As the Senate Finance Committee reviewed Tom Daschle's financial records on Monday, Daschle himself apologized for "the errors that required me to amend my tax returns." But that apology didn't turn out to be enough. On Tuesday, Daschle withdrew his name from consideration as the Obama administration's Health and Human Services nominee.
Throughout all this, however, he offered no apologies for the riches he reaped quite legally by serving the interests of private health care companies.
There are plenty of things in Daschle's financial history that should have alarmed the White House and his former Senate colleagues a lot more than a car and driver he forgot to report to the IRS. (Some of them are well documented by others here at Mother Jones.) But no one seemed much concerned about such matters--a fact that in itself reveals the inherent weaknesses in President Obama's restrictions on former lobbyists serving in government.
Massachusetts Senator John Kerry was one of several leading Democrats who defended Daschle on the Sunday morning news shows. Kerry declared that Daschle's tax issues were an "innocent mistake" that would not affect his ability to perform his job "one iota."
Yes, it's probably true that being driven around in a Cadillac and not paying taxes on it won't compromise Daschle's capabilities or independence as HHS secretary or "health czar." The same cannot be said about all the income that Daschle did report to the IRS. As described by the New York Times:
As a politician, Mr. Daschle often struck a populist note, but his financial disclosure report shows that in the last two years, he received $2.1 million from a law firm, Alston & Bird; $2 million in consulting fees from a private equity firm run by a major Democratic fundraiser, Leo Hindery Jr. (which provided him with the car and driver); and at least $220,000 for speeches to health care, pharmaceutical and insurance companies. He also received nearly $100,000 from health-related companies affected by federal regulation.
Mr. Obama has instituted rules requiring former lobbyists in his administration to pledge not to deal with former clients...As a strategic adviser to companies, Mr. Daschle did not have to register as a lobbyist, and is not technically covered by those rules.
"He's never lobbied, therefore he's not in violation of the pledge," [Press Secretary Robert] Gibbs said. "The president is comfortable with Senator Daschle's variety of experiences and backgrounds. It's why he believes he's best suited to the efforts to reform our health care system."
The Washington Post offered further details on how "exactly how, without becoming a registered lobbyist, he made millions of dollars giving public speeches and private counsel to insurers, hospitals, realtors, farmers, energy firms and telecommunications companies with complex regulatory and legislative interests in Washington":