Geithner Lied
When I first read that Treasury Secretary nominee Timothy Geithner had failed to pay self-employment tax, it sounded pretty minor. He was employed by the International Monetary Fund, but the IMF doesn't pay Social Security taxes so IMF employees are supposed to pay self-employment tax (which is the equivalent of Social Security taxes for the self-employed) even though the employees aren't self-employed. That's sort of unnatural, and it's easy to see that someone might not know.
But according to an article by Byron White in the National Review, the IMF told Geithner he was required to pay income taxes and self-employment tax, and Geithner applied for (and received) money from the IMF to pay those taxes, signing a statement in which he certified that he would use that money to pay those taxes.
That's a big "whoops."
I'm not saying that Geithner shouldn't be confirmed as Secretary of the Treasury, but he's got a lot to be embarrassed about, and a lot to grovel for.
But according to an article by Byron White in the National Review, the IMF told Geithner he was required to pay income taxes and self-employment tax, and Geithner applied for (and received) money from the IMF to pay those taxes, signing a statement in which he certified that he would use that money to pay those taxes.
That's a big "whoops."
I'm not saying that Geithner shouldn't be confirmed as Secretary of the Treasury, but he's got a lot to be embarrassed about, and a lot to grovel for.
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The article in the National Review was by Byron York, not Byron White. Sorry about that.
(And we can't edit our own blog posts?)
January 15, 2009 9:35 AM | Reply | Permalink
Lied? The IMF told him? You mean actually sat him down and told him. Or handed him an employee handbook? I suggest you read this before you decide if he lied or not.
Geithner's Mistake on Tax Is Common, Experts Say
January 15, 2009 10:14 AM | Reply | Permalink
The bigger issue is he was audited in 2006 which caused him to have to pay back taxes on 2003 & 2004 of about $16,732. Obviously after you've been audited, you KNOW there was a problem. Why did he not pay the back taxes for the earlier years at that point if it was an "honest mistake"? He didn't pay 2001 & 2002 back taxes of $25,970 until Obama nominated him. He chose not to amend his returns until he had to go through the appointment process. I just find it despicable when people of such substantial means cheat to avoid paying their fair share of taxes whether they are Republicans or Democrats.
http://www.cnn.com/2009/POLITICS/01/14/transition.wrap/index.html
January 15, 2009 1:36 PM | Reply | Permalink
He also illegally claimed tax credits for overnight camps for his children for the years 2001, 2004 and 2005.
He employed a housekeeper who for 3 months lacked proper work papers.
And he also failed to pay Social Security and Medicare contributions for three domestic workers on his personal payroll.
The icing on the cake. The Republicans are defending him.
Go figure.
January 15, 2009 6:40 PM | Reply | Permalink