President Barack Obama’s pick for U.S. trade representative is the fourth nominee to have tax issues. Former Dallas Mayor Ron Kirk will file amended tax returns for 2005 through 2007 and pay almost $10,000 in back taxes.

Ron Kirk’s tax problems stem from excess deductions for basketball tickets and failure to report speaking fees. 

White House officials and key senators call the errors minor and predicted that the issue should Kirk’s nomination to be U.S trade representative.

“When you put anybody’s tax filings under a microscope, people don’t have to be dishonest,” said Senate Majority Leader Harry Reid, D-Nev. “It’s just hard to do all the right things. It certainly shouldn’t disqualify him.”

Senate Finance Committee aides uncovered Kirk’s tax issues during weeks of his examination and evaluation for the cabinet position.  Kirk, a lawyer and the Texas Democratic Party’s 2002 Senate nominee, will file amended tax returns for the last three years and pay the Internal Revenue Service $9,975 plus interest.

This careless error pales in comparison to some other Obama Cabinet picks.

Treasury Secretary Timothy Geithner paid $43,000 in back taxes before his confirmation. Tom Daschle, the former Senate majority leader who withdrew his bid to lead the Health and Human Services Department, paid $128,203 in back taxes, plus interest, for failing to report as income the car and driver a friend had provided to him.

Labor Secretary Hilda Solis’ confirmation was delayed for weeks amid questions about her husband’s unpaid taxes. Outside the Cabinet, an Obama pick for a top White House job withdrew over questions about her tax compliance.

Texas Sen. John Cornyn, a member of the GOP leadership and the finance committee who defeated Kirk in the 2002 race, had been supportive of the nomination. But Monday night, an aide called the tax problems “a very serious offense.”

“He’s very disappointed,” Cornyn spokesman Kevin McLaughlin said. “He’s hopeful Mr. Kirk will take the opportunity to provide an explanation when he comes before the finance committee.”

The top Republican on the panel, Sen. Charles Grassley of Iowa, “will reserve judgment on the nomination until the vetting process, including the hearing and any follow-up questions resulting from the hearing, is completed,” said spokeswoman Jill Gerber.

His tax bill includes three main discrepancies:

1. He owes $5,800 because of $37,750 in honorariums from 16 speeches dating to 2004. He assigned the fees to be paid directly to a scholarship fund at his alma mater, Austin College in Sherman. The Finance Committee said he should have reported the income and claimed a corresponding charitable deduction.

2. Kirk owes $2,600 stemming from deductions for season tickets to the NBA Dallas Mavericks: $6,208, $7,035 and $4,139 in 2005, 2006 and 2007, respectively.

A memo issued by Democratic and GOP Finance Committee staffs said, however, that “he has substantiated $9,900 of the total $17,382 as qualifying entertainment expenses.”

3. An additional $1,000 in back taxes involved deductions for $25,218 in tax and accounting fees over three years. Kirk attributed 90 percent to his law practice, but that was too high.

Last October, Kirk also paid the IRS $2,188 plus $139 interest for tax year 2006, after the IRS notified him that he had failed to report a $5,000 speaking honorarium and $819 in dividend income.

Expect some tough questioning by members of Congress but the consensus is that Ron Kirk will be confirmed as the U.S. trade representative and join Obama’s cabinet.

Now that Obama is readying to take over the presidential reins. Let’s review his campaign tax promise.

First of all Obama has proposed to raise taxes of only the most affluent Americans, those who earn over $250,000 a year.
He would also triple the earned-income tax credit for low-wage earners and increase work incentives for those Americans at the bottom.
His plan would also cut taxes for the middle class.

The Obama Tax plan is supposed to broaden tax relief of the middle and lower class and cut taxes for small businesses and those companies that keep jobs in here in the United States.

Obama also has a plan to have the government invest in health care, clean energy, education and innovation. His plan will create jobs and help protect domestic jobs.

