Daschle Withdraws

Former Senator Is Second Pick Today to Pull Out Over Taxes

Thomas A. Daschle, President Obama's choice to be secretary of Health and Human Services, has withdrawn his nomination, White House officials announced shortly after noon.

The news comes only several hours after the White House said Nancy Killefer, the management consultant and former Treasury official who had been picked by Obama to serve as the country's chief performance officer, had withdrawn from consideration for the post.

Larry Sabato, director of the Center for Politics at the University of Virginia, was online Tuesday, Feb. 3, at 2:30 p.m. ET to discuss what the withdrawals mean for the Obama administration and its vetting process.

A transcript follows.

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Larry Sabato: Well, every day's a new day in politics, isn't it? You just never know what is going to happen. The Daschle withdrawal, like all feeding frenzies, blots out the other news, for better or worse. This is an unusual scandal, let's call it "REPRESENTATION WITHOUT TAXATION", and let's see what you have to say about it.

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Anonymous: Certainly there have been cases when a nominee is surprised by the uproar over a past matter they felt was no big deal. But then there are cases like Daschle's, when the nominee certainly knew his tax problem would cause a large controversy, yet he did not bother to inform the Obama team ahead of time, so they would have the option to cancel the nomination before it was announced (Daschle's fear?) or at least prepare better. I wonder who might be nominated in place of Daschle. Any guesses? I'm ready, and my tax problems have been negligible.

Larry Sabato: Every case is different. It's hard to say what was going through Daschle's mind, or Geithner's. Did they think the tax problems were not significant? Or the less said by them, the better? There's a third withdrawal too, the deputy director of OMB, on tax grounds. This fulfills "the rule of three". It takes three data points to create a trend.

I have no idea who'll get HHS Secretary. You've got as good a chance as any! Re-check those tax returns!

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Washington, D.C.: Though I'm very disappointed that Daschle has had to back off at this time, he should go, because among the simplest talents of a citizen, never mind a lawmaker and policy enforcer, should be that of managing to pay income taxes. I'd add to that property taxes (Is anyone looking at fake "homestead exemptions"?), car registrations, library fines and other obligations. Years ago, SNL did a spoof on Bruce Babbitt, busting him for slipping through the grocery express line with 16 items. Funny skit, but why is it unimaginable that normal human beings behave well?

If Obama's first miracle is raising the bar for civic behavior of the White House staff, good for him. Maybe restoring the Constitution and U.S.'s reputation abroad will be next.

Larry Sabato: Yes, and Obama deserves credit for a raesonably tough set of ethical standards announced right after he took office. They crack down on people leaving the administration to lobby it, among many other things.

Everyone makes mistakes, and there aren't many Mother Teresa's out there begging for public positions. But it's not asking too much when we expect public officials to remember that they are role models--and most of all, that there are not two separate sets of rules, one for the power elite and the other set for the peons.

To be honest, though, I have gone through the 10-item grocery line with 11 or 12 items. At least I have felt guilty about it.

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Arlington, Va.: Well, so Daschle is out. I understand why, but it's very bad news for the prospect of getting massive health care reform passed by a fractious Congress.

I know many on the left would like to see Howard Dean nominated for HHS, but I just don't see him getting the sales job done with Congress the way Daschle would have.

So who could?

Larry Sabato: I'll be shocked if Dean gets it, given the administration's treatment of him, but I have no idea who's on the Obama radar screen. Daschle would have been a great fit for the task of health care reform, so it is indeed a setback to those efforts.

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Baltimore, Md.: Did no one notice Daschle had basically been influence-peddling for the big health organizations for a few years?

Larry Sabato: Apparently not. Or they didn't care, since it is business as usual inside the Beltway. So many former congressmen do it; they cash in and game the system. In their view, they've been underpaid for years as a public servant, so when they leave office, they try to make up for lost time. It's nothing but influence-peddling and access-delivery. It's hard not to be cynical about it.

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Real World, USA: Hi Mr. Sabato, Perhaps this rash of withdrawals is more a symptom of the D.C. climate than the administration's cabinet choices. At least the candidates are withdrawn, unlike the corruption we have seen in prior administrations (KBR). Are there any honest/qualified possibilities out there?

