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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.
More from Ken Silverstein:
Perspective — October 23, 2013, 8:00 am
How pro-oil Louisiana politicians have shaped American environmental policy
Postcard — October 16, 2013, 8:00 am
A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits
Chance that a movie script copyrighted in the U.S. before 1925 was written by a woman:
Cari Beauchamp, Without Lying Down: Frances Marion and the Powerful Women of Early Hollywood, Charles Scribner's Sons (N.Y.C.)
Engineers funded by the United States military were working on electrical brain implants that will enable the creation of remote-controlled sharks.
Malaysian police were seeking fifteen people who appeared in an online video of the Malaysia-International Nude Sports Games 2014 Extravaganza, and Spanish police fined six Swiss tourists conducting an orgy in the back of a moving van for not wearing their seatbelts.
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