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Obama--Let Daschle Go
It turns out that former Senator Tom Daschle waited nearly a month after being nominated to be Secretary of Health and Human Services before letting President Barack Obama know that he had not paid years of back taxes. The tax problem resonates at a time of deepening economic pain, as joblessness soars and Wall Street executives are rightfully chastised for using bailout money for multi-million dollar bonuses.
But the serious issue here is Daschle's ties to health care firms. In a letter to the HHS ethics office on January 16th (cited in the Washington Post on Sunday) Daschle wrote that he wouldn't participate in any matter over the next year in which "a former client of mine is a party or represents a party." How does one define that? And won't this then mean that Daschle is unable to play a role in passing critical healthcare reform until 2010? After all, the same Washington Post story notes that the Health Industry Distributors Assn., which represents medical product distributors, wrote Daschle "last week" to express concerns about proposed Medicare changes and "reminded him of the $14,000 speech he delivered at its conference last year." Other special interests from which Daschle collected speaking fees ranging from $12,000 to $40,000 included the National Association of Boards of Pharmacy and America's Health Insurance Plans, which represents the for-profit health insurance industry. He also gave "policy advice" to United Health, a conglomerate that sells insurance, helps the government administer Medicaid, advises drug companies and physicians and dispenses prescriptions. In fact, when all is tallied up, the former Senator received more than $300,000 in income from health related companies that he might regulate.
Experts who study this gray zone debate whether giving a speech, consulting, and otherwise taking money from special interests in return for services is different from lobbying. Nonetheless, Daschle's activities clearly pose the appearance of a conflict of interest.
This was a campaign about change. Obama spoke eloquently of ending the way Washington does business and curbing the exploitation of public service for private gain. And he followed through with his early executive order attempting to slow the "revolving door" that has allowed so many former government officials to quickly enter the ranks of registered lobbyists. But slowing that revolving door is only the first step in ending the legalized corruption of the town's lobbying culture.
Daschle's tax problems have, so far, attracted the lion's share of scrutiny. And he may well make it through the Senate---though one leading Democratic Senator told me Sunday that he may not vote for his former colleague's confirmation. But Daschle's potential conflicts of interest should persuade Obama to make this a "teachable moment" and find another public servant to tackle the critical task of healthcare reform.
If Obama stated clearly that regulators in his administration should not have any financial ties to the industries they regulate, he'd revive the change brand he campaigned and won on. Sure, there are a slew of reforms that need to be put in place to dismantle the legalized corruption of lobbying in DC,, but Obama could begin by asking Daschle to step aside.
My pick for his replacement: Howard Dean.
- Posted in




37 Comments so far
Show AllI was so happy when the president chose Tom Daschle as his Secretary for Health and Human Services. I have always admired Sen Daschle. But I am very dismayed, even angry, to find out that Daschle accepted this post without informing Obama of his tax problem.
But as stated here, the bigger issue is his obvious ties to the health care industry. I agree that President Obama should ask him to step aside.
If he doesn't, and the Senate approves him for the post, there will always be real doubt about the sincerity of both him and the administration in actually dealing with our health care crisis.
And I agree that Howard Dean would be perfect for the job.
Just look at the guy. He looks like a used car salesman and probably thinks like one.
-----------------------------------------
Remember the butchery in Gaza by the IDF.
Tom Daschle is the problem, not the solution. He is in the pocket of big pharma. That is all you need to know!
I don't have much respect for the Nation Magazine since it turned into a Democratic Apologetic a few years back, but after reading this article, my advice is to ignore Katrina from here on out. The reason can be found in Greenwald's article on Dashle a few click below hers. Katrina is worried about Dashle's taxes which apparently is only the tip of the ice burg, while Greenwald demonstrates precisely how deep the corruption runs in the Democratic party and Dashle in particular. I for one am tired of Katrina's Democratic apologetic. Just say no! Ignore people like this. If you stop commenting on articles like this, maybe she will go away.
Amen!
nb
I fully agree. Most of us have had enough of Democrats and Republicans who don't care to pay taxes but wish to mismanage ours.
Howard Dean would be an excellent choice. In fact he should have been at the top of the list, not Daschle.
Howard Dean, M.D. most definitely. He has some imperfections but he sure beats Daschle any day.
I agree, Daschle should go. The people of South Dakota got it right when they gave him the boot from his Senate seat, but probably for the wrong reasons. The truth is coming out now, his careless approach to his back taxes and his connections to big Pharma, show a real disconnect between him and us. And for that reason he would never be able to do any justice to the job of Secty of Health and Human Services.