Larry Sabato: Thanks for pointing this out. I hate to dwell totally on the negative. I've been in and around politics since I was 7, and while most people refuse to believe it, some of the finest human beings I have ever known have been in politics--yes, even some in high office! They are not perfect, and none of us is. I'm sure they are some relatively untainted individuals out there who can be tapped to give us public service for the right reasons, who believe what George Mason wrote in 1776, that "magistrates [officeholders] are our servants, and at all times amenable to us."

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Washington, D.C.: Is it overly optimistic of me to think this will motivate other politicians who have been "forgetting" to pay their taxes to start doing so, just in case they're one day tapped for a Cabinet position?

Larry Sabato: All scandals have positive sidelights. The accounting industry in DC just got a big boost. It may now be recession-proof. And you'd better believe a lot of people, not just politicians, are taking another look at their old 1040s. Could tax compliance go up in April because of Daschle/Geithner? Hope springs eternal.

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College Park, Md.: Greetings Mr. Sabato: As a tax paying member of the public, I'm wondering how can President Obama's administration justifiy raising taxes when his own appointees don't even pay their fair share?

Larry Sabato: That's the lasting downside for the Obama administration. When the time comes to raise taxes, your soundbite will be used repeatedly.

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Fairfax, Va.: Who is responsible for the vetting process? Was it the transition team or is it more than that? Everyone wants to know exactly who is responsible for missing these things. Are there any guidelines?

Larry Sabato: The vetting team is large and full of bright attorneys, pols, and others. Obviously, the full story hasn't been told here. Did the nominees hide key facts? Did the vetters underestimate the seriousness of the offenses? Or did they assume that a heavily Democratic Senate during the honeymoon would just rubber-stamp the nominees? Look for more details in your morning newspaper!

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Fairfax, Va.: Shouldn't Mr Geithner do the honorable act and resign as Ms. Killefer and Mr Daschle have?

Larry Sabato: You can make that argument, and there is simply no question he consciously cheated on his taxes (check the details that came out if you doubt this). But he's been confirmed, even with some GOP votes, so no, I don't think he'll resign.

But since Geithner now controls the IRS, I'll bet we can expect lots of taxpayers to invoke their interpretation of "the Geithner rule" whenever the tax agency comes a calling.

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New York: On the one hand, I am not surprised at any of these nomination snafus, because I am a cynic and have always believed that this is just what elites (whether Democrats, Republicans or Masters of the Universe) do. But on the other hand, I find myself feeling a great and indignant populist rage swelling up against all of them, and I don't think I'm alone in that. Does this mean that Obama's "non-partisan, centrist, let's not rock the boat too much" strategy is going to fall flat?

Larry Sabato: As an old populist myself, I'm not going to quarrel with your premise--though as I said earlier, there are many honest, good people in public office. (There are also a fair number of scoundrels who will do anything they can get away with, and they are in both parties.) But President Obama, while taking some hits here, still has wide and deep public support. These controversies are side shows, because most voters are focused squarely on the economy. If the economy recovers, Obama will be forgiven much else.

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Hubris: Do these guys really think they will never get caught? Or that if they do get caught, it won't matter in the big picture? (whether it's back taxes, hiring an illegal, having an affair, or selling a Senate seat)

Larry Sabato: I looked into this question when I wrote a book called "Feeding Frenzy" back in the early 1990s. Here's one answer. Every top official, almost by definition, has been very lucky in life. They've hit the lottery of life repeatedly, and avoided the pitfalls that have taken many others down. They begin to think they are invulnerable, and over many years, as longtime members of the power elite, they come to believe they are special and entitled. Pride goeth before the fall.

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New York, N.Y.: Did Obama miscalculate re Gregg at Commerce? Would he really have nominated him if he thought a Republican caretaker senator would be the result, and having done so, is he now stuck?

Larry Sabato: No, this could pay off for the Democrats. Bonnie Newman is a moderate Republican. We'll see how faithful she is to the GOP caucus. More important, she's a caretaker. The Democrats were unlikely to defeat Gregg in 2010, but they have at least a 50-50 chance to take the open Senate seat in 2010.

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Washington, D.C.: I think it's a safe bet that Daschle, Killefer and Geithner will never see the inside of a courtroom for failing to pay their taxes. How can a judge sentence anyone for tax evasion after this with a straight face?

Larry Sabato: As I suggested, expect a lot of courtrooms and IRS proceedings in the future to include a mention of Timothy Geithner--and not in the respectful way he would want.

