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  #1  
Old 01-31-2009, 09:43 AM
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Daschle Comes Clean

WASHINGTON — President Obama’s pick for health and human services secretary, Tom Daschle, failed to pay more than $128,000 in taxes, partly for free use of a car and driver that had been provided to him by a prominent businessman and Democratic fund-raiser, administration officials said Friday.
....
The committee report said Mr. Daschle had told the committee staff that “in June 2008, something made him think that the car service might be taxable, and he disclosed the arrangement to his accountant.”
....
The committee report said, “Senator Daschle filed the amended returns voluntarily after Barack Obama announced his intention to nominate the senator to be the secretary of health and human services.”
....
http://www.nytimes.com/2009/01/31/us/politics/31daschle.html?_r=1&hp

So he figured out that he cheated on his taxes in 6/08, and actually filed the amended returns AFTER he was going to be nominated.

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  #2  
Old 01-31-2009, 09:58 AM
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Dem. Tax Cheat No. 2

This deserves a thread of its own... too many may have lost interest in the Geithner thread....

So, after losing his Senate seat, Tom Daschle gets a consulting job at a million dollars a year...plus chauferred limo? Hmmmm, just wondering what in his resume justifies his consulting skills so high? Or is this more of beltway influence peddling???? Or maybe there is a connection to his Uber-lobbyist wife Linda?

I don't buy his excuse. This guy ought to know that the car fringe would be taxable. So should the guy who provided the car & driver. As far as claiming a charitable deduction for a gift to a disabled vet. Horsepuckey.
Yo Tom: It's gotta be a 501(c)(3) organization. Pleeze!.
Yet this is the guy who will reform the country's health care system? He should be bounced. It will be interesting to see if he can get any Republicans to support him. Worse pickle that Geithner's IMO.

Daschle failed to pay $128,000 in taxes

Obama's choice to lead Health and Human Services is the second Cabinet pick to run into tax problems, jeopardizing his confirmation.

By Noam N. Levey
11:07 PM PST, January 30, 2009
Reporting from Washington --

Former Sen. Tom Daschle, tapped by President Obama to lead his healthcare reform campaign, failed to pay more than $128,000 in taxes in the three years before Obama nominated him in December to head the Department of Health and Human Services.

The disclosure -- involving unreported income and the use of a car and driver provided to Daschle -- comes 2 1/2 weeks after Obama's choice to head the Treasury Department, Timothy Geithner, admitted that he had not paid about $43,000 in taxes.

Geithner was ultimately confirmed by the Senate, but the revelations about Daschle's taxes cast a shadow over the man that many hoped would be able to build political consensus behind an ambitious effort to reshape the nation's healthcare system.

Daschle did not comment publicly Friday on his tax problems, which are being investigated by the Senate Finance Committee ahead of his confirmation hearing before the panel.

But a spokeswoman for the former Senate majority leader and close Obama ally stressed Friday evening that the tax errors were the result of simple mistakes that Daschle had worked in good faith to correct.


"Sen. Daschle is embarrassed and disappointed by these errors," spokeswoman Jenny Backus said.

The bulk of the unpaid taxes -- first reported Friday by ABC News -- stems from a lucrative business relationship that Daschle began with a wealthy investor shortly after Daschle left the Senate in 2005

That year Daschle was paid $83,333 a month -- or $1 million a year -- to advise a private equity fund, according to a confidential draft report prepared by Republican staffers on the Senate Finance Committee.

The South Dakota Democrat was hired by Leo J. Hindery Jr., a longtime friend of Daschle's, to consult for InterMedia Advisors. The private equity fund invests in media companies, including the Christian publishing house Thomas Nelson, the Gospel Music Channel, and Cine Latino, a leading Spanish-language movie channel.

Hindery, a Democratic donor who made a fortune in cable television, also provided Daschle with a car and driver beginning in April 2005.

Daschle estimated that 80% of his use of the car was for personal reasons. But he did not pay any taxes on the service until Jan. 2, 2009, when he filed amended returns for 2005, 2006 and 2007.

Daschle this month paid more than $100,000 in taxes and interest for the car service, according to Backus.

He paid an additional $32,491 to cover taxes and interest for a monthly payment that was not reported in 2007.

According to the committee report, InterMedia officials told committee staffers that unreported payment was the result of an employee being out on maternity leave when the May 2007 payment was processed. InterMedia had also not generated the proper tax form for Daschle at the time.

