Geithner Failed to Pay Taxes, Hired Housekeeper Without Proper Immigration Documents

**crimsonnation713** · 01-13-2009, 06:18 PM

.

President-elect Barack Obama's nominee for Treasury Secretary, Timothy Geithner, failed to pay Social Security and Medicare taxes for himself for four years and employed a housekeeper whose immigration documentation lapsed while in his employ.

Senate Finance Committee Chairman Max Baucus called a meeting with committee members to discuss the matter inside his office Tuesday.

Geithner disclosed to senators earlier in the day that he had failed to pay $34,000 in taxes from 2001 to 2004, a last-minute complication in an otherwise smooth path to confirmation.

Sources say Geithner also hired a housekeeper whose immigration papers expired during her employment in 2004 and 2005.

The woman, whose name has not been released, eventually obtained a green card to work legally in the U.S., and immigration authorities did not charge her with wrongdoing.

Senate Majority Leader Harry Reid told reporters after the revelations that he still believes Geithner is "extremely well-qualified" for the post.

"There was a few little hiccups, and that's basically what they are. I am not concerned at all," Reid said.

But an aide to finance committee member Sen. Chuck Grassley, R-Iowa, said the matter is "serious."

"Whether it's disqualifying is to be determined," the aide said.

Before becoming president of the Federal Reserve Bank of New York, Geithner worked for the International Monetary Fund from 2001 to 2003. He paid all of his income taxes on his IMF income, but made a "common mistake" on his tax returns with regard to self-employment taxes, Obama transition aides told reporters Tuesday.

Incoming White House press secretary Robert Gibbs defended Geithner, saying, "He's dedicated his career to our country and served with honor, intelligence and distinction. That service should not be tarnished by honest mistakes, which, upon learning of them, he quickly addressed."

"He made a common mistake on his taxes, and was unaware that his part-time housekeeper's work authorization expired for the last three months of her employment," Gibbs said.

"We hope that the Senate will confirm him with strong bipartisan support so that he can begin the important work of the country," he added.

Utah Republican Sen. Orrin Hatch, a member of the Senate Finance Committee, also defended Geithner.

"I still support him. I have no problem," Hatch told FOX News. "He's a very, very competent guy."

Baucus told reporters that Geithner's errors -- though "serious" -- do not disqualify him from becoming Treasury Secretary and that he hopes Geithner can be confirmed by Inauguration Day.

"These errors were not intentional; they were honest mistakes," Baucus said after he and other committee members met with Geithner.

Oxford_Town · 01-13-2009, 07:19 PM

And so it starts...

And being someone who has studied taxes, I can promise you that what Obama aides are calling a common mistake is a common mistake for someone not familiar with tax code or financial information. Common mistakes are not made by someone who is employed by the IMF, the financial equivalent to Harvard

D^3 · 01-13-2009, 07:53 PM

Quote:

Originally Posted by Oxford_Town

And so it starts...

And being someone who has studied taxes, I can promise you that what Obama aides are calling a common mistake is a common mistake for someone not familiar with tax code or financial information. Common mistakes are not made by someone who is employed by the IMF, the financial equivalent to Harvard

What's worse is he's nominated to be the Treasury secretary. Outstanding.

Remind me again what kind of people got us into this economy?

Williams-Brice · 01-13-2009, 08:04 PM

Quote:

Originally Posted by Oxford_Town

And so it starts...

And being someone who has studied taxes, I can promise you that what Obama aides are calling a common mistake is a common mistake for someone not familiar with tax code or financial information. Common mistakes are not made by someone who is employed by the IMF, the financial equivalent to Harvard

I would assume it's a common mistake that would put common men like you and me in prison, but for common government officials, this is something that can be weaseled out of.

01-13-2009, 08:09 PM		#6 (permalink)
	JerryBeeds Join Date: Jan 2005 Location: Lexington, SC Age: 29 Posts: 14,244 High Fived: 4,538 in 2,266 posts Given High Fives: 2,496 Rep Power: 10183
With the rubber stamp congress we have right now he'll sail through the confirmation process.
SEC Talk SEC Pickem' 2006/07 Co-Champion

