Another tax problem for Obama?

Posted: Tuesday, February 03, 2009 10:03 AM by Mark Murray
Filed Under: White House, Economy, Barack Obama

From NBC's Lisa Myers, Chuck Todd, Savannah Guthrie, and Ken Strickland
NBC News has learned that the president's choice for "chief performance officer" -- technically a deputy OMB director post -- could end up having to withdraw over a number of issues, including tax problems. The withdrawal of Nancy Killefer could happen as soon as today. So far the White House has no comment on the situation.

Video: Nancy Killefer withdraws her candidacy to be the first chief performing officer for the federal government. NBC's Savannah Guthrie reports.

When President Obama announced Killefer, he made a big deal out of the creation of this post.

It's not clear if Killefer's issues are significant in a vacuum or whether she's a victim of the "Rule of Three" -- i.e., being lumped in with Geithner and Daschle. Then again, Killefer was involved with the IRS in a significant way, so there may be a zero tolerance on the tax front for her, specifically.

*** UPDATE *** The AP reports, and NBC confirms, that Killefer has withdrawn her nomination.

*** UPDATE 2 *** There was a tax lien owed to D.C. for $949.69 by Killefer filed on March 7, 2005. This amount certainly pales in comparison to what was owed by Geithner (more than $30,000) and Daschle (about $140,000).

Here's the letter from Killefer to Obama, per the White House:

Letter from Nancy Killefer to President Obama

February 3, 2009

Dear Mr. President,

I recognize that your agenda and the duties facing your Chief Performance Officer are urgent. I have also come to realize in the current environment that my personal tax issue of D.C. Unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid. Because of this I must reluctantly ask you to withdraw my name from consideration.

I am deeply honored to have been selected by you and you have my deep appreciation for your confidence in me. You have my heartfelt support and best wishes for success in all your endeavors.

Respectfully yours,
Nancy Killefer

EMAIL THIS

Comments

No wonder there is no money for anything. Who the hell is paying taxes?

eagle1776 (Sent Tuesday, February 03, 2009 10:11 AM)

A tax cheat at OMB. A fox in the hen house.

John Johnson (Sent Tuesday, February 03, 2009 10:18 AM)

Why hasn't anyone mentioned Bank of America paying 10Million for sky seats, etc at the super bowl?

Laurie L., Live Oak, fl. (Sent Tuesday, February 03, 2009 10:21 AM)

Yeah,this doesn't speak well of the Obama admin. vetting process. What are we going to find out about next??

Jeff, Colonial Heights, VA (Sent Tuesday, February 03, 2009 10:23 AM)

They should gather all the closet skeletons in Washington and sell them to Science...that should balance the budget with money left over.

Joe Sepeda,Early,Texas (Sent Tuesday, February 03, 2009 10:23 AM)

President Obama should advise Tom Daschle to step down. I like Mr. Daschle, always have, but this is not good.

Pat, Boston, MA (Sent Tuesday, February 03, 2009 10:24 AM)

where is the penalty for Daschle's failure to report income. Not reporting income is a crime! This is the way the gov. got the mob.

ken waco,tx (Sent Tuesday, February 03, 2009 10:25 AM)

At a time when democrats are demanding that "rich" people pay their fair share it is ironic that so many nominees to the administration of "change" don't pay their fair share.

More evidence that our tax system needs a major overhaul.

TJ, Atlanta, GA (Sent Tuesday, February 03, 2009 10:26 AM)

Two weeks into it, and the honeymoon is over. Obama has criminals in his cabinet, and he can't wait to bankrupt the country. He's making nice with terrorists, and Obama is telling people the biggest threat to the US is a radio talk show host.

Change. Yeah, right.

Annie Walker, MO (Sent Tuesday, February 03, 2009 10:28 AM)

Why do Democrat's have a problem paying taxes?