Daschle was voted out because he kept trying to pander to Bush as an opportunist in his last 2 years that we wouldn't tolerate it. We could care less that he was liberal and in fact wouldn't mind it contrary to what you'd think of us voters. I'll admit that I'm trusting him less now that he goofed up on his taxes and I'm now finding out that he's tied to Big Pharma. I can see why Howard Dean would have been better.
Terrance Mitchell
Redfield, South Dakota
Howard Dean, M.D. most definitely. He has some imperfections but he sure beats Daschle any day.
Before vanden Heuvel and commenters (and who knows, maybe Obama himself) get too enthused about Howard Dean as a replacement for Daschle as HHW nominee, please reflect on the fact that health care industry lobbyists have invested huge amounts of campaign money for candidates of both major parties. As chair of the DNC, and responsible for that entity's fund-raising, can anyone believe that he is really "lobby-free" in his ability to, say, promote single-payer health insurance, on which he insisted in the 04 campaign that he was not a supporter? See the analyis, as of June 2007, of this lobby's contributions:
http://www.calnurses.org/media-center/press-releases/2007/june/page.jsp?itemID=30931049
Daschle's probably been channeling Leona Helmsley, who thought taxes were just for the little people. We've got major problems if he's the best Obama can get for that job.
LET'S HAVE A VOTE-IN
Everyone go to the whitehouse dot gov website and send an e-mail: VOTE FOR DEAN. There is a Office of Public Liaison box in the lower right when you go through the "briefing" tab.
Also do it on the change.gov website and anywhere else it's likely to get attention.
It is totally unacceptable to have Daschle in this position. His "FEES" from the health corporations are thinly veiled BRIBES for future access...which they are now reminding him of.
In fact, whatever happened to TAX EVASION charges? Sounds like he may be as guilty as Al Capone--who was hauled off to jail...back in the days when laws were enforced. Now, the politically connected seem to be evading laws too.///
Thanks TMinSD for the scoop in South Dakota and jogging my memory as to why Daschle was given the boot. I do recall him being a major panderer to Bush. And to think I already forgot after, what, 2 1/2 years? I wish we could do the same for our illustrious Sen. Baucus here in Montana, but alas he was just reelected by a large majority.
Hi skippyC,
Not a problem. I forgot to add though that it is true that most of those who voted for Thune were already partisan Republican voters from the getgo but judging from the closeness of that race in contrast to Kerry vs Bush, it's hard for me to deny that a lot of these voters who voted for both Thune and Bush would have likely voted for Daschle, if not Kerry, if only Daschle had kept firm. Yes, like Baucus like Johnson. I guess Baucus needs to be primaried out. I was sort of surprised that your state came closer to turning blue while ours still couldn't break past 45% for Obama.
By the way, speaking of MT, our state could use some populist Democrat transplants ala Schweizer. I hear he's been popular despite being a liberal on most issues. My wife thinks that there's a better future economically in Missoula or even Butte and Billings compared to just about any place in my state. My wife's uncle lives in Butte and thinks the situation has improved a little but isn't sure what to make of the politics since he never votes. How's the state doing these days after 2004?
Terrance Mitchell
Redfield, South Dakota
TMinSD
We almost broke the 50 percent barrier for Obama in Montana, but not quite. I think it was about 48 percent. He campaigned heavily here, lots of TV ads and several visits. I met him (shook his hand) in Butte and was quite impressed with the message of change. But once the primary was over, his rush to the center (or to the right) must have blown down a few trees here.
Our Gov. Schweitzer is quite the populist and was given the gift of a billion dollar surplus last year or two from oil production in Eastern Montana. So everyone was happy with him and the Republican opponent in his reelection last year could only garner about 40 percent. This year revenues are way down as they are everywhere, so the grins and giggles are all but over with. But he's got some national name recognition, being a Democratic governor in a long time red state, bucking the national ID program a couple of years ago, and another 4-year term to complete before you'll see his name in lights again. He's a farmer, parents were homesteaders, so real salt of the earth. Not your typical bureaucrat or oil man, so that's a good thing going for him. And, biggest of all, he wants to make Montana the energy capital of the country now, with wind generation and oil in Eastern Montana. We have hydro electric and a big wind farm near Judith Gap where the wind never stops blowing, but the new things he wants are "clean coal", which is a misnomer if ever there was one, and coalbed methane, which has its own major problems with saline pollution of the ground and rivers. We'll see.
Butte though will be getting a new plant for making wind mill blades (I think that's what they're going to do there), so Butte will be getting some new industry there. It is quite depleted there though now, and they can use all they get. Missoula is mainly a university town, formerly big in timber, but that's down. I think the biggest industry there now is California transplants, but it seems nobody's moving anywhere anymore, as the economic rains set in.
Baucus is another matter, I won't spend too much time there. But yes, he should have been primaried out. But the dems are too much enchanted with him, republicans too, because of his tenure and influence in the Senate. Finance Committee Chairman. He wrote his own ticket and can do whatever he wants now. He comes back now and then to visit, but he's a real inside-the-Beltway fixture now.