01-13-2009, 09:20 PM		#7 (permalink)
	the Prodigy Join Date: Jun 2007 Location: Fayetteville, AR Age: 23 Posts: 6,625 High Fived: 528 in 319 posts Given High Fives: 434 Rep Power: 267
Yeah, this ranks right up there with starting a war under false pretenses and running the economy into the ground, all while ignoring the rights of American citizens.... I have two things to say... The first is a reminder of a great quote by E.E. Schattschneider, "Democracy is based on a profound insight into human nature, the realization that all... are sinful, all are imperfect, all are prejudiced, and none knows the whole truth.... Democracy is a political system for people who are not sure that they are right." The second is that this is an appointment that both Democrats and Republicans support. This is in no way a reflection on Barack Obama's ability to select competent individuals to help him run the country. Now, your first mistake is that you actually cite a FOX NEWS article... fair and balanced right? CNN gives us a little more insight into the situation. WASHINGTON (CNN) -- Members of the Senate Finance Committee met Tuesday with treasury secretary nominee Tim Geithner over concerns involving his personal taxes and the immigration status of a former housekeeper, transition officials said. Timothy Geithner has been nominated for the post of treasury secretary in the Obama administration. Timothy Geithner has been nominated for the post of treasury secretary in the Obama administration. The Geithners employed a housekeeper whose employment authorization document expired about three months before she stopped working for them in October 2005, according to a written statement from the Senate Finance Committee. Later, the housekeeper, who is married to a U.S. citizen, was granted a green card, transition officials said. The second concern involves Geithner's taxes while he worked for the International Monetary Fund (IMF). According to a statement released by the committee, Geithner failed to pay self-employment taxes while the IMF paid him from 2001 to 2004. In 2006, the Internal Revenue Service audited Geithner for tax years 2003 and 2004, and he paid $16,732 for the taxes and interest for those years, the statement said. After Obama nominated him for treasury secretary, Geithner voluntarily amended his taxes for 2001 and 2002, paying $25,970 for those taxes and interest, the committee said. The presidential transition team told Finance Committee staff about Geithner's taxes early last month, the committee said. As an international organization, the IMF does not withhold money from employees' paychecks to pay Social Security and Medicare. U.S. employees are required to pay them on their own. Robert Gibbs, the incoming White House spokesman, called Geithner's tax issue a "common mistake." "The president-elect chose Tim Geithner to be his treasury secretary because he's the right person to help lead our economic recovery during these challenging times," Gibbs said in a written statement. "He's dedicated his career to our country and served with honor, intelligence and distinction. That service should not be tarnished by honest mistakes, which, upon learning of them, he quickly addressed." The Finance Committee said it would continue to review Geithner's tax returns and other information ahead of a nomination hearing. "When errors or issues of concern are discovered, transparency is vital to allow members of the committee and the entire Senate to fully review and assess the relevant information before hearings and votes occur," the committee said. "I believe that these errors, although serious, do not rise to the level of disqualification. He is an extremely competent man," said committee Chairman Max Baucus, D-Montana. "The errors were, in my judgment, honest mistakes. He did not in any way intentionally make those mistakes." Sen. Charles Schumer, D-New York, also said the mistakes were "not at all disqualifying." "Tim came to the committee, admitted he had made some mistakes, and was very contrite," he said. "I continue to strongly support his nomination and given the tough economic conditions, hope we can confirm him as quickly as possible." Really the only one who has any reserves or problems with this matter is Chuck Grassley, the Senior Republican on the Finance committee, and his concerns aren't financial, so much as they are partisan to the Republican party. And recalcitrance to this appointment would be foolish, since there isn't really any, attempts at undermining the Obama administration are at the very least sophomoric attempts to sway public opinion.
Bustin' chops

01-13-2009, 09:28 PM		#8 (permalink)
	Oxford_Town I'm Nowhere As I Could Be Join Date: Nov 2008 Location: O_T Posts: 2,860 High Fived: 1,078 in 565 posts Given High Fives: 72 Rep Power: 9427
You can post all you want Prod, but it does not detract from the fact that Geithner was simply trying to steal from the government (common mistake my ...). Richardson has already had to step down because of some supposed wrong-doing in New Mexico. And to top it all off, the Governor of Illinois has been indicted and impeached for trying to sell Obama's seat, and some in Obama's team talked to the governor. I am not one to pick sides in this kind of battle, but I will say all of that combined does not equal the hope I was promised.

01-13-2009, 09:33 PM		#10 (permalink)
	OmahaBound Join Date: Jan 2005 Location: Columbia, SC Age: 28 Posts: 3,709 High Fived: 557 in 345 posts Given High Fives: 438 Rep Power: 837
The guy messes up his taxes, whether intentionally or not, and he wants to be Treasury Secretary. I'd say that's an issue worth bringing up. It doesn't appear to be a big deal since he got audited and paid interest on the taxes, but it is again a legitimate discussion. The housekeeper is an insignificant tidbit which means nothing though. In the end the tax failings are minor enough that there's really zero percent chance this would cost him his job even if the Congress was more evenly split....but still not a great way to start the confirmation hearing marathon these next couple weeks.
"I've a suggestion to keep you all occupied.....Learn to swim"

01-14-2009, 07:55 AM		#15 (permalink)
	bbqit Hotty Toddy Join Date: Dec 2004 Location: Mississippi Delta Age: 50 Posts: 4,956 High Fived: 1,228 in 765 posts Given High Fives: 872 Rep Power: 5738
Yep this is the guy who will be in charge of punishing those who didn't pay taxes. This is messed up.
Du-te la dracu 'LSU

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
For the proper place	bbqit	Ole Miss Sports	1	12-03-2008 03:06 PM
Finally, A Proper Avatar Restored	Crimson Kicker8	Water Fountain	0	01-01-2008 09:55 AM
No proper analysis necessary...	WallyGoat	NFL	5	01-08-2007 12:57 AM
New Documents Appear	supergenius	Alabama Sports	17	06-28-2005 09:25 PM
All the Documents for Gallion's Case against the SEC are out	Volnooga	SEC Football Talk	54	06-28-2005 09:19 AM

» Log in
User Name: Password: Remember Me? Not a member yet? Register Now!