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Trump batting .500 with nanny tax nominees

February 16, 2017

Donald Trump is batting .500 for cabinet members who screwed up nanny tax reporting.

This morning, the Senate narrowly confirmed Rep. Mick Mulvaney (R-South Carolina) to head the White House Office of Management and Budget. The vote was 51-49. At least Vice President Mike Pence didn't have to up to Capitol Hill to break a tie this time.

Mick Mulvaney OMB confirmation hearing_C-SPAN

Click image to watch the C-SPAN video of Mick Mulvaney's confirmation hearing before the Senate Homeland Security and Governmental Affairs Committee. His testimony apparently convinced just enough Senators to approve him on Feb. 16 for the White House budget post.

Did Mulvaney's failure to comply with the nanny tax between 2000 and 2004 contribute to the closeness of the Senate vote? 

Maybe.

Mulvaney acknowledged that during the years in question, he failed to pay $15,000 in Federal Insurance Contributions Act, or FICA, taxes, as well as federal and state unemployment taxes, for a household employee.

But what persuaded Sen. John McCain (R-Arizona), the lone Republican to vote against Mulvaney in the otherwise party-line confirmation vote, was the new OMB chief's desire to slash military spending. But McCain's opposition was not enough to stop Mulvaney's approval.

Puzder takes himself out: Today's vote on Mulvaney was just a day after fast-food chain CEO Andrew Puzder withdrew from consideration for Secretary of Labor.

The bulk of baggage that Puzder brought with him to the confirmation process apparently was too heavy to carry all the way to the Department of Labor office. There was his minimum wage stance, harassment complaints by workers at some of his restaurants, racy (read sexist) ads for Carl's Jr., and claims of domestic abuse, since recanted.

Add to that Puzder's own nanny tax troubles.

In addition to not paying the proper taxes for a housekeeper, Puzder admitted that the woman was not a legal immigrant.

Acosta is new Labor nominee: As the Senate was wrapping up Mulvaney's confirmation, Trump announced that Alexander Acosta, a former Justice Department official and current dean of Florida International University College of Law, is his new pick for Labor Secretary.

If approved by the Senate, the Cuban born former federal judge will be the first Hispanic in Trump's cabinet.

I'll let you know if any nanny tax issues pop during his confirmation process.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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