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February 03, 2009
John Hawkins The Democrats' Tax Hypocrisy

It seems to have escaped the notice of very few people that the Democratic Party is incessantly calling for taxes on the American people even as some of its highest ranking members have cheated on their taxes. This has produced a bevy of great quotes today,

"Change... It Used to Be We Found Out About the Crooks After They Were In Office." -- Gateway Pundit

"As one leading Democrat put it: "Make no mistake, tax cheaters cheat us all, and the IRS should enforce our laws to the letter."

That Democrat was then-Sen. Tom Daschle in 1998. The same Tom Daschle, we've since learned, who failed to pay more than $100,000 in back taxes for perks he received as one of Washington's most relentless influence-peddlers -- that is, until he realized he might receive a job in the Obama administration spending the money most Americans conscientiously send to Washington.

Daschle's hardly alone. The recently confirmed Treasury secretary, Timothy F. Geithner, also failed to pay taxes he owed (even though he surely must have known he owed them) until it became politically expedient to pay them. Now he runs the IRS. Take that, suckers." -- Jonah Goldberg

"(Al) Franken, who is still fighting incumbent GOP Sen. Norm Coleman for Minnesota's Senate seat, failed to pay at least $70,000 in taxes to 17 states prior to running for office.

...Franken refused to answer questions and blamed his attorney Allen Chanzis for the error-- much like Geithner blamed the mass-market tax software for his failure to pay $34,000 in taxes.

...There a few other Democrats who have gotten in trouble for their finances lately although the media has been slow to make a narrative out of the obvious big picture story: Democrats Campaign to Raise Taxes, Fail to Pay Their Own." -- Amanda Carpenter

"Daschle Never Forgot to Vote for Higher Taxes." -- Josiah Ryan

"First Tim Geithner. Now Tom Daschle? Who's Obama's next cabinet pick - Wesley Snipes? Dianne Wilkerson?

Not to upset the loyal O-Bots out there, but the last guy from Chicago to have this much income tax trouble was Al Capone. And at last report, he still had an outside shot at getting Commerce secretary.

President Obama pledged to change Washington, and he has. Before Obama, tax cheats used to lose jobs." -- Michael Graham

"Did the Democrats adopt a plank in their party platform last summer re quiring all of their top dogs to have serious personal tax problems?" -- New York Post

"Tom Daschle failed to pay taxes on a quarter-million dollars of income related to the chauffeured Cadillac that ferried him about town for three years. But don't call the guy a limousine liberal.

...Indeed, the senators will almost certainly confirm the former member of their club, barring the discovery of more tax problems. But in doing so, they risk leaving the impression that they operate under the Leona Helmsley rule: Only the little people pay taxes." -- Dana Milbank

But, that's just it, Democrats apparently do think "Only the little people pay taxes." Why else would Obama even want Tim Geithner to run Treasury? Why in the world would the Democrats allow a tax cheat like Charles Rangel to run the Ways and Means Committee, where he's actually writing tax code that the rest of us have to follow? This is not just hypocrisy. This is hypocrisy on the scale of Jim Bakker preaching from the pulpit during the day and groping Jessica Hahn in a seedy hotel room at night.

The Clintonesque idea that "character doesn't matter" has obviously permeated the Democratic Party from top to bottom, which is no surprise when the guy at the top of the party habitually lies, laughs off campaign promises, and knowingly appoints people who don't even follow the laws they're in charge of enforcing. It's sickening really, how openly corrupt the Democratic Party has become now that they have enough votes not to even have to pretend to care about what the American people think.

Update #1: And they're not done yet!

Nancy Killefer, who failed for a year and a half to pay employment taxes on household help, has withdrawn her candidacy to be the first chief performance officer for the federal government, the White House said Tuesday. Killefer was the second major Obama administration nominee to withdraw and the third to have tax problems complicate their nomination after President Barack Obama announced their selection.

The White House said Obama had accepted Killefer's decision and that the 55-year-old executive with consulting giant McKinsey & Co., would explain her reasons for pulling out later Tuesday.

When her selection was announced by Obama on Jan. 7, The Associated Press disclosed that in 2005 the District of Columbia government had filed a $946.69 tax lien on her home for failure to pay unemployment compensation tax on household help."

