Is the Devil in the Details?

By Mark Riley




Of all President Barack Obama's cabinet picks, I was most nervous about Tim Geithner, his choice for Treasury Secretary. Not that I knew much about him, but the idea that he was an integral part of putting together the TARP (Troubled Assets Relief Program) bailout made me wonder.

Now his plan to spend the second half of the TARP money (and a whole lot more) has others wondering as well. Geithner's plan lacked much of what both lawmakers and the public had hoped for. There were few specifics about how the plan would accomplish its goals of helping banks, unfreezing the credit markets, and slow the ever spiraling rate of home foreclosures.

We do know this. It will be a week or two before the Obama Administration, and not Treasury, unveils a $50 billion dollar plan to deal with the foreclosure crisis.



That's a week or two too long. The public ought to be able to see tangible benefits from both the bailout and stimulus plans, and right now it doesn't look like they will right away.

The other obvious question is this. Is $50 billion dollars enough to help struggling homeowners when 10,000 American families a day are falling into some stage of foreclosure?

Combine Geithner's hazy vision of the bailout with reports that he resisted the effort of presidential aides to impose tough oversight on those financial institutions receiving help, and one can't be optimistic about his tenure thus far.

Some lawmakers are calling Geithner's plan "Son of Paulson", referring to the disbursement of the first half of the bailout money. We still know little about where that money went. We do know it didn't do what Hank Paulson told us it would.

Is Tim Geithner asking the American people to throw good money after bad? More importantly, is he the right person to guide the nation's troubled financial ship of state?

You tell me. I'm not optimistic.

Will Daschle Go Down?

By Mark Riley

Former Senator Tom Daschle has become the second Obama Administration nominee to get caught up in a tax mess. Having to pay back taxes of about $34,000 didn't derail the nomination of Treasury Secretary Tim Geithner. But Daschle's liability is well over $100,000 dollars, and his bid to become Secretary of Health and Human Services could be different.

Congressional Republicans are now trying to use Daschle, Geithner, and New Mexico Gov. Bill Richardson's withdrawal of his name for commerce secretary to question the president's vetting process. In addition, the failure of politicians to pay taxes is an issue that resonates with the public in ways few other issues do.

People have every right to compare their own situations to those of these bigwigs and question why they seem to get away with simply paying what they owe. The appearance of a double standard is hard not to note.

Still, in Daschle's case, interesting politics seems to be at work. Senate Republicans aren't ready to say his nomination is dead in the water. That would be despite the fact that a report released Friday by the Finance Committee says Daschle questioned his accountant about possible tax problems back in June. He didn't tell the Obama transition team about his liabilities until weeks after he was nominated.

On the other hand, there are reports that one powerful Democrat in the Senate might want to see Daschle go down. Montana Senator Max Baucus has reportedly had a long running feud with Daschle on a number of issues. Some say Baucus has been slow to come to his former colleagues' defense as a result.

Daschle's supporters point out that he voluntarily reported his tax problem to the IRS when he realized the perks he was getting from a media mogul were taxable income. He's already paid the money he owed, they argue, so this shouldn't be a deal breaker.

Political intrigue aside, the average American must wonder what would have happened if Tom Daschle was Joe Public, and didn't have the money to pay off the liability so easily.

What do you think? Will Tom Daschle's tax problems sink his chances of getting an Obama cabinet post?