Ron Sims' nomination for Deputy Secretary of Housing has hit a speed bump. Sims recently admitted that for the past seven years he has filed tax returns correctly and on time. He owes no back taxes.
'êI don'êt see how he can fit in with the rest of the Obama team,'ê one insider remarked. 'êWhat kind bozo pays all the tax he owes?'ê
Publicly at least, President Obama continues to support his nominee. 'êWhile payment of all taxes owed may reveal a lack of creativity and initiative, it should not, by itself, disqualify a nominee,'ê Obama contended. 'êWho has not, at least once in his or her life, filed a correct tax return?'ê
There may be still be time for Sims to under-report income or overstate deductions by amending his returns. Rahm Emanuel, Obama'ês Chief of Staff, advised Sims to submit amended returns claiming bogus tax losses on Son of Boss tax shelters.
The Son of Boss shelter used partnerships and a hyper-technical definition of the word "liabilities" to create billions in paper losses that taxpayers then used to offset their real gains. The IRS estimates that users saved $6 billion in taxes in all.
'êUsing Son of Boss would signal not only financial sophistication but, more importantly, total contempt for the tax laws because the IRS has outlawed this particular scam,'ê Emanuel asserted.
However, some Obama advisers think that even Son of Boss might not save the Sims nomination. 'êGiven his record, last-minute tax chiseling is not convincing,'ê political adviser David Axelrod, counseled. 'êI think he needs to claim that the income tax is unconstitutional and no one need pay.'ê