source of his recent income illustrates:

The central issue for Daschle hinges on what has been an obscure — but financially rewarding — aspect of his post-Senate life: his role as chairman of the advisory board of Hindery’s InterMedia Advisors.

Daschle and two other former senators — Bob Kerrey (D-Neb.) and Slade Gorton (R-Wash.) — headed the board and were rewarded handsomely for the investments InterMedia made in small niche media corporations.

Founded as InterMedia Partners, the New York-based firm was recast in March 2005 when Daschle was brought in as an investor and head of the advisory board. That group consists of other major Democratic figures, including Cappy R. McGarr, who runs a Dallas investment firm and served as Daschle’s political treasurer, and Bernard L. Schwartz, a former chief executive of Loral Corp. and a major Democratic donor.

Share
Single Page

More from Ken Silverstein:

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Postcard October 16, 2013, 8:00 am

The Most Cajun Place on Earth

A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits 

Get access to 164 years of
Harper’s for only $39.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

February 2015

The Great Republican Land Heist

= Subscribers only.
Sign in here.
Subscribe here.

Captive Market

= Subscribers only.
Sign in here.
Subscribe here.

The Day of the Sea

= Subscribers only.
Sign in here.
Subscribe here.

The War of the World

= Subscribers only.
Sign in here.
Subscribe here.

The Sharp Edge of Life

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
The Great Republican Land Heist·

= Subscribers only.
Sign in here.
Subscribe here.

“The wholesale transfer of public lands to state control may never be achieved. But the goal might be more subtle: to attack the value of public lands.”
Photograph by Chad Ress
Article
The Sharp Edge of Life·

= Subscribers only.
Sign in here.
Subscribe here.

“The struggle of the novelist has been to establish a measure, a view of human nature, and usually, though not always, as large a view as belief and imagination can wring from observable facts.”
Photo by Eddie Adams/Associated Press
Article
Captive Market·

= Subscribers only.
Sign in here.
Subscribe here.

"Fear of random violence lives on, but the reality is that violent-crime rates have dropped to levels not seen since the early Seventies."
Photograph by Richard Ross
Article
The Day of the Sea·

= Subscribers only.
Sign in here.
Subscribe here.

“Fifteen judges will then sit together in a wood-paneled room, in a city thousands of miles from the Andes, and decide whether the ocean Bolivia claims as its right will at last be returned to it.”
Photo by Fabio Cuttica/Contrasto/Redux
Post
Introducing the February Issue·

= Subscribers only.
Sign in here.
Subscribe here.

The Ruin of the West
Christopher Ketcham investigates Cliven Bundy’s years-long battle with the BLM, Annie Murphy reflects on Bolivia’s lost coast, and more
Painting by Richard Prince, whose work was on view in October at Gagosian Gallery in New York City © The artist. Courtesy Gagosian Gallery

Estimated total calories members of Congress burned giving Bush’s 2002 State of the Union standing ovations:

22,000

A fertility scientist named Panayiotis Zavos announced that he had created human-cow embryos that were theoretically viable, but denied that he planned to allow such a hybrid to be implanted in a woman’s womb. “We are not trying to create monsters,” he said.

A statistician determined that the five most common first names among New York City taxi drivers are Md, Mohammad, Mohammed, Muhammad, and Mohamed.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

In Praise of Idleness

By

I hope that after reading the following pages the leaders of the Y. M. C. A. will start a campaign to induce good young men to do nothing. If so, I shall not have lived in vain.

Subscribe Today