OK, simple enough, but Daschle disclosed to the Senate Finance committee that he used it about 80% for personal use and didn’t disclose it or pay taxes on the personal transportation benefit.

He discovered it himself when he found out he was the president’s pick, filed amended tax returns and paid the back taxes and interest before the Senate Finance committee hearings.

“Under Section 132 of the Internal Revenue Code, the value of transportation services provided for personal use must be included in income.” 

Now here’s the complication and the lines between business and personal cross.  What if the Daschles were going to an invited business affair in the car?  Is the transportation personal, or business?  Is the transportation to do business considered business?  My transportation expenses to my first job are not deductible as business expenses, only my transportation expenses to my second job, and not from there to home.

So what if the Daschles were going out to a personal dinner in the car, and Tom’s cell phone rang from a business contact.  Would the ride suddenly transport into a business expense for as long as the conversation lasted?

Lawyers face this dilemma all the time.  They may go out to a business lunch to discuss a legal issue, and the lunch is a business expense.  What if they start talking about the Super Bowl during dessert and coffee?  Do they divide up the check accounting-wise to business and personal?  What portion of the waiter’s tip goes to business?

Members of the committee staff from both parties have been examining a number of other issues, including Tom Daschle’s relationship with EduCap, a student loan company.

Members have been asking if Tom Daschle should have been registered as a lobbyist as well while working at the law firm Alston & Bird, where the firm was registered as a lobbyist for EduCap and as well as health care companies.

In his financial disclosure report, Mr. Daschle said he received compensation for providing “policy advice” to EduCap. The exact amount was not disclosed, but it was more than $5,000.

EduCap reports to the Internal Revenue Service that it does business as the Catherine B. Reynolds Foundation and is the principal underwriter of the annual meetings held by the American Academy of Achievement, which has, on several occasions, honored Mr. Daschle.

In its report, the Senate Finance Committee said its staff was still reviewing “whether travel and entertainment services provided to the Daschles by EduCap Inc., Catherine B. Reynolds Foundation” and the Academy of Achievement “should be reported as income.”

Enough to give you a headache?

I’m certainly not saying the Senate Finance committee is wrong or accusatory in their findings.  Certainly, taxes and business dealings are the easiest to find, and we certainly want our top government officials as clean as possible.

The IRS relies on estimates with as much backup as possible for credibility in estimates like that.  I suppose Tom could have kept a detailed log (maybe on his Blackberry) of travel and entertainment purposes with dates and times, or written a personal check at the end of each trip in which part of the ride was personal.   Please!!

There are lots gray areas in income tax collection, and if Tom Daschle is under scrutiny, other officials including the president are faced with the same daily dilemmas.  That’s why they all have aides to take care of the minutia.  And if they don’t, they can help the employment problem by hiring one.

I would hope the Finance Committee will soon confirm Tom Daschle and other presidential choices while still doing their jobs.  I know I would feel more comfortable if Tom Daschle were putting his full attention to improving our health care, and the president was able to concentrate fully on fixing the economy.

When questioned about the delay to confirm Tom Daschle, a spokeswoman for the Finance Committee, said, “There’s been a lot on the committee’s docket.” 

No wonder.