Finally, Daschle paid nearly $6,000 in taxes and interest on donations that he had improperly classified as tax-exempt charitable donations.
Backus said Daschle and his wife had believed their donations to a wounded Iraq war veteran were tax-deductible. While Obama's vetting team reviewed Daschle's tax records, however, they discovered the payment had not gone through a qualifying charity.

Daschle has thus far paid a total of $140,167 in back taxes and interest, according to the draft committee report.

After news of the tax issues leaked Friday evening, White House Press Secretary Robert Gibbs issued a statement supporting the Obama nominee.

"The president has confidence that Sen. Daschle is the right person to lead the fight for healthcare reform," Gibbs said.

A month ago, Obama's pick for Commerce secretary, New Mexico Gov. Bill Richardson, withdrew his name from consideration because of an investigation of a campaign donor who had obtained state contracts. Whether Daschle will face greater difficulties with members of the Senate remains unclear.

Republican committee staff members are continuing to look into Daschle's travel on a corporate jet owned by education loan provider EduCap Inc., according to one staffer who was not authorized to speak publicly about the issue.

And Iowa Sen. Charles E. Grassley, the ranking Republican on the Senate Finance Committee who is leading the inquiry, has been careful in recent days to avoid discussing Daschle's prospects.

Friday, his spokeswoman Jill Gerber issued a statement pledging an open process.

"Sen. Grassley's position for this nomination is the same as it has been for every other nomination processed by the Finance Committee since 2001, that all relevant information about a nominee must be made public in order for the confirmation process to go forward in the committee," she said.

The committee, which will meet privately with Daschle on Monday, has yet to schedule a confirmation hearing.

noam.levey@latimes.com


"Only little people pay taxes"
Leona Helmsley.
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Old 01-31-2009, 10:02 AM
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Love these guys. They get elected by saying they need to raise taxes on everybody, meanwhile these hypocritical bastards aren't paying their own. Has Obama paid any? Maybe we should look into that.
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Old 01-31-2009, 10:09 AM
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Love these guys. They get elected by saying they need to raise taxes on everybody, meanwhile these hypocritical bastards aren't paying their own. Has Obama paid any? Maybe we should look into that.

His returns were posted on his web site during the campaign. Pretty unremarkable stuff. He made a lot of money publishing his books. Also, his wife's hospital salary really took off once he went to Congress. She was paid north of 400,000 in the Cook County Hosp. System.

edit: Of course, I am ignoring the Rezko transactions.

Hey, Mr. Daschle, how about limiting the salaries of health care administrators? I wonder how many others made more than her in that system. Surely she couldn't have been the top dog??......could she?
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Old 01-31-2009, 10:16 AM
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Change, change, change, change, change, change, change, change, change, change, change, change, change, etc, etc, etc......
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Old 01-31-2009, 11:10 AM
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He will have to adjust these returns again to pay the medicare tax on the fringe benefit and maybe lower his charitable contributions further.
Two strikes may send him back to the bench.

RAW DATA: Full Senate Finance Committee Report on Daschle


Statement from the Senate Finance Committee on the Nomination of Thomas A. Daschle:

Thomas A. Daschle recently filed amended tax returns for 2005, 2006 and 2007 reporting $128,203 in additional tax and $11,964 in interest. The adjustments resulted from additional income for consulting services and the use of a car service, and reductions in charitable contribution deductions. Senator Daschle filed the amended returns voluntarily after Barack Obama announced his intention to nominate the senator to be the Secretary of Health and Human Services. The Presidential Transition Team identified the charitable contribution issue and Senator Daschle self-identified the income adjustments.

Senator Daschle paid his long-time personal accountant to prepare his original and amended tax returns for years 2005, 2006 and 2007. All returns were filed jointly with his spouse. The 2006 tax return was examined by the Internal Revenue Service. Senator Daschle was represented during the IRS examination by his accountant. The senator did not have any personal contact with the IRS examiner. The IRS did not propose any adjustments to Senator Daschles tax return and accepted it as filed.

Tax Adjustments

Background

On January 2, 2009, Thomas A. Daschle filed amended tax returns for 2005, 2006 and 2007 to report the following adjustments:

Unreported income from the use of a car service in the amounts of $73,031, $89,129 and $93,096 in 2005, 2006 and 2007, respectively.

Unreported consulting income of $83,333 in 2007.

Reductions to charitable contribution deductions of $1,500, $7,575 and $5,888 in 2005, 2006 and 2007, respectively.

The car service and the consulting income were received in connection with Senator Daschles business relationship with InterMedia Advisors. The table on the next page shows the additional income and reduced deductions, tax and interest the senator reported with each amended return.