My son's a cowboy near Belvedere in winters there in SD, it's nice to know there are good thinkers there too.
It's going to kill me to agree with Katrina vanden Heuvel, for whom I have little respect left, but she is 100% right on this one. Its bad enough to have picked a tax cheat for the Treasury post. Not another tax cheat please.
If you think that is bad enough, you're gonna regret Obama's decision to keep Gates and Betrayus on board given that those two rascals are trying to thwart Obama's plans on withdrawing from Iraq in 16 months.
http://www.commondreams.org/headline/2009/02/02-3
PS: My apologies for the off-topic post here.
Daschle also voted for invading Iraq. So much for his great thinking there.
The only reason he paid his back taxes was they found him out. Had they not, he would have kept avoiding payment. Do we get to do the same? Now that Geither is off the hook for the same "small mistake," the precedent has been set.
The next appointee with an ethics problem will probably be given a pass as well.
You would think with all the money Daschle has made since leaving the Senate and becoming an unofficial lobbyist, he would have coughed up what was due the IRS like the rest of us.
I agree Howard Dean, being a doctor, would be an excellent choice.
Who vents these people anyway?
I've always felt that Daschle was a milquetoast. Now this!
Howard Dean for sure. Enough with these clintonista neoliberals!
Oh please Katrina. I agree that Daschel is a disappointment and should bow out gracefully [fat chance], but why choose Howard Dean? Because he has a high profile? Why do these political appointments always go to party faithful. I would have thought we might have learned from G. "Good Job Brownie." Bush.
There must be some terrific people who would make a great HHS secretary. A successful businessman like Lee Iacoca for example.
Sounds like more 'inside the beltway' to me.
Yep, I knew we weren't going to get much out of Obama either but alas, I had to give up and vote Obama just because Nader and Mckinney had no chance. Sigh . :(
Carla, I went through the same agony myself. Having worked on Nader's campaign in 2000 (and voting for him in '04 and '96 as well) I saw SO MANY of my progressive friends get swept away in Obamamania. Ultimately, I had to vote my conscious, so I chose Nader again, knowing, of course, he could not win.
I have no easy answer. It is a painful decision - choosing between someone who has no chance to win versus someone who has no chance to effect real change. I live in a very progressive area, with people who all want: an end to the war(s), universal healthcare, increased taxes on the wealthy, genuine funding for green technology ... etc. AND THESE PEOPLE ALL VOTED FOR OBAMA - THINKING HE'S GOING TO BRING THESE THINGS TO THEM.
I'm tired of having arguments with my friends, of conversations ending in awkward silences. NOBODY IS LISTENING. I've done what I can ... I believe the darkest days of America await us.
Sorry to be so glum. But apparently things have to get a whole lot worse before we, collectively, realize our power and summon the will to change them.
Out here in TX, neither Nader nor Mckinney were on the ballot except as write-ins. I would have voted Nader had he been on the ballot but given Barr, Obama, and Biden as the only choices to pick from, I picked Obama since I could take Barr to be for real given his past records. I didn't think my vote would count so I picked Obama which sort of counted but it's a moot thing. We need to get organized and set up true and strong progressive/liberal infrastructure, long term planning, and think tanks all over the country because right now, the DLC which is nothing more than a backdoor rightwing plant is busy hijacking the word "progressive" just like they did "conservative" and then "liberal". I would also recommend joining the Green, Democratic, and some of the Libertarian Party on common ground.
Actually, it was worse than that. I can never forget the time last year just two days before the election when I was nearly mugged by a couple of die-hard Obamaites. They ripped apart my Nader/Gonzolas T-shirt. I took out my gun shot both of them in the legs. The cops arrived and understood the situation as I explained to them and let me go and they even defended me in court the next month. I couldn't repair my shirt and on that election day, I could not get over the trauma and fear. I also felt that it was no use and gave up out of fear and anguish. I think we need to build a stronger Progressive Independent Infrastructure so that someday, someone as progressive-minded as Nader can lead the way.
Go away Katrina. You don't have a clue.
BTW, I have had enough of Mr. Obama already. He has done nothing but pick Bush and Clinton inside the beltway retreads for his administration.
This is not the change which he promised.
With fair and free election we should have a real choice. This is not a Republican Democracy; our government is a plutocracy.
Hoyt, I used to be a big Nation fan, but I've come to see them (not always but too much of the time) as cheerleading for real change, right up to the point where a crucial decision has to be made (like a vote) only to say, "well, we did the best we could and now we have to choose the best 'viable' candidate," (otherwise known as the lesser of two evils).