At this point, it's like they're rubbing it in America's face. "Ha! Ha! We're going to tax and spend until our hearts are content, but we're not going to actually pay the taxes we put on you -- and we'll get away with it, too!"

Update #2: "What is the purpose of vetting if the process doesn't disqualify Richardson/Geithner/Daschle/Killefer, etc from being offered the job??" -- Amanda Carpenter

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Note: Comments and Trackbacks for this entry closed on February 8, 2009 09:47 AM
Comments (38)
Where's the hope and change in all this, libs? You idiots fell for Obama's lies hook, line and sinker.
LOL. Anyone care to lay odds on whether or not our resident libs' respond to this thread?

Taxes are only for the little people. You peasants need to do your patriotic duty and fork over your funds. Us educated elite people know better than you do what to do with your money.

/typical liberal
They'll provide some sorry-ass justification why it's OK for Democrats to cheat on their taxes, then go on their soapbox how rich CEO's don't pay their taxes either.

The bottom line is all they care is what Obama will give them in terms of free healthcare, subsidized benefits, etc.
Nancy Killefer, who failed for a year and a half to pay employment taxes on household help, has withdrawn her candidacy to be the first chief performance officer for the federal government, the White House said Tuesday.

Does ANYBODY in the Democratic party pay taxes?
New plan for balancing the budget: make Democrats pay their taxes. Just three Cabinet nominees and a Senate candidate and we're already getting close to $250,000.
New plan for balancing the budget: make Democrats pay their taxes. Just three Cabinet nominees and a Senate candidate and we're already getting close to $250,000.


Dammit! Another keyboard ruined by my laughing out loud while drinking coffee!
Posted by Mike_M
2009-02-03 11:41:51

Too funny.
First classic post of 2009!
Hey Cav, since you're around, you were right about McCain. Having him as President now would be an utter disaster. How great of a disaster will be determined by his vote on Porkulus, but his vote on the TARP bailout cemented his status as a big government "moderate". Most of this bill (that McCain seems ok with) done under the guise of conservatism would be more damaging in the long run because when it failed the country would jump even farther left. Obama retaining Gates to abdicate the War on Terror to was also an unforeseen benefit.

I'll say your cynicism was 75% justified. If we're talking about President Palin or Jindal four years from now, I'll bump it up to 100% ;)
Daschle withdraws!
I'll say your cynicism was 75% justified. If we're talking about President Palin or Jindal four years from now, I'll bump it up to 100% ;)


Thanks, Mike. We sure had our moments over McCain, didn't we? Imagine if the Republicans were the ones pushing this horrific pork package instead of opposing it. It would have forever severed them from the Conservatives, leaving both completely out of power for a decade or more. I just hope that with Michael Steele as RNC Chair, the Repubs will find their way back to being the more Conservative party.

The Foxes Are in the Hen House

It is now clearly apparent to any one willing to make an objective assessment of those chosen by Obama to comprise his cabinet that never before has there been a more immoral group of criminals nominated to such lofty posts in our history. Contrary to all of the claims heralding the dawn of an age of responsibility those whom the liberal messiah has chosen to surround himself with represents the typical elitist who dominate the so called progressive movement. This sort double standard is typical operating procedure for this group of scandalous do-nothings whose only pursuit in life would appear to be contriving ways to siphon wealth away from the producers so that they can distribute it amongst the dregs of society in order to garner themselves just one more vote. As they sit ensconced in the robes of authority and influence they imagine that the very laws with which they burden the creator of wealth simply have no meaning for those who occupy such lofty positions. The very people who Obama, in his blind obstinacy, has chosen to enforce the laws of the land are themselves guilty of their most egregious violations, violations which if committed by the average citizen would be met with financial devastation at the hands of the IRS and the sting of the jailers lash.

more at:
http://www.hostileopposition.blogspot.com
Posted by Mike_M
2009-02-03 12:47:40

Posted by CavalierX
2009-02-03 13:15:11

Cav,

I second Mike's sentiments. Right now, President McCain would be a disaster of unimaginable proportions for the future of conservatism. I'm not sure the remaining Republicans in the House and Senate won't be a disaster anyway, but you called it right on McCain.

