Now what is interesting is since they already set a precedent by confirming Geithner, for far less are they obligated to ignore this one? Now of course we know that Geither was the indispensable man, but Daschele is a former Senator. Decisions, decisions-Jer
Former senator Thomas A. Daschle, nominated to be secretary of the Department of Health and Human Services, paid more than $100,000 in back taxes and interest this month for the use of a car and driver over the past three years, the White House said tonight.
Daschle spokeswoman Jenny Backus said that Daschle "naively" believed the car service was a "generous offer from a friend," and he discovered only last summer that it is considered reportable income.
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Daschle brought the matter to the attention of the Senate Finance Committee "when he submitted his nomination forms," White House Press Secretary Robert Gibbs said in an e-mailed statement tonight. "We are confident the committee is going to schedule a hearing for him very soon and he will be confirmed."
The committee plans to meet privately with Daschle on Monday evening to review his financial records.
Daschle's payment of the back taxes was first reported tonight by ABC News.
Daschle is one of the few nominees for President Obama's Cabinet still awaiting a Senate confirmation vote, along with Attorney General-designate Eric H. Holder Jr.
ABC reported that Daschle began using the car and driver of a longtime friend and Democratic fundraiser, Leo Hindery Jr., after joining the private equity firm that Hindery founded, InterMedia Advisors.
Tax laws required Daschle to declare the services on his income taxes, but Daschle did not correct the violation until during his vetting to head HHS. In amending his tax returns for 2005 through 2007, he paid $101,943 in back taxes plus interest, ABC reported.
Last year, Daschle was paid more than $2 million in salary from Hindery's firm, in addition to the $2 million he earned as a senior adviser at the law firm of Alston and Bird.
Some of his former colleagues in the Senate rallied behind the former Democratic leader.
"Senator Daschle will be confirmed as Secretary of Health and Human Services. He has a long and distinguished career and record in public service and is the best person to help reform health care in this country," said Jim Manley, a spokesman for Senate Majority Leader Harry M. Reid (D-Nev.). "Senator Reid looks forward to a swift hearing and is confident Daschle will be confirmed."
Another Obama Cabinet nominee, Treasury Secretary-designate Timothy Geithner, received a grilling from senators over his failure to pay nearly $43,000 in back taxes. Geithner was eventually confirmed despite the controversy, albeit with nearly a third of the Senate voting against his installment.
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