Princess Caroline's Personal Issues? How About Tax, Nanny and Marital Problems

Now a source close to David Paterson claims he never had any intention of appointing here becasue of myriad problems.

In a stunning revelation, a source close to Gov. David Paterson insisted this afternoon that the governor "had no intention" of picking Caroline Kennedy for New York's vacant senate seat - because she was "mired" in an issue over taxes, her nanny and possibly her marriage.

Kennedy was "mired in some potentially embarrassing personal issues," the source said, citing tax liabilities and worker compensation liabilities connected to the employment of a nanny.

The source also said the state of her marriage may have presented a problem as well.

"She has a tax problem that came up in the vetting and a potential nanny issue," the soruce said. "And reporters are starting to look at her marriage more closely," the soruce continued, refusing to provide any specifics.

Gossip columns have reported for more than a year that Kennedy's marriage to Ed Schlossberg is essentially over, and the gossip site Gawker.com has reported rumors that she's been linked to New York Times publisher Arthur Sulzberger.

Kennedy denied any issue over her marriage in an interview with The Post last month. Aides to Kennedy and a Times spokesperson couldn't immediately be reached.

Tax problems? Seems a lot of Democrats have those nowadays.

No small irony she was the one who recommended Tim Geithner.