They Fell Like Dominoes

Benjamin Franklin once said, “Nothing in this world is certain but death and taxes.” In the past couple of days, we’ve seen how “certain” taxes really are, and how not paying them will certainly get you in a lot of trouble.

It seems like a no-brainer: you must file your income taxes by April 15. If you can’t figure it out yourself, you hire an accountant. For most Americans, if you mess it up, you get audited and possibly owe the United States government more money. However, as we’ve recently learned, for a few Americans messing up income taxes or “forgetting” to pay them will cost a lot more than just money – it will cost you your high-level position in the Obama Administration.

Yesterday two very high-profile Obama picks for important cabinet positions handed letters to the President, requesting that their names be withdrawn from consideration. In the morning, Nancy Killefer, Obama’s pick for the newly created Chief Performance Officer position, requested her name be withdrawn amidst allegations that she failed to pay employment taxes for household help for about 18 months, the Associated Press reported. In her letter to the President, Killefer said,

“I recognize that your agenda and the duties facing your Chief Performance Officer are urgent. I have also come to realize in the current environment that my personal tax issue of D.C. unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid. Because of this I must reluctantly ask you to withdraw my name from consideration.”

Later the same afternoon, Tom Daschle, Obama’s choice for Secretary of the Department of Health and Human Services, also withdrew his name after it was reported he did not pay $146,000 in back taxes. Like Killefer, Daschle said,

“If 30 years of exposure to the challenges inherent in our system has taught me anything, it has taught me that this work will require a leader who can operate with the full faith of Congress and the American people, and without distraction. Right now, I am not that leader.”

Obama said he still supported the confirmation of both Killefer and Daschle, but he accepted both of their decisions.

Although Killefer and Daschle withdrew yesterday, this is not the first time “Tax Gate” has derailed a potential nomination. Timothy Geithner has since been confirmed as Secretary of the Treasury, but his confirmation was initially put on hold after it was reported he did not pay social security or Medicare taxes for several years while he worked for the International Monetary Fund.

At yesterday’s press briefing, White House press secretary Robert Gibbs attempted to explain the withdrawals by stating, “You can’t set a standard of responsibility but accept a different standard of who serves.” He indicated that Obama’s commitment to accountability and transparency were part of the decision, but he struggled to explain why Timothy Geithner was confirmed while the others withdrew, the Washington Post reported.

Taken individually, the tax problems of Geithner, Killefer and Daschle may not seem so extreme. However, with three high-level nominees all having tax problems that call to question Obama’s themes of government accountability and transparency, they fell like dominoes.

February 4, 2009
by Anna Lafferre

Posted in Performance Wire