I'm still not sold on Palin, but 2012 is a long way off. Right now, I'm more concerned about 2010 (as a business owner, mostly I'm concerned about 1Q09).
Drudge ran an old NRO post yesterday;

“Make no mistake, tax cheaters cheat us all, and the IRS should enforce our laws to the letter. ” Sen. Tom Daschle, Congressional Record, May 7, 1998,
As stupid as this whole thing is, this would be a perfect opportunity for conservatives to use Daschle's "mistake" to illustrate how ridiculously complicated the tax codes are.
No excuses for Daschle, but from what I've heard about the particulars in this case, someone not familiar with tax codes could have easily made the same mistake.
Where's the hope and change in all this, libs? You idiots fell for Obama's lies hook, line and sinker.
Posted by Kingfisher
2009-02-03 10:02:29

Cmon King. Hopey McChange changed the inauguration ceremony to the most expensive inauguration ever thrown in a recession and hoped we would not notice. All the while, we are lectured by the Lord Messiah that we need to sacrifice. Then The Lord Messiah picks a tax cheat to run the IRS and hopes we don't notice. That has never been done before. That is hope and change right?
For all those people who called them "tax and spend" democrats, Daschle and others have proven you to be liars. They don't pay taxes, just spend them :-o

On a serious note, all these tax dodging while claimed as mistake, appear to be complete willful. In Daschle's case, he actually knew that he owed back-taxes last June but didn't pay them (until he does now that it's out in the open).
Obama was supposedly working on building this cabinet in August, and this is what we see from him?
Posted by MrMeaner
2009-02-03 13:45:38

I made a similar mistake as Daschle on my taxes just last year, regarding compensation for the personal use of a company vehichle, but my accountant caught it at the last minute. If I had done my own taxes, I'd have missed it. If my accountant had missed it, I'd never have known about it.

I think all three nominees made justifiable mistakes. Our tax system is so rediculously complicated that, unless you file a 1040EZ form, almost any mistake is excusable.

However (and this is often gets overlooked), it is complicated specifically because we have so many deductions and loopholes. If you close all the loopholes and ditch all the deductions, doing taxes gets a ton easier, but a lot of people would suffer huge tax increases... so tax simplification almost has to go hand in hand with tax breaks, or else noobdy's gonna be happy on the other side of it.
We need a simple tax code. One that everybody pays the same %. This will make it impossible for anyone to raise the taxes. They will be forced to live in there means and improve business in order to increase the money coming in. When the head of the IRS can figure it out it’s to complex. Chalk 2 down to the IRS. I think we need to audit all the house and senate members today. This would force them to consider a new tax code!!!!
The White House has become infested with cockroaches. As as with all roaches when you see one, there is always another one nearby.
Posted by ninerdog
2009-02-03 14:10:44

I agree we need a simple tax code, but here's the question: would you give up the deduction that allows you to buy a $25,000 truck for your business and depreciate the cost all in one year, just for the sake of simplicity? Would you give up your home mortgage interest deduction? What if part of the simplification process means that busineses can no longer deduct travel expenses, because the paperwork required for tracking such deductions gets deemed too complicated? I'm not so sure I would consider that a good tradeoff, unless I was going to get a tax break to make up for the loss.

For simple salaried incomes, taxes are easy as pie. I remember the days of filing a 1040EZ, and it was easy as pie, but my finances are a lot more complicated now, and I'm not even sure what a simple way to do my taxes would look like anymore.
"I think all three nominees made justifiable mistakes. Our tax system is so rediculously complicated that, unless you file a 1040EZ form, almost any mistake is excusable."

That's a good point Prez, and you're a step ahead of the GOP and even the talk shows on this. There's no better time to hammer home how absurd the tax code has become and to make a push for meaningful reform.

If we had any leaders left in the GOP it would make a nifty bargaining chip with the Dems. Work with us on tax reform or we bash you and Obama over the head with Daschle, Geithner, and Killefer for the next four years. Instead attack the system together and get conservative policies enacted at the small price of letting Obama's tax cheats off the hook.

Taxes are for non-Democrats. Democrats don't pay taxes. 50% of our nation will no longer pay taxes. Guess who they will vote for?

Go to bed early you crackers. You have large bills to pay to keep Obama's people in freebies.