The reality, there is no one Obama will nominate (or even mention publicly) who will create the massive overhaul of the healthcare system we need.
Not sure what the answer is ... seems like we may just have to suffer through another depression before we can change course.
We cwertainly agree on Katrina and her rag.
I'm waiting to see if Obama signs off on this Pork Pie bill thats coming out of the Senate.
James A. Swanson, Los Altos, CA
“The Bush League of Nations”
www.bushleagueofnations.com [for FREE download of entire $25.95 book]
I’m a progressive, a native of North Dakota (the “other” Dakota), and a longtime supporter of Tom Daschle. However, he’s a terrible choice for Secretary of Health and Human Services.
My primary concern is not his bad “tax avoidance” decisions, but rather that he would be the kiss of death for universal healthcare that works.
When it comes to healthcare, Daschle represents the revolving-door, corporate-business-as-usual, Republican wing of the Democratic Party.
Especially troublesome are his ties to that life-sucking dinosaur known as UnitedHealth Group, which is Exhibit A for what’s wrong with healthcare in America.
Our healthcare system is wasteful and corrupt precisely because it is con game run by and for huge corporate interests.
The privately-milked system is structured to provide maximum returns for shareholders and wealthy industry executives who are not caregivers, while denying and delaying coverage, and passing around like “hot potatoes” those individuals most needing medical care.
America’s private health insurance companies spend billions each year on advertising and gaming the system.
Patients and the actual caregivers—doctors, nurses and other staff—are forced to waste enormous time and money coping with the bureaucratic obstacles and paperwork of hundreds of different billing and reimbursement schemes.
William McGuire, the CEO of UnitedHealth, received compensation totaling $124.8 million in 2005—an amount which could have paid the total cost of medical care for an entire year for more than 33,000 average Americans.
McGuire retired under pressure in October 2006 due to a pay and stock options scandal at UnitedHealth. An investigation determined that McGuire’s options to purchase 1.5 million shares had probably been “backdated” to increase their value. His stock option package was reported to be worth $1.6 billion—imagine 1,600 piles of one million dollars each.
That amount is many thousands of times what is paid to the most highly compensated executive in the U.S. Department of Veterans Affairs, which is run more efficiently than America’s private healthcare system.
Incredibly, the $1.6 billion in stock options for McGuire could have paid the total cost of medical care for an entire year for 422,400 Americans.
The enormous financial and political muscle behind entrenched interests like UnitedHealth has always killed the messenger and sidetracked any serious policy debate on the merits.
This is why any “reform” coming out of Congress always keeps these companies in the business of screwing America.
Sorry, Tom, but you’re part of the problem, not the solution.
Jim Swanson, Los Altos, CA
“The Bush League of Nations”
www.bushleagueofnations.com [for FREE download of entire $25.95 book]
Which matters more? The person in the position, or the policies that person pursues? Screw Daschle, replace him with one of any number of genuine progressive people who will pursue universal healthcare.
What a great idea - Howard Dean. Nobody owns Dean, and the guy's a medical doctor for the love of pete.
Did anyone of the several people who have commented here who recommended Howard Dean rather than Daschel for the HHS nomination read my post of 1:47 today? I assert there that Dean has at least as much problem of traffic with the health care industry as does Daschle...and that Dean's views on "universal health care" (by expanding "coverage") are identical with the inadequate ones of Obama and Daschle. Am I wrong or right on this? If I'm wrong, please tell me where I have erred. If I'm right, why do you persist in putting forward Dean's name for the HHS post; do you actually prefer the fire to the frying pan?
topaz
Yes,Dashle should withdraw ,and yes Howard Dean would be a good pick,why was he not to begin with ?
Does Obama insist on Dachle because of "pay back " for having supported his campaign
???
politics as usual....broken promises...some change....
This is disturbing, Health Care needs a Cure, not another politician with his hands in the profit machines pocket. http://www.wisecountyissues.com
CaLL members of the Senate Committee telling them they cannot confirm such an insider paid by the worst players in the corrupt health care business.
Call Obama's office and ask for Daschle to be dropped.
There must be several Great Mds (from harvard I think) who argued many times for a SINGLE PAYER HEALTHCARE SYSTEM ( the only one we deserve) who would do the job well.
OBAMA really cannot be trusted...
"During almost two years on the campaign trail," says the NYT, "Barack Obama vowed to slay the demons of Washington, bar lobbyists from his administration and usher in what he would later call in his Inaugural Address a 'new era of responsibility.' What he did not talk much about were the asterisks."
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/03/AR2009020300682.html
Here is your change.
Hello,
Daschell out, why not Dr.Howard Dean, or Dennis Kucinch. I see the Republicans have their "Republican Hats " on again. didn't take them long to take off their"American Hats." so much for John mcCain, he was the first to take his off.
NL