Tax Problems For Kennedy, Or Something More Personal?

By: Brian Montopoli
Topics: Congress

(AP)

The New York Times is reporting that Caroline Kennedy dropped her bid to take over the Senate seat vacated by Secretary Of State Hillary Clinton because of problems involving taxes and a housekeeper that emerged during the vetting process.

The newspaper's source is a person close to New York Gov. David Paterson, who will be appointing Clinton's successor to the seat.

A source close to Kennedy, however, tells CBS News Director of Political Coverage Steve Chaggaris that Kennedy likely did not pull out over tax or housekeeper issues but over a more "serious" personal issue.

According to the source, Kennedy spoke to Paterson late yesterday afternoon to say she was removing herself from consideration. During the conversation, Paterson did not tell Kennedy she was not going to be appointed to the seat. In fact, the source said, Kennedy's sense was that the governor intended to appoint her.

Paterson gave Kennedy 24 hours to rethink her decision, the source said, and she subsequently wrestled with it. She decided to stand by her decision late last night.

The governor announced late this afternoon that he will make a Senate announcement tomorrow at noon. Among the leading contenders are New York Attorney General Andrew Cuomo and Congresswoman Kirsten Gillibrand.

Kennedy said yesterday she was removing herself from consideration for the seat due to a "personal situation." As CBS News reported previously, an aide said the issue was not related to the health problems of her uncle, Sen. Ted Kennedy.

According to the CBS News source, the reason Kennedy dropped out of contention truly is personal, and is something that only she and her immediate family are aware of.

There have been numerous conflicting explanations for Kennedy's decision, and the Times story includes comments from a Kennedy aide that suggest any tax or housekeeper issues may not have been significant enough to derail Kennedy's bid.

The aide suggested the issues had been acknowledged by both sides and "the Kennedy camp and the governor's operation had been discussing how to publicly disclose the issues" if she were selected.

The newspaper did not offer details on Kennedy's alleged tax and housekeeper problems.

Other storylines about the Kennedy withdrawal persist. CNN is reporting that Paterson belived Kennedy was not "ready for prime time" and had no intention of appointing her.

The CNN story cites a Kennedy ally saying that Paterson's disfavor was not a factor in her withdrawal. But the New York Post, which broke the Kennedy story yesterday, reported that she did know she wasn't going to be chosen and withdrew simply to save face.

Brian Montopoli
Brian Montopoli is the senior political reporter at CBSNews.com.
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by cepe10-2009 January 23, 2009 4:30 PM EST: Ronald Reagan = Spend, spend, spend = go into debt, debt, debt = become a debtor nation. Nice work Ron.; Reply to this comment


by hunterdon6 January 23, 2009 3:57 PM EST: A politician who doesn''t like to pay taxes but likes to spend our tax money. I bet if you took a random check, you would find alot of politicians in this boat.; Reply to this comment


by dagrandma January 23, 2009 3:42 PM EST: To quote Ronald Reagan - talk about the democrats and all you get is tax tax tax and spend spend spend. Well now we know why they are that way - they don''''t pay the taxes they impose on everybody else.
Posted by swin5

Correct me if I''m wrong, but haven''t we spent a big pi$$pot full of money in Bush''s war?; Reply to this comment


by dagrandma January 23, 2009 3:30 PM EST: Caroline is about 51 yrs old. Why does her face have the lines of a 75 yr old? Sh looks like a hag from all the bad living over the years. This is the face a debauched junkie.
Posted by azirine at 03:46 AM : Jan 23, 2009
They''''re gonna have to start photo shopping her, and it will be an all-day project.
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Posted by b4ucmyI at 05:33 AM : Jan 23, 2009

You''re both disgusting.; Reply to this comment


by navyjimfl January 23, 2009 3:07 PM EST: the sorry shape of the world today is depressing.....no one in the news with integrity.....priests steling millions from their church......money managers stealing from their investors......governors selling senatorial seats.....people in the news not paying their legal taxes.....having affairs......its depressing; Reply to this comment


by barbaraf4 January 23, 2009 1:59 PM EST: "In fact, the source said, Kennedy''s sense was that the governor intended to appoint her."
~~~~~~~~~~
Caroline Kennedy needs to hear the word "no" more often. I can''t believe she actually believed she was going to be appointed. Does she know what a Senator does?; Reply to this comment


by ghwab1949 January 23, 2009 1:57 PM EST: Clinton was impeached and deserved to be removed from office not because of any affair he had. (Lots of presidents apparently have had lots of them.) He was impeached because he lied about it under oath at his deposition -- that is a really serious offense. The legal sysystem requires under penalties of perjury that people tell the truth under oath. He did not and he was the chief law enforcement officer of the United States. Impeaching him for his perjury was correct and he should have been removed from office.; Reply to this comment


by cbs4me3 January 23, 2009 1:11 PM EST: Life will go on for her and also Geitner (who had failed to pay taxes), yet Illinois Governor is being villified. How about a movie.; Reply to this comment


by dumdnc January 23, 2009 12:31 PM EST: azirine-enough with the personal attacks. Leave that to the libs. She wasn''t qualified and we here in upstate need some reprsentation.

Enough!; Reply to this comment


by bobnjersey January 23, 2009 12:30 PM EST: [What a Trip we''''re having with these Demos. The Bushes are looking like Saints with all this CHANGE we can count on.]
[Posted by pepperwood2 at 05:49 PM : Jan 22, 2009]

to who ... all the bush apologists who never saw anything wrong with anything he ever did?; Reply to this comment