Richard, San Antonio, Texas (Sent Tuesday, February 03, 2009 10:32 AM)

this is not change this is politics at its best...i always said the money is in washington, just that no one is paying it just the poor middle class americans..who keep the politicans fat and happy ..the stimulus has pork in there to continue taking care of the needs of the politicians while americans lose there jobs....Washington continues to look out for themselves, as you can see by the increase in office expense which has now increased another 40million way above normal....They continue to give themselves a raise while americans continue to lose jobs..Gee how many of ous have limos with drivers i wonder whose paying that bill ..you talk about these tax problems of canadates, well if you look at the problems of many politicians that continue to serve in washington, just says no change politics as usual..Its an elite group that continue to take care of there own so screw the ones who pay for luxury and prestige...Each day more and more of ous are getting fed up...I couldnt stand watching fox and some of these news shows because of the very critical views but i bginning to wonder....I still remain a strong supporter of the president and have the trust that he will make the change......will see

Russell Fox Wells, Me (Sent Tuesday, February 03, 2009 10:33 AM)

What the hell is wrong with these people? What is so hard about following the law and paying your taxes? I don't care how "competent" Daschle would be for the HHS position. He can be an adviser from the sidelines. He should withdraw his nomination, too. Enough is enough with these clowns.

Diane from Illinois (Sent Tuesday, February 03, 2009 10:34 AM)

Huh - why would these people not tell the vetting members of their tax situations or problem, before they are chosen.

Also, I am curious as to how the IRS allow them to get away with this - because when I owed taxes - they were all over my ass and they made sure they got their money, by whatever means they could (and I am happy to say - I paid and continue to pay them).

Interesting?

Anyway - we do what we must - weed them out and move forward with our country's business.

Thank you and GOD BLESS AMERICA

The - Democrat Soldier (Sent Tuesday, February 03, 2009 10:38 AM)

Geez, you'd think we had elected Republicans with all of the tax dodging going on here. Perhaps it is true that Republcians put the money in and the Democrats either don't pay taxes or give it to someone who doesn't.

truthslayer (Sent Tuesday, February 03, 2009 10:39 AM)

Are there no qualified candidates for these positions that don't have tax problems? What does that say about the leadership of our country? The real question is; Absent their nominations for WH posts, would any of them eventually have paid their taxes owed. I say no!

William Brandt, Altoona PA (Sent Tuesday, February 03, 2009 10:41 AM)

Sorry to hear about this, but we need a replacement found QUICK!

If we have learned nothing else, we know that we need somebody watching over the congressional representatives spending our money.

P.S. To all the folks who are going to start piling on about the Obama Adminstration and "accountability", the only thing President Obama can do is choose the best and the brightest available and let them go through the process.

Most will make it, some won't, but that doesn't change President Obama's commitment to honest and transparent government.

Nashville_fan (Sent Tuesday, February 03, 2009 10:43 AM)

I still think Daschle should step down.. and I am saying this lightly...I supported Geithner..but Daschle bothers me.. Not sure about this one here.. I don't think it is a male/female issue as Norah O'Donnell is trying to make it..for one reason we don't know all the ins and outs as of yet, but to just throw that out there is just wrong on the part and sloppy journalism .. why is Ron Christie even allowed on TeeVee anymore.. he is such a jerk.. Does anyone really like him..besides Dick Cheney and I am not sure even he did.

Annette, Odessa, MO (Sent Tuesday, February 03, 2009 10:43 AM)

Why is it that millions of Americans get their taxes right every year via CPAs, TurboTax, etc., but yet our own government officials can't seem to get their taxes right at all?

Joe - STL (Sent Tuesday, February 03, 2009 10:44 AM)

Lets start checking all the Republican congress people next...see how many of them haven't paid all their taxes...bet there are just as many of them... It doesn't matter if they all do it.. geeze quit putting labels on them..
http://annette-justmylittlepieceoftheworld.blogspot.com/

Annette, Odessa, MO (Sent Tuesday, February 03, 2009 10:46 AM)

Perhaps its time to VET everyone in Government, starting with Mayors, all the way up to Congress... Imagine the back taxes we could collect! Hell, let's extend that to everyone who earned over $500,000 last year... We probably wouldn't have a deficit.

