Serious Problem
The Democratic party powers that be and the media are downplaying the sudden problems of Timothy Geithner. The nominee for the position of Obama’s Treasury Secretary, is suddenly under some fire for failing to file taxes from 2001 to 2004 and for having an illegal worker on his payroll. But, these are not minor issues.
But Geithner’s tax troubles are more worrisome for his confirmation than Baucus lets on–and not just because the Internal Revenue Service is part of the Treasury Department.
According to the Senate committee’s report, Geithner “recently filed amended tax returns” for each tax year from 2001 through 2006. However, the report doesn’t specify when these returns were filed, leaving open the question about how long Geithner knew about the improprieties before he fixed them.
On Dec. 5, Obama’s transition team told Finance Committee staff that Geithner hadn’t paid social security or self-employment taxes on income received from the International Monetary Fund from 2001 to 2004, the report says. Three years ago, the IRS audited Geithner for tax years 2003 and 2004, which resulted in him paying back taxes and interest–but no penalties–totaling $16,732.
However, Geithner voluntarily amended his 2001 and 2002 returns only after Obama expressed interest in nominating him to the Treasury post. The total bill this time: $25,970.
Ok, let’s put aside the illegal worker for a moment. (Someone worked for him and his family that had legal status when hired which lapsed – Geithner was apparently aware that the status had changed, but the person involved eventually regained legal status.)
The tax issue is NOT minor, nor is it excusable. The IMF gives explicit directions to all employees on how to handle their taxes. There is also a very major point in all this.
Are you seriously expecting us to be confident in a Secretary of the Treasury who hasn’t the sense to hire an accountant or tax attorney? I am not a member of the “governing elite” and I am damn sure not rich, but I have had an accountant, attorney or both retained for more than 20 years. I have never, not once, failed to meet my tax obligations and have paid an expert to take care of that for me for two decades or better. It costs very little in the great scheme of things but has kept me completely out of trouble to date.
But we’re supposed to excuse someone with power over the treasury of the United States for not having the same ability? This is a serious problem. It is not a no never mind little problem, at all. Despite how the press and the Democrats are spinning it. I really don’t want a man in that office who is either too cheap to hire an expert when needed or too cocky about his own – already disprove – ability to handle it all himself.
This is two nominees with problems – that we know of. Makes you wonder what else has been swept under the rug by a fawning press corps, doesn’t it?
By tarpon, January 14, 2009 @ 6:52 pm
Not only that, but the IMF reimbursed him for the taxes he didn’t pay. This was blatant.
Like with tax cheat Rep Rangel, will he skate by …
By Anthony (Los Angeles), January 14, 2009 @ 8:11 pm
“This is two nominees with problems…”
More like five: Holder, Richardson (since withdrawn), Clinton (though she won’t be derailed), Emanuel, and now Geithner. (There may be one I’m forgetting) And the problem with Geithner is getting more serious, since he apparently was reimbursed by the IMF for those taxes he never paid.
I have to wonder if Obama is setting a record for the most investigated administration-in-waiting ever.
By lynndh, January 14, 2009 @ 8:11 pm
You know, I am really angry that there is no outcry against this guy now. Ok, he is a good guy, but he is not an everyday person. He should have known to pay the taxes. My wife made extra money working for a professor. We had to pay the taxes. And then I don’t think I had Turbo Tax, did it on my own. No Excuse. I am also very upset that Republicans are letting this pass. Never ever would have happened if McCain would have won. He would have been eating tire gravel by now.
By MikeM, January 15, 2009 @ 6:13 am
Geithner is to Treasurey as fox is to hen-house.
By martian, January 15, 2009 @ 12:58 pm
The fact that a person who has ongoing tax problems is about to be put in charge of the department that handles tax collection isn’t one of the biggest conflicts of interest that ever took place? I don’t think you could think up a bigger one. The fact that he didn’t pay his taxes until he came under consideration for the post also begs the question whether he would EVER have paid them if not nominated? Sounds like he coasted as long as he could and only paid them because he wanted the job. And then there were no penalties? Have you ever heard of anyone getting away with no penalties on back taxes? This whole story smells worse than three day old carp laying in the sun.
By sam, January 15, 2009 @ 1:20 pm
Hey Gaius, are you the same fellow that does this blog? http://declineandfallofwesterncivilization.blogspot.com/
Same name, same part of the country. Just wondering.
By Mockingbird, January 15, 2009 @ 3:48 pm
As a former tax preparer, I am offended.
As a taxpayer, I am outraged.
As an investor, I am purchasing more Florida state and municipal bonds.
By Gaius, January 15, 2009 @ 4:49 pm
Nope, not me.
By Mwalimu Daudi, January 15, 2009 @ 6:44 pm
Never ever would have happened if McCain would have won. He would have been eating tire gravel by now.
McCain would already be hearing talk of impeachment. And in the ultimate act of “bipartisanship” he would testify against himself.
At least with Obama in office there is at least a very slight chance that Democrats will get blamed when Democrats screw up.
By Terrence, January 15, 2009 @ 9:51 pm
What a hoot, Mwalimu Daudi! However, it is sad but true; McCain would indeed “reach across the aisle” to testify against himself, “bipartisan” that he is.
By Terrence, January 15, 2009 @ 9:55 pm
One further comment: Geithner will be Obama’s Treasury Secretary. The Senate will confirm him ASAP; to not confirm for mere “sloppy” tax filing would be to condemn themselves. Won’t happen. He is a shoo in.
By Thomas Jackson, January 15, 2009 @ 10:02 pm
I am sick and tired of the corruption of the dhimmies and the blindness of the media. Richardson, Hillary, Clinton, Holder, Emanual, Barack’s wife, all the corruption goes unheeded yet can you imagine what sound and fury would errupt if 10% could have been attributed to Palin or Joe the Plumber.
It makes you long for the level of honesty that defined the Slick Willie era. Looks like the US will witness what it means to live in a banana republic.