Sarah Palin’s Per Diems

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Things have been so busy that I haven’t had much time to post recently. Nonetheless, during the presidential campaign I posted about the tax consequences of Sarah Palin’s per diems, and that post was picked up by the New York Times. It turns out that, after much hulabaloo and what Paul Caron over at TaxProf describes as a “pathetic” opinion from the McCain campaign, the State of Alaska has finally conceded that it should have withheld taxes on Governor Palin’s per diem payments.

Recently, much has been made by Republicans of the failure of President Obama’s nominees for cabinet positions to pay their taxes. This story illustrates the hypocrisy of that position. Sadly, to paraphrase President Obama, the failure to pay taxes is not a Democratic issue or a Republican issue, but an issue for Americans of all political stripes.

-Tony Infanti

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