Lyn, KCMO (Sent Tuesday, February 03, 2009 10:47 AM)

Dems want to raise taxes because it turns out they figured out how to get by without paying their own.

I can never remember SO MANY being identified as TAX CHEATS in my life! It is so laughable, especially when their are so many who thought Bush and the Republicans were the THIEFS.

Yes, it would seriously appear that the ADULTS have been put in charge!

The Clowns have taken over the Circus! What a bunch of BOZO's we have in charge now.

CHANGE WE NEED....NO, MAKE THAT....THIEVES WE NEED apparently.

How stupid those who supported the Demo Donkeys and Obama/Biden must be feeling about now.

Side Note: OBAMA is up to two packs a day by now I bet. Light'em up. This is killing me, just like his second hand smoke does those around him.

Pete, Salinas, CA (Sent Tuesday, February 03, 2009 10:50 AM)

So this is number three that hasn't bothered to pay taxes...I understand Biden's, "tax hikes for the rich are patriotic", but is this because Dem's as a standard don't bother paying taxes or....

Shawn, Orlando, Florida (Sent Tuesday, February 03, 2009 10:53 AM)

LMAO OBAMA; "I nominate the best criminals, for the job"

Obama Cabinet of Corruption (Sent Tuesday, February 03, 2009 10:53 AM)

I agree with everyone - pay your F'en taxes!

However, my more jaded feminist side says, "...and another otherwise qualified woman, falls on a sword today..."

Men get confirmed, women get the shaft. Just my opinion.

Clara Kansas City, MO (Sent Tuesday, February 03, 2009 10:54 AM)

Let's not forget that the back taxes Daschle and Geithner owed came because Clueless George failed to collect the taxes. Republic party presidents are the haven of tax cheaters. Hurray for Obama collectung these back taxes!

The repugnant ones are just trying to trash Daschle again because of their petty partisan politics. These Tory Traitors will dop anything to sabotage Obama and the Democrats so they can steal their way back to power.........

Eric, Salinas, CA

....Eric says, while spinning backwards out of control from yet another Democratic Tax Cheat Obama has given the country. Bush/Cheney could never have caught all these Demo Donkey Liars, Cheats and Thieves.

It's great how OBAMA/BIDEN are parading them in front of all of us though. Like I've said all along,
Get the Popcorn ready, cause with this group of nit wits, we still have a lot more entertainment to go!

Pete, Salinas, CA (Sent Tuesday, February 03, 2009 10:57 AM)

It would be interesting to see just how many people with complex tax filings have made errors.

I don't know that a person is a cheat just because there's an error on their return but I do think those who are nominated should have had their returns audited prior to their nominations..... Intentional or not, it just doesn't look good.

New Indi (Sent Tuesday, February 03, 2009 10:58 AM)

Why have there been no REPUBLICAN tax cheats coming up?

Why have there been no REPUBLICAN tax cheats coming up?

Why have there been no REPUBLICAN tax cheats coming up?

Me Re Peat, Doster, Ga (Sent Tuesday, February 03, 2009 10:59 AM)

Before everyone starts coming down on these tax cheats, I see a trend, and its just not the dems,how about the IRS audit the full House and Senate, and then we can see who's left! With the back taxes owed, the rest of us can take it easy this year!

Di/Allentown, PA (Sent Tuesday, February 03, 2009 11:01 AM)

Another one? Another tax cheat?

It's time to impeach Obama because he is becoming a symbol of the criminal. He knows it so get his a-- out of office and let Biden rule the world. Then Biden gets the boot for being generally stupid and Pelosi finally has the power she wants. Idiot liberals.

Tombstone Shadow (Sent Tuesday, February 03, 2009 11:04 AM)

Sigh.