Finance Committee Staff reviewed Senator Daschles original and amended returns for tax years 2005, 2006 and 2007. Staff requested information to substantiate several items on the returns and has completed the review of this data. Senator Daschle met personally with staff on January 26, 2009 and his accountant participated in the meeting via telephone. Telephone interviews were conducted with the InterMedia General Counsel and Accounts Payable clerk on January 29, 2009.

Car Service Income

Senator Daschle is a limited partner in InterMedia Partners of Englewood, CO and Chairman of its Executive Advisory Board. Senator Daschle also is an independent consultant to InterMedia Advisors, LLP of New York City. He entered into a business relationship with InterMedia in February, 2005. Beginning in April, 2005, the senator was provided the use of a car and driver by Mr. Leo Hindery, the Managing Partner of InterMedia. In addition to being business partners, Mr. Hindery and Senator Daschle have been personal friends for many years. Charges for the car and the services of the driver were billed to InterMedia. InterMedia did not issue Senator Daschle a Form 1099 for the value of the car service and Senator Daschle did not report the value of the car service as income on his original tax returns for 2005, 2006 and 2007.

Senator Daschle told staff that in June, 2008, something made him think that the car service might be taxable and he disclosed the arrangement to his accountant. Under Section 132 of the Internal Revenue Code, the value of transportation services provided for personal use must be included in income. Senator Daschle estimated that he used the car and driver 80% for personal use and 20% for business use. On January 2, 2009, Senator Daschle filed amended returns for 2005, 2006 and 2007 reporting the value of the car service as income. He did not pay self-employment tax on the personal value of the service. It was determined during the Committee review of Senator Daschles returns that the personal value of the car service is subject to self-employment tax. The senator has acknowledged that the 2005, 2006 and 2007 tax returns will need to be adjusted to pay the applicable Medicare taxes of 2.9% of the personal value of the service.

Consulting Income

Senator Daschles consulting arrangement with InterMedia Advisors provided that the senator be paid $83,333 per month ($1,000,000 per year) for his services. Senator Daschle received a Form 1099 from InterMedia Advisors each year reporting income from consulting fees, bonuses and reimbursements. The 2007 Form 1099 did not include the May, 2007 payment for consulting fees in the amount of $83,333. Senator Daschles accountant told Committee staff that at the time he was preparing the senators 2007 tax return he thought the Form 1099 might be understated. Staff reviewed e-mails between the accountant and Senator Daschle from March, 2008 discussing the amount reported on the Form 1099 and whether any payments were missing. Senator Daschle told the accountant that the January, 2007 check was received in December of 2006, and that was why the 2007 Form 1099 reported only 11 monthly payments. However, during the January 29, 2009 teleconference, InterMedia personnel told Committee staff they were unaware of any times when Senator Daschle was paid earlier than the first Friday of the month. The amount on the 2007 Form 1099 matched Senator Daschles personal records of payments received from InterMedia Advisors in 2007. Neither included the missing payment. The accountant did not pursue the matter further and reported the 2007 1099 amount on the Daschles 2007 Form 1040.

In December, 2008, the senators accountant contacted InterMedia while compiling information for Senator Daschles financial disclosure reports. InterMedia then discovered that the May, 2007 consulting fee payment had been omitted from the Form 1099 and notified the accountant. InterMedia personnel explained to Committee staff that the regular accounts payable (AP) clerk was on maternity leave when the May payment was due The temporary AP clerk completed a wire-transfer for the payment to the senator instead of following the usual procedure of issuing a check on the first Friday of each month. The wire-transfer was not posted to the normal InterMedia account and therefore it was not included in the 2007 Form 1099 that was issued.
Senator Daschle reported the $83,333 missed payment as income on the amended 2007 tax return. InterMedia Advisors filed a corrected Form 1099 on January 7, 2009.

Charitable Contributions

During the vetting process, the Presidential Transition Team identified certain donations that did not qualify as charitable deductions because they were not paid to qualifying organizations. Senator Daschle adjusted his contribution deductions on his amended returns for 2005, 2006 and 2007 to remove these amounts and add additional contributions

Outstanding Issues

Committee staff still is reviewing whether travel and entertainment services provided to the Daschles by EduCap, Inc., Catherine B. Reynolds Foundation, Academy Achievement, and Loan to Learn should be reported as income.

