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Did Tax Evasion Derail Caroline Kennedy's Senate Bid?

by on January 22, 2009

It appears that Caroline Kennedy took her name out of consideration for the U.S. Senate because tax evasion and an illegal immigrant housekeeper has been uncovered.

The account emerged 14 hours after Ms. Kennedy announced that she was taking her name out of contention for the Senate seat vacated by Hillary Rodham Clinton, and as Mr. Paterson, according to two well-placed Democrats told of his thinking, was leaning toward selecting Representative Kirsten E. Gillibrand, an upstate lawmaker in her second term in Congress. Mr. Paterson has scheduled a news conference at noon Friday in Albany to announce his choice.

Hard feelings toward Ms. Kennedy were clearly building among the governor’s staff on Thursday, after a dramatic evening in which she was reported to be dropping out, then wavering, then ultimately, shortly after midnight on Thursday, issuing a statement ending her candidacy.

The person close to the governor said Mr. Paterson “never had any intention of picking Kennedy” because he had come to consider her unready for the job. The person did not describe the exact nature or seriousness of the tax and household employee issues.

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