Budget pick Mulvaney acknowledges payroll tax lapse

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FILE - In this Sept. 21, 2016 file photo, Rep. Mick Mulvaney, R-S.C. speaks on Capitol Hill in Washington. Mulvaney, President-elect Donald Trump’s choice to run the White House budget office, failed to pay more than $15,000 in payroll taxes for a ... household worker more than a decade ago, prompting the Senate’s top Democrat to issue a statement saying the lapse should disqualify his nomination. (AP Photo/Alex Brandon, File) (The Associated Press)

Rep. Mick Mulvaney, President-elect Donald Trump's choice to run the White House budget office, failed to pay more than $15,000 in payroll taxes for a household worker more than a decade ago, prompting the Senate's top Democrat to issue a statement saying the lapse should disqualify his nomination.

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"I have come to learn, during the confirmation review process, that I failed to pay FICA and federal and state unemployment taxes on a household employee for the years 2000-2004," Mulvaney, R-S.C., stated in a response to written questions from the Senate Budget Committee.

It was not immediately clear the effect that the lapse would have on Mulvaney's confirmation. A hearing before the budget panel is scheduled for next week.

But Senate Majority Leader Charles Schumer quickly pounced, saying that tax problems have forced previous Democratic nominees for both President Bill Clinton and President Barack Obama to drop out and that Mulvaney should too.

"When other previous Cabinet nominees failed to pay their fair share in taxes, Senate Republicans forced those nominees to withdraw from consideration," Schumer said shortly after The New York Times initially reported the story. "If failure to pay taxes was disqualifying for Democratic nominees, then the same should be true for Republican nominees."

In 2009, failure to pay taxes sunk Obama's choice for secretary of Health and Human Services and nearly derailed his nominee for Treasury secretary. Former Sen. Tom Daschle withdrew his nomination for HHS after failing to pay back taxes of more than $100,000.

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But former treasury Secretary Tim Geithner said he made a careless mistake when he didn't pay all his taxes while working at the International Monetary Fund. He ended up paying some $40,000 in back taxes and interest. Earlier, during the Clinton years, nominees Zoe Baird and Kimba Woods were forced to withdraw for failure to pay taxes for household help.

Mulvaney said he repaid more than $15,000 before interest and IRS penalties and that state amounts had yet to be determined.

There was no immediate response from Mulvaney or his staff to a reporter's email seeking comment.