Monday, February 9, 2009

Is Senator Bennett a Hypocrite about taxes?

Some say: Senator Bob Bennett is hypocritical because he was hard on Senator Tom Daschle about his income tax problems while owing even more himself.

Beyond the Headlines: Although both men have been in the news about taxes, the circumstances are very different, Recent articles about Senator Bennett seemed designed to stir up controversy by ignoring the differences.

Senator Bennett's tax problem occurred in 2005. At that time, Bennett was an investor in the Anniversary Inn. Due to financial problems the company did not pay property taxes for a number of years. Neither the investors or the company were hiding anything, and eventually the taxes and interest were paid. Although it may be upsetting to those who pay property taxes on time, it is not unusual for businesses to be late on property tax payments, effectively getting "cheap loans." Individuals sometimes do this with their personal property taxes as well, but Bennett is not known to have done this.

Daschle's main tax problem was that on his personal income tax returns in '05, '06 and '07 he did not report as income the value of a car and driver that were provided for him as part of his employment compensation and which he used personally. Without this income, his tax liability was lower. According to the Senate Finance committee, “in June 2008, something made him think that the car service might be taxable, and he disclosed the arrangement to his accountant.” He subsequently filed amended returns and paid the taxes owed. This correction of his taxes did not come until he was preparing for the possibility of a role in a new presidential administration, and Senator Bennett commented that the situation left a "cloud over [Daschle]" and that he needed to drop out of the nomination for Health and Human Services Secretary.

Source - Bennett's tax problems
Source - Cheap Loans
Source - Daschle's tax problems

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