Tax troubles for president's chief of staff
Posted: February 17, 2009
9:47 pm Eastern
© 2009 WorldNetDaily
Rahm Emanuel
There could be tax troubles on the horizon for White House Chief of Staff Rahm Emanuel, who reportedly has lived rent-free in Washington for five years but hasn't paid taxes on the imputed income from that, according to reports.
He's the latest in a growing list of President Obama's nominees to have been involved in tax issues, according to those tabulating the tally in Washington.
According to WND columnist Phyllis Schlafly, several of "Obama's major nominees are mired in political embarrassment. Three withdrew their names from consideration, one sneaked through confirmation because senators were still intoxicated with the Obama honeymoon, and Obama plans to use a waiver so the Senate will approve the fifth."
"Funny thing," she continued, "Americans don't seem to like it when government officials evade the taxes the rest of us pay, especially when they evade more taxes than most Americans' entire tax bill. Apparently, that doesn't seem to bother Obama."
According to the New York Post, the free rent in a home owned by Rep. Rosa DeLauro, D-Conn., and not disclosing that "gift" apparently isn't all that's being questioned about Emanuel's arrangements, either.
Another issue is "the work Emanuel tossed the way of DeLauro's husband, Democratic pollster Stan Greenberg."
Get the latest on all the Washington shenanigans. "Welcome to Obamaland: I Have Seen Your Future and It Doesn't Work"
The Post said while Emanuel was living in the rent-free arrangement, he also served part of the time as the chairman of the Democratic Congressional Campaign Committee, which gave Greenberg several polling contracts, paying him $239,000 in 2006 and $317,000 in 2008.
The report said Emanuel has explained the living arrangements as "hospitality" between colleagues, and that's why it never appeared on his financial-disclosure forms.
But the Post suggested over five years, that rent could have been worth more than $100,000.
AOL News specifically raised the issue of the taxes on the imputed income. And it cited the earlier issues involving taxes and Obama appointees.
The report said Treasury Secretary Timothy Geithner was confirmed despite not having paid on times the taxes he was supposed to have paid, Health and Human Services nominee Tom Daschle withdrew his name over unpaid taxes and proposed Chief Performance officer Nancy Killifer also withdrew over similar problems.
Schlafly noted Daschle's tax problems involved $146,000 that went unpaid. But larger than the money was the response to such misbehaviors.
"Even after it became publicly known that Daschle had failed to pay all his income taxes, Obama defiantly declared that he was 'absolutely' standing by Daschle," she wrote.
After Daschle took his own name out of the running, Obama admitted he made a "mistake" in the selection. But he didn't admit a similar misjudgment over Geithner, who paid about $35,000 past due after being nominated to the post.
In Killifer's case, she reportedly failed to pay required employment taxes on her household employee.
Also, while the issue didn't involve taxes, Obama's first pick for secretary of commerce – New Mexico Gov. Bill Richardson – proved an embarrassment because of his involvement in an alleged pay-to-play scheme.
The Washington Post and New York Daily News also suggested at a minimum, the gift rules for members of the U.S. House may not have been met by Emanuel's extended use of free housing.
And according to reports in the Minneapolis Star-Tribune, Democrat comedian Al Franken, whose challenge to incumbent Sen. Norm Coleman still is awaiting a result in the courts, also had tax issues during his campaign.
Franken's campaign manager, Andy Barr, said Franken's accountant worked with California officials during the campaign to sort out whether he'd paid taxes on earnings in California between 2003 and 2007.
Franken earlier had left unpaid workers' compensation and disability premiums in New York.
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