In response to Committee staff inquiries, the senator provided additional documentation for the Daschles charitable contributions for 2005, 2006, 2007. Staff notes that while copies of checks were provided, the proper donee acknowledgement for contributions over $250 was not provided for many of the charitable contributions as required for deductibility. The returns were not amended for these amounts.
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Old 01-31-2009, 11:18 AM
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A guy I used to work with went to high school with Tom Daschle. He has the distinct honor of having punched Daschle's lights out at a high school reunion. Knowing this guy, I suspect alcohol may have been involved.....
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Old 01-31-2009, 12:28 PM
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It's the new audacity of corruption.

It's different from the old audacity of corruption.
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Old 01-31-2009, 12:46 PM
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Who said that ??

Quote:
Originally Posted by Botnst View Post
It's the new audacity of corruption.

It's different from the old audacity of corruption.
There's nothing in the street
Looks any different to me
And the slogans are replaced, by-the-bye
And the parting on the left
Is now the parting on the right
And the beards have all grown longer overnight

I'll tip my hat to the new constitution
Take a bow for the new revolution
Smile and grin at the change all around me
Pick up my guitar and play
Just like yesterday
Then I'll get on my knees and pray
We don't get fooled again
Don't get fooled again
No, no!


YAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAH!

Meet the new boss
Same as the old boss
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Old 01-31-2009, 12:50 PM
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Originally Posted by Palangi View Post
Change, change, change, change, change, change, change, change, change, change, change, change, change, etc, etc, etc......
He wanted change... some change in his pocket!
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Old 01-31-2009, 01:24 PM
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Perhaps Einstein was right about taxes.
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Old 01-31-2009, 02:01 PM
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Perhaps Einstein was right about taxes.
Ya think?

I don't write the music. I just sing the song...


Reg 1-161.21(f)(7)(b)....

5) Fair market value of chauffeur services
(i) Determination of value

(A) In general. --The fair market value of chauffeur services provided to the employee by the employer is the amount that an individual would have to pay in an arm's-length transaction to obtain the same or comparable chauffeur services in the geographic area for the period in which the services are provided. In determining the applicable fair market value, the amount of time, if any, the chauffeur remains on-call to perform chauffeur services must be included. For example, assume that A, an employee of corporation M, needs a chauffeur to be on-call to provide services to A during a twenty-four hour period. If during that twenty-four hour period, the chauffeur actually drives A for only six hours, the fair market value of the chauffeur services would have to be the value of having a chauffeur on-call for a twenty-four hour period. The cost of taxi fare or limousine service for the six hours the chauffeur actually drove A would not be an accurate measure of the fair market value of chauffeur services provided to A. Moreover, all other aspects of the chauffeur's services (including any special qualifications of the chauffeur (e.g., training in evasive driving skills) or the ability of the employee to choose the particular chauffeur) must be taken into consideration.

(B) Alternative valuation with reference to compensation paid. --Alternatively, the fair market value of the chauffeur services may be determined by reference to the compensation (as defined in paragraph (b)(5)(ii)) received by the chauffeur from the employer.

(C) Separate valuation for chauffeur services. --The value of chauffeur services is determined separately from the value of the availability of an employer-provided vehicle.


(ii) Definition of compensation



(A) In general. --For purposes of this paragraph (b)(5)(ii), the term "compensation" means compensation as defined in section 414(q)(7) and the fair market value of nontaxable lodging (if any) provided by the employer to the chauffeur in the current year.



(B) Adjustments to compensation. --For purposes of this paragraph (b)(5)(ii), a chauffeur's compensation is reduced proportionately to reflect the amount of time during which the chauffeur performs substantial services for the employer other than as a chauffeur and is not on-call as a chauffeur. For example, assume a chauffeur is paid $25,000 a year for working a ten-hour day, five days a week and also receives $5,000 in nontaxable lodging. Further assume that during four hours of each day, the chauffeur is not on-call to perform services as a chauffeur because that individual is performing secretarial functions for the employer. Then, for purposes of determining the fair market value of this chauffeur's services, the employer may reduce the chauffeur's compensation by 4/10or $12,000 (.4 ´ ($25,000 + $5,000) = $12,000). Therefore, in this example, the fair market value of the chauffeur's services is $18,000 ($30,000 - $12,000). However, for purposes of this paragraph (b)(5)(ii), a chauffeur's compensation is not to be reduced by any amounts paid to the chauffeur for time spent "on-call," even though the chauffeur actually performs other services for the employer during such time. For purposes of this paragraph (b)(5)(ii), a determination that a chauffeur is performing substantial services for the employer other than as a chauffeur is based upon the facts and circumstances of each situation. An employee will be deemed to be performing substantial services for the employer other than as a chauffeur if a certain portion of each working day is regularly spent performing other services for the employer.