Find out more of the Obama Tax Plan

Here is more on his plan:
Cut taxes for 95 percent of workers and their families with a tax cut of $500 for workers or $1,000 for working couples.
Provide generous tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.
Eliminate capital gains taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of healthcare and to reward investments in innovation.
Dramatically simplify taxes by consolidating existing tax credits, eliminating the need for millions of senior citizens to file tax forms, and enabling as many as 40 million middle-class Americans to do their own taxes in less than five minutes without an accountant or tax advisor.

Tax Relief For Middle Class Families will include:

A $1,000 Tax Credit

A refundable $4,000 American Oppportunity Tax Credit

A Universal 10% Mortgage Interest Tax Credit

Elimate Income Taxes for Seniors Making Less than $50,000

Expand retirement savings incentives

Health Care Credits

Expand the Earned Income Tax Credit

Expanded Tax Credits for Clean Vehicle

Simplify Tax System

Wall Street anticipated another dreadful jobs reports today and they got it. The news is actually worse that what experts were expected.

More than 250,000 Americans lost their job in October alone. That is more than 1.2 million for the year. The unemployment rate is at a 14 year high - at 6.5%. In September, that percentage was 6.1%.

Is the bad news over?
No, experts state that more than 484,000 Americans have stopped looking for jobs, believing there are none out there. That is very, very bad news for the economy.

The hardest areas hit include manufacturing, the service industry, retail, professional services and leisure. Areas least effected include Health Services, Education and Government.

It truly is a dire situation, especially with the holidays here.

Obama has a plan

Barack Obama, while campaigning for president, pledged to invest 150 billion over 10 years in “green” energy. This investment, he believes, will create 10 million new jobs; jobs that will stay here in the United States.

This would include investing in renewable energies such as wind and solar power. It also calls for investments in alternative energies such as ethanol, natural gas and hydrogen. He also wants to promote the development of the electric and hybrid vehicles.

The obvious question is where is money going to come from. But in these uncertain economic times, where is the money comes from is as important as getting the economy back on track.

It is obvious that Barack Obama has his work cut out for him. But the good news is he has the American people behind him, who share his vision and are willing to make sacrifices to get America back to where we once were.

I have been looking at the tax plans for both presidential candidates. I believe that both have good ideas and bad ideas. But it’s fair to say that we really don’t know if either of them will work.

It is true that Barack Obama’s plan is focused more on helping the “common man”, by providing tax relief to middle America - but at what expense?

Will a measly $1,000 a year really make the difference? How are we going to pay for it? The national deficit is growing at an alarming rate and additional tax cuts will just add to it.  This could have long term devastating effects on the economy and the value of the once “almighty dollar”.

On the other hand, John McCain’s tax plan calls for giving big business and the highest earners the larger tax cuts.  The “trickle down economics” of the republican plan doesn’t sit well with most Americans. But let’s be fair - it had worked in the past (some will obviously disagree).

So what is the right course to take on tax reform?  Everyone has ideas, but no one knows for sure.  I believe that giving the middle and lower classes a tax break can help the “psychology” of America.  It can help average folks feel like there is a future - that this economic crisis can be turned around.

The Obama plan calls for promoting and supporting domestic small businesses and that is great for America.  I believe that John McCain feels that same way, but he hasn’t really come across as the savior for the middle class.

I think both candidates agree that Alternative Minimum Tax must be eliminated. The tax reforms of 2001 expire in 2010 and AMT will tax more than 20 million Americans, if it is not changed.

John McCain’s plan calls for cutting the corporate tax rate to 25%, down 10% from the current 35%.  But will that only help big business?

Both candidates agree in health care reform. But again, it will cost trillions, yes trillions of dollars in the long run. Can we afford it - can we afford not to do it?

The bottom line is this: We won’t know what will work until a new president is elected,and the tax plan has time to mature.

I hate to say it - but most Americans want immediate gratification and middle class Americans deserve something to look forward to. The John McCain plan sounds great for big business and the wealthy - but what about the rest of us?