Anna Molly (Sent Tuesday, February 03, 2009 11:05 AM)

The tax problem is ours dear brutus not the stars , what I mean is they are the ones NOT paying till caught and they arte in charge ,now if I did that audits would fly I would be going to jail lucky for me they dont give me a chocie they just TAKE AND TAKE AND TAKE until I pay foir your schools your banks your credit cards your houses anything that gives their families money the list is endless .These thieves have it right STOP PAYING TAXES it seems as if Im the only fool still paying.

kenn (Sent Tuesday, February 03, 2009 11:08 AM)

Now I know why Liberals are all in favor of raising taxes, they don't pay any taxes... this is unbelievable. On another note, stop complaining about corp america spending money on lavish things until you start complaining about the Pres throwing a steak dinner purchasing $100 per lb steaks, or A 100k cocktail party for his reps and buddies... what a bunch of hypocrites.

Va Ind (Sent Tuesday, February 03, 2009 11:11 AM)

THIS IS A BREAKING NEWS UPDATE — Feb 3 10:20 AM US/Eastern

Official: Performance czar withdraws candidacy

WASHINGTON (AP) - Nancy Killefer, who failed for a year and a half to pay employment taxes on household help, has withdrawn her candidacy to be the first chief performance officer for the federal government, the White House said Tuesday.

Killefer was the second major Obama administration nominee to withdraw and the third to have tax problems complicate their nomination after President Barack Obama announced their selection.

When her selection was announced by Obama on Jan. 7, The Associated Press disclosed that in 2005 the District of Columbia government had filed a $946.69 tax lien on her home for failure to pay unemployment compensation tax on household help.
————————————————————————————————————-

> … DO ANY FREAKIN DEMOCRATS PAY THEIR ‘PATRIOTIC’ TAXES?

WHAT IS IT ABOUT OBAMA AND HIS LOVE FOR TAX CHEATS? —- HIS CHICAGO BACKGROUND?
.

OBAMA AND HIS LOVE FOR TAX CHEATS ?? (Sent Tuesday, February 03, 2009 11:11 AM)

Nice try, though (Sent Tuesday, February 03, 2009 11:14 AM)

During almost two years on the campaign trail, 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.”

This is better than any joke I have ever heard on late night TV and it's happening in front of our very eyes.

There has got to be a SNL skit on this for sure!

Josh Larson, FL (Sent Tuesday, February 03, 2009 11:16 AM)

I love Obama's appointees...he's getting all the tax cheats to finally pay up. Maybe that's how he's going to balance the budget!

Someone mentioned criminals....well, what do you think Chicago is famous for if not criminals...duh.

David Conley, Melbourne, Fl (Sent Tuesday, February 03, 2009 11:18 AM)

Side Note: OBAMA is up to two packs a day by now I bet. Light'em up. This is killing me, just like his second hand smoke does those around him. - Pete, Salinas, CA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wow, Pete!

You are in rare form today, you are firing the one liners off better than Jay Leno today! :)

If I were a member of the political party that had just led our country into the Second Great Depression with "voodoo economics", I too would celebrate any distractions I could find.

Have your fun Pete . . . you haven't had too much to celebrate lately.

President Obama is going to move this country (kicking and screaming in many cases) towards a "more perfect union". It ain't always gonna be pretty, but you know what? It never was meant to be.

Nashville_fan (Sent Tuesday, February 03, 2009 11:20 AM)

“Make no mistake, tax cheaters cheat us all, and the IRS should enforce our laws to the letter.” Sen. Tom Daschle (D-S.D.)
What a great quote

the truth (Sent Tuesday, February 03, 2009 11:20 AM)

Also - while we focus on President Obama's cabinet members personal problems, how about someone in the media trying to help us understand this.

Why - the gas prices are slowly creeping up - and the price per barrel of oil is coming down.

Is there gauging going on - are the oil companies, and wall streeters - trying to sneak in another 40 billion dollar profit quarter?

I think our politicians – need to take a serious look at how "energy cost" affects consumer confidence.

Because if the American people are afraid the gas prices are going to continue to rise - no amount in a stimulus packet will cause U.S. to spend – it will be a matter of survival – similar to the last 8 years.

My point - tell U.S. that the bank will loan, Wall Street will be controlled and our government will ensure we don't work our butts off to help oil companies gain windfall profits - for something we can't do without.

Bottom line - We won't spend or pay back loans, etc when the only choice we have is to pay for gas and go to work, just to have enough money left to put food on the table.

