Senate Finance Committee Will Conduct Closed-Door Meeting Monday To Discuss Tax Problems of HHS Secretary-Nominee Daschle
HHS Secretary-designate Tom Daschle (D-S.D.) on Monday will meet privately with the Senate Finance Committee to discuss his disclosure of his recent payments of back taxes and interest, Bloomberg/Philadelphia Inquirer reports (Bloomberg/Philadelphia Inquirer, 1/2). Last week, Daschle disclosed that he recently amended tax returns and paid $128,203 in back taxes and $11,964 in interest (Freking, AP/Orlando Sentinel, 2/1). Part of those taxes included the use of a car and driver provided to Daschle by Leo Hindery, a media and telecommunication executive who founded InterMedia Advisors. Daschle previously served as chair of the InterMedia Advisors advisory board (Pear, New York Times, 1/31). According to a Finance Committee panel, Daschle failed to report more than $83,000 in consulting fees in 2007, due to an apparent clerical error by InterMedia Advisors, and has not provided sufficient documentation related to $15,000 in charitable contributions that he and his wife made over a three-year period (Connolly et al., Washington Post, 1/31).Daschle spokesperson Jenny Backus said, "He made a mistake. He identified a potential problem on his own, and when he confirmed the problem, he fixed it and told everyone immediately" (Weisman/Trottman, Wall Street Journal, 2/2). She added, "Sen. Daschle is embarrassed and disappointed by these errors" (Levey, Los Angeles Times, 1/31).
Meeting Details
According to the Wall Street Journal, the tax problems likely will "dominate" the meeting between Daschle and the Senate Finance Committee (Weisman, Wall Street Journal, 1/31). The committee must confirm Daschle before his nomination can move to the full Senate for consideration (Connolly/Kane, Washington Post, 2/2). The committee has not scheduled a date for a confirmation hearing for Daschle (Levey, "The Swamp," Chicago Tribune, 1/31).
Few senators have indicated that the tax "problems could imperil his confirmation," the Journal reports (Wall Street Journal, 2/2). "If no major issues about Daschle's nomination come up" at the meeting, committee Chair Max Baucus (D-Mont.) likely will announce a confirmation hearing for Daschle, but because committee rules "require that members receive seven days' notice before a confirmation hearing, ... Daschle likely won't appear before the panel until the week of Feb. 9," Roll Call reports (Brady, Roll Call, 1/30).
Health Care Connections
Some senators also have raised concerns about connections between Daschle and the health care industry through his role as a "special policy adviser" at Alston & Bird, a law firm that has more than 50 health care lobbying clients, as well as lobbying that his wife has done on behalf of Schering-Plough ten years ago (Levey, Los Angeles Times, 2/1).
According to financial statements submitted to the Office of Government Ethics that Daschle recently disclosed, he has received more than $497,000 over the past two years for speeches and appearances by health insurers and other health care companies and groups, some of which have a stake in health care policy (Schouten, USA Today, 2/2).
A Washington Post graphic details what health-related groups paid Daschle for speaking (Washington Post graphic, 2/1). Backus said the speaking fees Daschle earned do not pose conflict with any health reform efforts. (Daniel, AP/San Francisco Chronicle, 2/2).
Daschle has said that, if confirmed as HHS secretary, he will avoid for one year participation in issues that involve his former employers, as well as health companies and groups from which he received payments, for one year (USA Today, 2/2).
Comments
White House Press Secretary Robert Gibbs said of the recent disclosures by Daschle that President Obama "believes that nobody is perfect" and that "nobody is trying to hide anything" (New York Times, 2/1). Gibbs added, "The president has confidence that Sen. Daschle is the right person to lead the fight for health care reform. We are confident the committee is going to schedule a hearing for him very soon and he will be confirmed" (Wall Street Journal, 1/31). Jim Manley, a spokesperson for Senate Majority Leader Harry Reid (D-Nev.), said, "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," adding, "Senator Reid looks forward to a swift hearing and is confident Daschle will be confirmed" (Connolly, "44," Washington Post, 1/30).
According to the Washington Times, "Senate Democrats on Sunday's talk shows sounded a similar note, agreeing that their former leader had made mistakes, but they also said Mr. Daschle is the right man to be HHS secretary and lead the Obama administration's health care reform efforts." Sen. Dianne Feinstein (D-Calif.) on Sunday during an appearance on CNN's "State of the Union" said, "Mistakes were made, (but) the taxes are going to be paid," adding, "It should not destroy the worth of this man for the American people." Feinstein said, "What's important to me in this nominee is that he knows how to do it," adding, "He's had the experience with (Capitol) Hill to know the difficulties of moving the (health reform) program" (Lengell, Washington Times, 2/2).
Sen. Charles Schumer (D-N.Y.) on Sunday during an appearance on CBS' "Face the Nation" said that Daschle "will be approved both by the Finance Committee and the whole Senate" and that his tax problems were "clearly an oversight." According to Schumer, Daschle "is one of the most respected people, and particularly in health care. He knows the health care issue. He knows the senators. He knows the politics. At a time when we have to really dramatically overhaul health care because people are hurting, I think we need Daschle as secretary of HHS."
Sen. John Kerry (D-Mass.) on Sunday during an appearance on NBC's "Meet the Press" said that the tax problems were "obviously a mistake" and an "innocent mistake" (CQ Today, 2/1). In a statement, Kerry added that Daschle "is a man of great character and integrity who will do a superb job in helping us fix our health care system" (Kane, Washington Post, 2/1).
Editorial
The reaction to recent disclosures by Daschle will "be fascinating to watch, less for what it says about Mr. Daschle than what it will reveal about Democratic standards," a Wall Street Journal editorial states. According to the editorial, although some congressional Democrats have said that "Daschle deserves to be confirmed because they 'know' he is 'honest,' ... that isn't the standard Mr. Daschle set for GOP appointees who had no ethical taint."
In regard to his connections with the health care industry, Obama is "showing that lobbying is fine as long as it is done by people who agree with him," the editorial states. "If nothing else, a vote to confirm Mr. Daschle will expose the insincerity of Democratic tax populism," the editorial states, adding, "If Mr. Daschle were the stand-up guy his fellow Democrats say he is, he'd withdraw his nomination and spare them the embarrassment of confirming someone who thinks the tax laws apply only to other people" (Wall Street Journal, 2/1).
Broadcast Coverage
ABC's "This Week" on Sunday included comments from Sen. Jim DeMint (R-S.C.) about Daschle (Stephanopoulos, "This Week," ABC, 2/1).
CBS' "Face the Nation" on Sunday included comments from Schumer about Daschle (Schieffer, "Face the Nation," CBS, 2/1).
CNN's "State of the Union" on Sunday included comments from Feinstein about Daschle (King, "State of the Union," CNN, 2/1). A transcript of the show is available online.
CNN's "Sunday Morning" on Sunday included a discussion about Daschle (Nguyen, "Sunday Morning," CNN, 2/1). A transcript of the show is available online.
NBC's "Meet the Press" on Sunday included comments from Kerry about Daschle (Gregory, "Meet the Press," NBC, 2/1). A transcript of the show is available online.
NPR's "All Things Considered" on Sunday included a segment about Daschle and his tax problems ("All Things Considered," NPR, 2/1).
