WASHINGTON — Timothy Geithner didn’t pay Social Security and Medicare taxes for several years while he worked for the International Monetary Fund, and he employed an immigrant housekeeper who briefly lacked proper work papers. Those issues, and a series of other tax matters, scuttled a tentatively scheduled confirmation hearing Tuesday for Mr. Geithner as Treasury secretary, Senate Finance Committee aides said. The tax matters were instead the subject of a closed-door meeting between the nominee, currently president of the Federal Reserve Bank of New York, and members of the Senate Finance panel, in whose hands his confirmation lies.
Several senators said after the meeting that they intended to remain supporters of Mr. Geithner, who has playing a central role in tackling the financial crisis. Senate Finance Chairman Max Baucus (D., Mont.) called the issue serious, but not disqualifying. “I still support him,” said Sen. Orrin Hatch (R., Utah) as he emerged from the meeting. “He’s a very competent guy.”
Sen. Charles E. Grassley of Iowa, the committee’s senior Republican, didn’t give Mr. Geithner a pass. “It’s serious, and whether or not it’s disqualifying is to be determined,” Mr. Grassley said after the meeting. Obama aides said they didn’t think these issues would present a problem, given what they characterized as the minor nature of the infractions and the gravity of the role Mr. Geithner has been nominated to take.
The tax issue relates to Mr. Geithner’s work for the International Monetary Fund between 2001 and 2004. As an American citizen working for the IMF, Mr. Geithner was technically considered self-employed and was required to pay Social Security and Medicare taxes for himself as both an employer and an employee. In 2006, the IRS audited Mr. Geithner’s 2003 and 2004 taxes and concluded he owed taxes and interest totaling $17,230, according to documents released by the Senate Finance Committee. The IRS waived the related penalties.
I think the issue here is not the relatively small amount of taxes owed, around $34,000.00, but the fact that the future Secretary of the Treasury didn’t know he had to pay Social Security and Medicare while being self employed. Is anybody buying this? I took some bad advice from an accountant years ago when I was working outside the US for the same issue. You can bet they didn’t forgive any of it.
It’s not just a matter of a bad accountant. He was given the info by the IMF. Plus he was audited, and ordered to pay for 2003 and 2004, but he conveniently ‘forgot’ to correct the same mistakes for 2001 and 2002, which were not audited.
How about we pass a Geithner tax amnesty. It would fix the deficit problem pretty quickly.
#19 – Amo
>>Well, if you’re going for change, it’s not a
>>good idea to look for someone who’s been
>>part of the problem all his life!
Uh, it wasn’t a “problem” all his life. It only turned into a “problem” when Dumbya decided to make it his legacy to destroy America. The rest of his life, things were going pretty well.
As to the “scandal” – pffft. The woman had a valid green card when he hired her; it just expired, then she got it renewed. I drove for over a year with an expired drivers license. BFD. And as to the taxes, he paid up what he had to pay up.
Pretty thin gruel for the wingnuts to latch onto. Compare and contrast: Everyone is debating whether or not Dumbya’s henchmen and puppet masters are going to be charged with felony crimes; this guy’s accountant bollixed up his tax returns, then amended them to pay what he had to.
I report. You decide.
# 34 Mister Mustard said, “As to the “scandal” – pffft. The woman had a valid green card when he hired her; it just expired, then she got it renewed.”
Yeah, there is nothing wrong with this. Wrong target altogether.
Mike, I see why you’re called Lyin now. He didn’t forget anything, the IRS couldn’t compel him to pay for 01/02.
Would you pay money to the IRS if it wasn’t required? The answer is no, so STFU.
# 36 Olo Baggins of Bywater said, “Would you pay money to the IRS if it wasn’t required?”
Actually, the statute of limitations for collections is 10 years not 3.
Anyway, nice to see the Obamabots already excusing members of the new admin for violating federal law.
ROFL!
Republicans should focus on what Geithner has done with his penis. It’s worked pretty well with the Clinton’s.
In that way, you have much to talk about while the democrats tend to business. So, STFU or go find something about where Geithner’s penis has been.
Yes, the IRS couldn’t compel him to pay, as I said he wasn’t audited for those years. That doesn’t absolve him of responsibility. Hence the word ‘forgot’ in quotes. Yeah, most people wouldn’t do that either. Most people wouldn’t pay any taxes if they can get away with it. So I guess that makes it OK, then?
Like I said, we should have a Geithner tax amnesty.
Obama appointees being dropped left and right for various issues and some of you Obama-bots claim that these posts are the fault of disgruntled republicans… OMG!!!
Are we going to spend the next four years listening to that crapola?
Grow a pair you guys, and grow up…
#37, Cow Paddy, Ignorant Shit Talking Sociopath and retired Mall Rent-A-Cop, And Desk Arranger,
Actually, the statute of limitations for collections is 10 years not 3.
I just love your ignorance. The limit for auditing by the IRS is three years. If they can’t audit it then they can’t claim an underpayment. In this case Mr. Baggins is quite correct. And we all know you wouldn’t pay the IRS if you didn’t have to.
How can Obama dismiss the facts concerning Geithner. Obama should be looking out for the people who pay taxes not the folks who cheat on their taxes.