If the story first reported by the National Review’s Byron York is true, that President-elect Obama’s choice for Secretary of Treasury, Timothy Geithner, not only neglected to pay his taxes but was reimbursed for the taxes he didn’t pay, it seems hard to justify anybody’s continued support for his confirmation.
The IMF did not withhold state and federal income taxes or self-employment taxes — Social Security and Medicare — from its employees’ paychecks. But the IMF took great care to explain to those employees, in detail and frequently, what their tax responsibilities were. First, each employee was given the IMF Employee Tax Manual. Then, employees were given quarterly wage statements for the specific purpose of calculating taxes. Then, they were given year-end wage statements. And then, each IMF employee was required to file what was known as an Annual Tax Allowance Request. Geithner received all those documents.
The tax allowance has turned out to be a key part of the Geithner situation. This is how it worked. IMF employees were expected to pay their taxes out of their own money. But the IMF then gave them an extra allowance, known as a “gross-up,” to cover those tax payments. This was done in the Annual Tax Allowance Request, in which the employee filled out some basic information — marital status, dependent children, etc. — and the IMF then estimated the amount of taxes the employee would owe and gave the employee a corresponding allowance.
At the end of the tax allowance form were the words, “I hereby certify that all the information contained herein is true to the best of my knowledge and belief and that I will pay the taxes for which I have received tax allowance payments from the Fund.” Geithner signed the form. He accepted the allowance payment. He didn’t pay the tax. For several years in a row.
Michelle Malkin has a follow-up which seems to corroborate York’s interpretation, and the story has also been picked up by AOL. A Wall Street Journal opinion piece questions the wisdom of allowing a man so incompetent with his own taxes to oversee everybody else’s. While some may dismiss these allegations as mere partisan griping, the questions, in my mind, seem fair. The New York Times‘ assertion that Geithner’s “skill” may trump concerns because if he were a bank he would be considered “too big to fail,” just sounds silly:
In better economic times, Mr. Geithner’s confirmation to be President-elect Barack Obama’s Treasury secretary might be in danger after the disclosure this week that he had paid more than $48,000 in delinquent taxes and interest. But with the economy so fragile, many senators are loath to rattle financial markets by rejecting someone with Mr. Geithner’s qualifications and international respect. By late Wednesday, Republicans as well as Democrats were predicting he would survive the controversy and be confirmed next week.
So, with the economy in the tank, what we really need is a tax cheat in charge of the government’s money? The 350 million bailout dollars Obama is fighting tooth and nail for should be turned over to this guy to spend? U.S. News and World Report’s Michael Barrone, who had dinner with the Obamessiah, (who promised to Astroturf Geithner through) seems to think so, even though he admits that he can understand why some Senators might be a little miffed:
If I were a senator, I’d be inclined to vote for the nomination of Timothy Geithner to be treasury secretary, for reasons suggested by Nina Easton. By all accounts, he’s very able and knowledgeable, and he’s already been part of the nation’s lead economic team as chairman of the New York Fed. And it’s very important to have a treasury secretary in place these days. But I have to say that his failure to pay self-employment tax is troubling and could certainly provide a reasonable basis for a senator to vote no. I have income from which no taxes are deducted and I make sure to pay my taxes on it (today, by the way, is the deadline for filing your quarterly returns). I can’t imagine what he was thinking when he didn’t pay.
CQ Politics claims that the Senate’s wussy response to charges, some of the sort that caused immediate outrage derailing other appointees in the past, is due to the overall wussiness of the current Congress and the Obama transition teams’ tap dancing ability. And, according to a David Brooks/Gail Collins New York Times article, the Astroturfing of the MSM to promote the president-elect’s Obamacanacracy philosophy is working way beyond anybody’s wildest expectations. From David Brooks:
As for me, My O-Meter is in the ascendant. I was very high on him about a year ago, then I soured a bit last summer, but now we’re peaking again. Not because he was thoughtful enough to have dinner with some of us right-leaners this week, but rather because his transition has surpassed all my expectations.
edit
It’s true, I did break bread with Obama. It was amazing. He was carried into the house by cherubs, Bruce Springsteen and Oprah Winfrey spread rose pedals on the carpet where he was about to walk and he very considerately asked me what vintage of wine I wanted my water turned into.
It’s not as clear that the last quote was as snarky as you would expect a right-winger’s comments to be, since Brooks basically waxes poetic about how impressed and comfortable he is with Obama. While Obama’s smartest pick, Hillary Clinton for Secretary of State, rightfully sails through the confirmation process, and Tom Daschle’s appointment is quietly being held up in committee, look for the handiwork of Obama’s brain, political ventriloquist and Astro-gardener, David Asselfuck’s handiwork in smoothing the way for Geithner and Attorney General wannabe, Eric Holder, as well as in the media response to Obama’s stimulus plan and TARP request. Roland Burris will likely esacape any further Asslefuck media influence manipulation, now that he’s been sworn in, but the man who appointed him to the Senate, Rod Blagojevich, will continue to be Asslefucked into perdition.
And, (everybody) the wheels on the bus…
Timothy Geithner is a crook. I might buy his story of “mistake” in forgetting to pay his self-emplyee taxes, but accepting re-imbursements for several years for money that he didn’t pay in the first place? No way, Jose. This is beyond sleaze. But I’ll bet he gets away with it the way the whole Obama crowd got by with all the dirt they dished out during the election. Obama wants him, and it seems, like Lola, what Obama wants Obama gets.
EXcept – he didn’t get his choice in his vacated senate seat. Blago and Burris called their bluff (Reid, Durbin and Obama). I hope Harry Reid chokes on all the crow he is eating.
ea, Flip Wilson used to do a line that went, “a lie is just as good as the truth, if you can get somebody to believe it.” Now we know Flip was wrong, Obie proves lies are better.
My own view of why so many young voters were drawn to Obama was that he, indeed, was inspiring. He was living proof that you could slack, con, and cheat your way to the top. All that matters is winning, and rules only apply to other people.
I’ll let you decided what “young” is.