As my grandad once told me, "Marriage is hard. Doing your taxes is harder."
Hey that's a damn fine point.
It may be loopholes and deductions that allow private businesses to eke by in the coming years.

I'll have to give Obama's cabinet vetting team credit. They seem to be better at catching tax cheats than the IRS.
Maybe the bigger question is how these high-profile tax cheats went unnoticed, while I, the "plumber Joes", and others who have trouble making 50-60K are harassed every few years
Posted by President_Friedman
2009-02-03 14:38:12

If you had a flat 10% personal tax rate and 15% tax rate on net corp profits, what difference would deductions make?
Posted by bthewolf
2009-02-03 16:03:52

I don't know. Under our current system, not all business profits are subject to corporate taxes... for instance, sole proprieters and LLCs treat their net income as personal income and then pay an extra Self Employment tax to make up for FICA deductions and contributions... and if the same company elects to be taxed as a Sub S Corporation, the owners can pay themselves a reasonable salary and then shield themselves from some FICA taxes on net profits that exceed their salary level.

Then you get into how exactly you determine 'net profits'. If you are going to say 'net profits' equate to revenue minus payroll and cost of goods sold (which is the simplest definition I know of), then you exclude deductions for travel expenses, office expenses, business lunches, cell phone bills, depreciation of assets, legal and accounting fees, and probably a whole bunch of other stuff I don't even know about... I'm not so sure it would be a bottom line benefit for businesses, especially for a lot of small businesses.

If you take away all of the above, I'm not sure that a lot of small businesses don't end up paying more in taxes, even at a 15% flat corporate tax rate. Hell, it would take me four or five hours just to figure out how it would effect my businesses.

I'm not saying it is a bad plan, I'm just saying it may not be as good as it sounds, and warrants some careful investigation, lest we end up regretting the fact that we got what we asked for.
Another question that just hit me about bthewolf's suggestion is whether FICA taxes would be included as part of the flat tax, or whether they would be in addition to it. As things are, they are treated as something separate, sort of a hybrid mis of tax and insurance premium.
Posted by President_Friedman
2009-02-03 17:04:06

You need to read the fair tax book. They have it all worked out. A sales tax of 27% and get rid of all other taxes. NO IRS!!! Your business and your personal income have nothing to do with it. The amount you consume does. Food clothes the basics of life are exempt to a point. The more you buy the more tax you pay.
One of the funniest things John Hawkins has ever written on this site:

"This is not just hypocrisy. This is hypocrisy on the scale of Jim Bakker preaching from the pulpit during the day and groping Jessica Hahn in a seedy hotel room at night."
Posted by ninerdog
2009-02-03 17:23:53

I admit I have been skeptical about the Fair Tax in the past, but I am slowly coming around.

Exemption on food and clothes? I think I could make a shirt that doubles as an mp3 player. Would cars with edible paint be exempt?
Posted by President_Friedman
2009-02-03 17:30:32

Dont know.. Hows the mutt??
Dont know.. Hows the mutt??
Posted by ninerdog
2009-02-03 17:49:27

Aside from the fact that she turned the hog I'm fattening up into a one-eared sow (now we call it 'uno'), she's also turned into a bread thief.
I could hide the bread in a locked bank vault and she'd figure out a way to get to it.
One more time, and I am going to load the bread package with a "habanero suprise".

Posted by President_Friedman
2009-02-03 17:54:02

For you or her??? She needs a walk and some Dad time. Either that or she really likes pigs ears...
"Either that or she really likes pigs ears... "

In her defense, the pig had escaped from its pen and was trying to make a getaway. She was just doing her job, but got a little ambitious. I feel bad for the pig now though, it is having trouble adjusting to its new life. It keeps shaking its head trying to figure out why only one ear flops aroundl. When I don't call it 'Uno' I call it 'Can't-get-right".

Posted by President_Friedman
2009-02-03 18:03:06

He is meat for the beast.. You should be upset that he is loosing weight...
All this pig talk and dems not paying taxes or penalties or interest conjures up that scene in Animal Farm where it is repainted on the barn wall that some animals are more equal. If I have misquoted--Sorry its been a long time since I read this. But the trusted pigs sure do represent what we are seeing in DC.
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