That's not the American dream - we need real changes in how our energy prices are determined and it need to be in tone with the American people not the corporate oil companies bottom line.- if not, confidence spending will be a fantasy.

Thank you and GOD BLESS AMERICA

The - Democrat Soldier (Sent Tuesday, February 03, 2009 11:22 AM)

After the way Geithner and Daschle have breezed through, why would she drop out over a $979.00 tax lien?

Richard, Washington State (Sent Tuesday, February 03, 2009 11:23 AM)

I had to pay $6000.00 in interest and penalties for not paying my state taxes on a part time job in 1999 and 2000. And I make $28,000 (in a good year, between two jobs!) Yeah, I screwed up, got caught and paid a huge price, but now I am wondering why I paid a higher price, respective to my income, than these government officials.

Amy B Portland, ME (Sent Tuesday, February 03, 2009 11:23 AM)

Appears that tax cheats are.... Democrats. No wonder the country is broke. Republicans pay their fair share... as little as possible. Democrats pay even less.... none. No wonder Obama doesn't mind raising the tax rates to people over 250K. Hussein makes way more than that with all his lucrative book deal, but he won't pay taxes either. So why worry. I get the tax break, don't pay.

joe the plumber (Sent Tuesday, February 03, 2009 11:27 AM)

lets start a movement this government should not vote on anything for a year! they should figure out how to pay there taxes and understand the 1040ez IRS form. If our secretary of Treasury can not figure it out, I think it is time to reform the tax code and go to a flat tax system. To many rules, they do not even enforce the ones they made.

TC LA, California (Sent Tuesday, February 03, 2009 11:28 AM)

Nashville Fan-I mostly agree with you but I think Daschle especially knew this was out there and didn't inform the transition team. I'm an ardent Obama supporter but these vetting problems trouble me. I think he has to draw a line somewhere.

Steeler Fan Pittsburgh, PA (Sent Tuesday, February 03, 2009 11:35 AM)

I smell a republican conspiracy – and possible IRS favoritism for government officials

The republicans are nasty, this is nasty politics

Thank you and GOD BLESS AMERICA

The - Democrat Soldier (Sent Tuesday, February 03, 2009 11:36 AM)

P.S. To all the folks who are going to start piling on about the Obama Adminstration and "accountability", the only thing President Obama can do is choose the best and the brightest available and let them go through the process.
---------------------------------------------------
Sorry Nashville Fan. You choose someone and have them go through the vetting process BEFORE you announce them to the world. -Nice try, though
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

lol

I agree that it would be better if all this was caught by "vetting", HOWEVER, as we are learning with all the current financial scandals, it is VERY DIFFICULT to find EVERYTHING. Perhaps there should have been an accountant on the vetting team . . .

My point is President Obama is not the one doing the vetting . . . clearly the ones who did may have missed a thing or two (or now three!) . . . back in the old days we called that being human. Apparently that's not allowed in our new perfect world.

I don't think there has ever been a perfect government staffed by perfect people in history, the Obama Adminsitration will be no exception.

Nashville_fan (Sent Tuesday, February 03, 2009 11:39 AM)

How can educated people that have their own CPA'S get in so much trouble. What would have happened if they had not been picked????? How many people have gone to prision for this same thing.(THEY DIDN'T GET CAUGHT)

Don Noe Pelser SC (Sent Tuesday, February 03, 2009 11:43 AM)

Support enactment of the perfect tax---a tax on personal beauty, self-assessed.

Part-time tax lawyer in California. (Sent Tuesday, February 03, 2009 11:44 AM)

This administration isn't a month old and it already has more skeletons in it's closet than the old Bush administration. You open their closet and it starting to look like Halloween.

P D Hodges (Sent Tuesday, February 03, 2009 11:44 AM)

Why is it when politicians don't pay taxes its a mistake but when I did'nt pay mine it was INCOME TAX EVASION? Would they have ever payed these taxes if they were not appointed to these positions. I doubt it.

Nick IL. (Sent Tuesday, February 03, 2009 11:46 AM)

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