(iii) Calculation of chauffeur services for personal purposes of the employee. --The fair market value of chauffeur services provided to the employee for personal purposes may be determined by multiplying the fair market value of chauffeur services, as determined pursuant to paragraph (b)(5)(i)(A) or (B) of this section, by a fraction, the numerator of which is equal to the sum of the hours spent by the chauffeur actually providing personal driving services to the employee and the hours spent by the chauffeur in "personal on-call time," and the denominator of which is equal to all hours the chauffeur spends in driving services of any kind paid for by the employer, including all hours that are "on-call."


(iv) Definition of on-call time. --For purposes of this paragraph, the term "on-call time" means the total amount of time that the chauffeur is not engaged in the actual performance of driving services, but during which time the chauffeur is available to perform such services. With respect to a round-trip, time spent by a chauffeur waiting for an employee to make a return trip is generally not treated as on-call time; rather such time is treated as part of the round-trip.



(v) Definition of personal on-call time. --For purposes of this paragraph, the term "personal on-call time" means the amount of time outside the employee's normal working hours for the employer when the chauffeur is available to the employee to perform driving services.



(vi) Presumptions



(A) An employee's normal working hours will be presumed to consist of a ten hour period during which the employee usually conducts business activities for that employer.



(B) It will be presumed that if the chauffeur is on-call to provide driving services to an employee during the employee's normal working hours, then that on-call time will be performed for business purposes.



(C) Similarly, if the chauffeur is on-call to perform driving services to an employee after normal working hours, then that on-call time will be presumed to be "personal on-call time."



(D) The presumptions set out in paragraphs (b)(5)(vi)(A), (B), and (C) of this section may be rebutted. For example, an employee may demonstrate by adequate substantiation that his or her normal working hours consist of more than ten hours. Furthermore, if the employee keeps adequate records and is able to substantiate that some portion of the driving services performed by the chauffeur after normal working hours is attributable to business purposes, then personal on-call time may be reduced by an amount equal to such personal on-call time multiplied by a fraction, the numerator of which is equal to the time spent by the chauffeur after normal working hours driving the employee for business purposes, and the denominator of which is equal to the total time spent by the chauffeur driving the employee after normal working hours for all purposes.



(vii) Examples. --The rules of this paragraph (b)(5) may be illustrated by the following examples:



Example (1). An employer makes available to employee A an automobile and a full-time chauffeur B (who performs no other services for A's employer) for an entire calendar year. Assume that the automobile lease valuation rule of paragraph (d) of this section is used and that the Annual Lease Value of the automobile is $9,250. Assume further that B's compensation for the year is $12,000 (as defined in section 414(q)(7)) and that B is furnished lodging with a value of $3,000 that is excludable from B's gross income. The maximum amount subject to inclusion in A's gross income for use of the automobile and chauffeur is therefore $24,250 ($12,000 + $3,000 + $9,250). If 70 percent of the miles placed on the automobile during the year are for A's employer's business, then $6,475 is excludable from A's gross income with respect to the automobile as a working condition fringe ($9,250 ´ .70). Thus, $2,775 is includible in A's gross income with respect to the automobile ($9,250 - $6,475). With respect to the chauffeur, if 20 percent of the chauffeur's time is spent actually driving A or being on-call to drive A for personal purposes, then $3,000 is includible in A's income (.20 ´ $15,000). Eighty percent of $15,000, or $12,000, is excluded from A's income as a working condition fringe.



Example (2). Assume the same facts as in example (1) except that in addition to providing chauffeur services, B is responsible for performing substantial non-chauffeur-related duties (such as clerical or secretarial functions) during which time B is not "on-call" as a chauffeur. If B spends only 75 percent of the time performing chauffeur services, then the maximum amount subject to inclusion in A's gross income for use of the automobile and chauffeur is $20,500 (($15,000 ´ .75) + $9,250). If B is actually driving A for personal purposes or is on-call to drive A for personal purposes for 20 percent of the time during which B is available to provide chauffeur services, then $2,250 is includible in A's gross income (.20 ´ $11,250). The income inclusion with respect to the automobile is the same as in example (1).



Example (3). Assume the same facts as in example (2) except that while B is performing non-chauffeur-related duties, B is on call as A's chauffeur. No part of B's compensation is excluded when determining the value of the benefit provided to A. Thus, as in example (1), $3,000 is includible in A's gross income with respect to the chauffeur.
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Old 01-31-2009, 02:04 PM
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Oopsie!
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Old 01-31-2009, 02:29 PM
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"Daschle Comes Clean"


Clean?
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Old 01-31-2009, 03:26 PM
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Lots of conservative voices here.

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