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Laurel, Md.: Is part of the problem that Mr. Obama has a very short resume as a national figure, and doesn't know many people who weren't either senators or his primary opponents (like Bill Richardson). Obviously, he has plenty of advisors who know everybody; but is Mr. Obama himself simply less familiar than most about what everyone's skeletons might be?

Larry Sabato: Interesting theory, but over many years, we've seen that some of the most surprised people when a scandal breaks are those closest to the public officials at the center of the storm! Officeholders become very good actors in the public spotlight--kind of a reverse Ronald Reagan effect. They can conceal a lot even from those who surround them. Eliot Spitzer, for example.

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Vero Beach, Fla.: As a political scientist, do you have an opinion about why the mainstream media and the White House Press corps seem to have a demanding, aggressive attitude toward a Democratic administration compared to the relatively meek submissiveness exhibited by the MSM and WH press corps to a Republican administration?

Larry Sabato: As many studies have shown, a large majority of the top media people are liberal and Democratic. In some cases, their known bias may inhibit them from aggressively questioning Republican presidents, in the sense that they are bending over backwards to show how fair they are. They have no such inhibition with Democratic presidents, since they probably voted for them.

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NoVa: What really got me was Daschle's delaying until 2009 to pay those back taxes. It would have looked a lot better if he'd paid the taxes for the car and driver last June. It would have looked a little better if he'd paid them as soon as Obama announced his nomination back in November or December. But to wait until January 2, 2009 -- it almost seems as if there were some tax advantage for waiting until 2009. If that is indeed the case, I say he showed very bad judgment What do you think?

Larry Sabato: Daschle would be the first to say he should have done a lot of things differently. Maybe it was just procrastination or avoidance of an unpleasant subject.

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Washington, D.C.: As someone working inside the Beltway, I find it funny that people always assume ex-officials like Daschle will be in the tank for their former employers. Does anyone ever stop to think that maybe, just maybe, people like Daschle who were in Congress for many years before being involuntarily retired decide to cash in and secure their retirements even though they don't side with or believe in their private business clients? Think about lawyers (I'm one). Just because lawyers have an ethical duty to represent their clients to the full extent of the law does not mean we agree with our clients as a matter of public policy. In fact, many lawyers I know do not. If we keep this up, the only people able to go into public service are trust fund babies and rich people.

Larry Sabato: We're almost there as it is! At least a third of the Senate (pardon me, the House of Lords) are millionaires--some, many times over.

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Minneapolis, Minn.: Hi Larry -- Thanks for taking questions today on this timely topic. Given what's going with Obama's nominees today, one would think that there are no tax lawyers available in D.C., a city with probably the highest density of attorneys per square block in the United States. What in the heck is going on? What exactly do those questionnaires ask? And add to that recent history (see: Clinton administration, early 1993). Believe me, I support Obama, but this is amateur hour.

Larry Sabato: Have you ever asked for a rate card from a DC lawyer? The costs will deter anyone. (Just kidding to all the DC lawyers reading this. I love you all. Don't sue me.)

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Anonymous: Do you think any of this populist backlash will enliven an actual third party in our politics any time soon ?

Larry Sabato: Doubtful, given the barriers to third parties. But I'm always open to it. It enlivens my business--on which I pay all my taxes.

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Anonymous: Do you think Obama will publicly comment on this? He said he supported Daschle despite it all. Do you think Obama feels defeated? Is this just a "welcome to Washington" thing going on? Is the honeymoon over?

Larry Sabato: Not to excuse any of this, but all administrations have early bumps in the road. Obama is no different--and if he thought he might be, he now knows differently.

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Alexandria, Va.: I am really bothered that Obama chose Judd Gregg for sec of Commerce and doesn't get a thing for it...like a Democrat in Greg's seat. I don't think a Republican president would have accepted this ridiculous arrangement. If Greg really wanted the post, why give him the opportunity to dictate his terms? I want Obama to be tough and not such a wimp.

Larry Sabato: See my earlier answer. The Democrats didn't get a senator immediately, but then I don't believe Gregg would have accepted the appointment in that circumstance. Instead, Democrats get a much better shot at the seat in 2010.

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Larry Sabato: Many thanks for your questions. Sorry I couldn't get to them all. Clearly, this is a subject that has stirred people. And more facts will come out, which may change our views about it all. Best wishes to all. Larry Sabato

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