Extemp Question:

Will the recent tax problems of Obama cabinet appointees negatively affect his
administration?

Sources: Associated Press, Tribune News Service, the Wall Street Journal, NY Times,
and Time Magazine

The Obama Administration could use a Cabinet repairman; here, Joe the Plumber is not
needed. The Cabinet has suffered countless blows to its reputation as various nominees
avert the IRS. The American public, in general, feels the need to express their growing
concerns about the Cabinet appointees’ tax difficulties. One instance involved President
Barack Obama’s recent February 9th visit to Elkhart, Indiana to promote his economic
proposals.
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According to a February Time news article, President Obama was approached by a
woman in the crowd who confronted him, saying, “You've come to our county and have
asked us to trust you, but those whom you have appointed to your Cabinet are not
trustworthy and cannot handle their own budget and taxes.” Obama replied to the woman,
stating that these were “honest mistakes.”
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This poses the question of whether the tax problems of President Obama’s Cabinet
appointees will negatively affect the Obama administration. It is the Obama
administration’s duty to appoint Cabinet members who can manage their own personal
finances before they attempt to correct our nation’s economic crisis. Thus, we must
examine the actions of two main Cabinet appointees, as well as several other Cabinet
appointees, that have recently gained notoriety for their failure to pay taxes.
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Senator Tom Daschle, the former nominee for Health and Human Services secretary, has
failed to pay $128,000 in taxes. The source of these taxes involves Daschle’s use of a
chauffeur service which was furnished upon him by a private-equity firm. Senator
Daschle should have kept closer tabs on his tax situation; however, Daschle had come to
realize his mistakes and had paid back his taxes, along with interest, last month, saying he
would have not been able to proceed "with the full faith of Congress and the American
people,” and, since we are analyzing Senator Daschle’s recent actions, we must then
examine another appointee who has received criticism for their troubles with the IRS.
According to a February L.A. Times news article, Timothy Geithner, president of the
New York Federal Reserve Bank, secretary of the Treasury, and engineer of the endeavor
to end the current credit crunch, owes $43,000 in taxes over a period of 4-years, interest
included. Geithner, a supposed financial wizard, has oddly ignored his Self-Employment
Tax liability for over 4 years. The Obama administration needs a reliable, respected
official to oversee the IRS, not a tax dodger. This leads me to the assessment of another
Cabinet appointee who has been unjustly held accounted for her spouse’s tax problems.
According to a February NY Times news article, Hilda Solis, President Obama’s
selection for Labor secretary, has most recently been scrutinized and unfairly held
responsible for her husband’s failure to pay $6400 in taxes that had been outstanding for
over 16 years. Solis’ husband paid off his tax lien last Wednesday, and Robert Gibbs, the
White House press secretary, has confirmed that these tax problems are not a hindrance
to Solis’ nomination for labor secretary. Which brings me to the evaluation of another
Cabinet appointee that has taken the initiative to omit herself from candidacy to prevent
unneeded distractions during these hard economic times.
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Former first chief performance officer candidate, Nancy Killefer, withdrew her
nomination after failure to pay off payroll taxes on her household help. Killefer’s
nomination was receded 3 hours before Senator Daschle decided to withdraw his
candidacy for secretary of Health and Human Services. Killefer told President Obama her
tax problems could create delays and distractions during these tough economic times. It is
unclear whether Killefer’s tax blunders were known before she was nominated by
President Obama. While there is little information about Killefer’s tax problems, she
deserves an ounce of acclaim for admitting her faults.
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As you can see, the recent tax problems in President Obama’s Cabinet have had a
negative effect on the reputation of the Obama administration. Daschle and Killefer have
already admitted their mistakes and have omitted themselves from their positions in the
Cabinet. Senator Daschle could have used his own advice before he uttered the words,
“Make no mistake, tax cheaters cheat us all, and the IRS should enforce our laws to the
letter.” It is up to President Obama and the Senate whether Timothy Geithner is eligible
for the position of Treasury secretary. If Geithner cannot pay back his own taxes, he is
not fit to oversee the IRS.
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I urge you to reconsider the Obama Administration’s decision to bestow the position of
secretary of the Treasury upon Timothy Geithner.
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The Obama administration should make every effort to select law-abiding candidates to
preside government positions.