Former Sen. Tom Daschle might have survived the maelstrom and survived to take a job at the White House and the Department of Health and Human Services, but history might reflect that the choice, ultimately, was his own.
Aside from running for president, Daschle's decision today was undoubtedly the most important of his life. And while we can speculate about White House pressure, about the themes of transparency and double standards, about purity and hypocrisy, what may have trumped the chance that he could win was this: for two weeks, Daschle has spent most of his time in Boston, Massachusetts, and not preparing for the confirmation hearing; he has spent it with one of his four brothers who is desperately ill. Daschle is all South Dakota reserve, even in private. He is very sensitive to public opinion, and his public image has taken a major beating. He was portrayed as a tax delinquent, a guy who lived by a different set of standards. Before he decided to drop out, aides said that Daschle had not erected a steel barrier around him; he was sensitive to the public condemnation, and he was hurt by it. He probably concluded that he would not have been able to be as effective as he needed to be. Whether that judgment is true -- well, we can leave it to the counterfactualists.
The fact remains that until late last night, not a single senator, Republican or Democrat, came out against Daschle's confirmation. This morning, there was only one -- Sen. Jim DeMint. Rumors abound that some Democrats, like Iowa's Tom Harkin, were preparing to announce their opposition, but those rumors seem to be unfounded; Harkin (according to Fox News) was weeping when he learned Daschle had withdrawn his name. Last night, two senior administration officials told me that Daschle's nomination was on track; one told me that VP Joe Biden wasn't so sure, and so he was making calls to his colleagues, just in case. Perhaps Daschle's nomination was in trouble, and because of a disjuncture in the White House, the depth of the situation was not realized.
Daschle was also boxed in by the timing. If Daschle had remembered to check on the car situation earlier, or if he had disclosed the matter publicly before he paid the taxes, he might not have faced the maelstrom that greeted the disclosure. In December, the Republican National Committee and Congressional Republicans would have been incapable of exploiting Daschle's tax delinquency. Daschle disclosed the car-and-driver tax payments to the finance committee and the White House on January 4. Perhaps the White House, being aware of Treasury Sec. Tim Geithner's tax problems, decided that they could only fight one battle at a time.
What about the matter of quality of CHARACTER? This isn't just about timing and legalities... -what is the character of a man who purposely doesn't pay his tax bills? How have we come to be in this culture of irresponsible if not immoral behavior? I'm certain Mr. Daschle is a good family man and effective public servant... -he just isn't any damn good as a role model.
What is the character of a man who purposely doesn't pay his taxes? I don't know.
What is the character of a man who throws the first stone? He is a man without sin.
Former Senator Tom Dashchle was the best man for the job President Obama wanted to give him; the nation is the poorer for this sad turn of events. Anyone who has watched Daschle's career over the years would not characterize him as a tax dodger. My impression is that he was and remains one of the most honest individuals in Washington, and that he was fully prepared to pay what he owed. The timing was indeed of prime importance--in a tragically negative way.
As an IRS Revenue Agent charged with enforcing the convoluted Internal Revenue Code formulated by Congress, mainly in the House Ways and Means Commitee, and Senate Finance Committee (which included Daschle), I was opposed to this appointment. I believe that Mr. Daschle is generally a decent person, despite having been out of compliance with tax law he helped enact. I am also sorry to hear that his brother is ill. The fact that he focused his attention where it mattered, on family, actually says a lot about his character.
However, $128,203 (per 2005-06-07 amended returns) is a substantial tax deficiency, and is still understated by the 2.9% Medicare tax that Daschle's accountant must have missed. The magnitude of the tax bill certainly caught everyone's attention, and is primarily due to unreported income in the form of additional compensation - the use of a car and driver. If Mr. Daschle had amended his returns back in June '08 when he was remarking to his staff that the car and driver might be taxable [ "income from whatever source derived" (IRC Sec. 61)], he woud probably not be subject to criticism.
While Mr. Daschle's withdrawal has eased my burden in proposing similar adjustments to other taxpayers, he could go one better. In his new role as a self employed consultant, he could lobby for simplification of the Internal Revenue Code, in order to yield greater transparency and compliance. Reducing everyone's tax reporting and compliance burdens would go farther toward stimulating the whole economy than a tax cut here and a tax credit there.