Sen. Chuck Grassley, a top Republican on the Senate Budget Committee, warned Thursday that President-elect Donald Trump’s choice for budget director could face “problems” getting confirmed to the post because of his failure to pay taxes on a household employee.
Rep. Mick Mulvaney, who was selected to run Trump’s Office of Management and Budget, acknowledged to the committee that he did not pay taxes on a household employee for four years. He later paid back taxes when learning of the discrepancy, he said in a questionnaire that was submitted ahead of his confirmation hearing next week.
Democrats seized on the news, saying such issues have forced candidates to withdraw from consideration in the past.
Now it’s not just Democrats — Grassley a veteran Iowa Republican who sits on the panel, says similar tax flaps have caused problems for other Cabinet nominees in the past and could present fresh challenges for Mulvaney.
“It could create problems,” Grassley told CNN. “I don’t know for sure, but I’ve had problems with former Cabinet people under both Republicans and Democrats where that’s either been straightened out — or if there wasn’t justification for it oppose it.”
Grassley stopped short of saying whether Mulvaney should withdraw.
A copy of the questionnaire obtained by CNN confirmed that Mulvaney informed the Senate Budget Committee that he repayed more than $15,000 in federal taxes on a “household employee.”
A source from Trump’s transition team said Mulvaney had a “sitter” for his then-newborn triplets and was unaware he had to pay taxes on her income.
Senate Minority Leader Chuck Schumer on Thursday said the issue should disqualify Mulvaney — citing the past example of President Barack Obama’s Health and Human Services nominee of Tom Daschle, who withdrew for a similar issue.
“When other previous cabinet nominees failed to pay their fair share in taxes, Senate Republicans forced those nominees to withdraw from consideration,” the New York Democrat said in a statement. “If failure to pay taxes was disqualifying for Democratic nominees, then the same should be true for Republican nominees.”
The transition team defended Mulvaney, saying he was forthcoming.
“The fact of the matter is that nobody is more qualified and more prepared to fight to rein in Washington spending and fight for taxpayers than Mick Mulvaney,” transition spokesman John Czwartacki said in a statement. “Congressman Mulvaney raised the issue surrounding the care of his premature triplets immediately upon being tapped for this position, and has taken the appropriate follow-up measures.”