Treasury appointee explains tax errors

Timothy Geithner, President-elect Barack Obama’s pick to head the Treasury Department, had to climb Capitol Hill Tuesday to explain mistakes made in his own taxes over several years, the Washington Post reports.

“There was little evidence yesterday that Geithner’s errors, which included a related disclosure about a housekeeper who worked for him briefly without proper employment documentation, would derail what has been a smooth confirmation process for Geithner, who is the president of the Federal Reserve Bank of New York,” the Post said.

The report continued, “But the revelations could delay consideration of Geithner’s nomination. Late Tuesday, Republican Sens. Jim Bunning (Ky.) and Jon Kyl (Ariz.) blocked a request to proceed with his confirmation hearing Friday. Democratic lawmakers still hoped to confirm Geithner to the critical economic post before Inauguration Day.

“In his appearance yesterday, Geithner told the committee that he had failed to pay Social Security and Medicare taxes because he mistakenly believed that his employer at the time, the International Monetary Fund, was deducting those taxes from his paycheck.”

You can read more of the Post story here.

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Comments (2)

  1. Submitted by david granneman on 01/14/2009 - 04:12 pm.

    why is it that members of the party that loves to tax people seems to somehow forget to pay their own taxes.
    it seems they only need to pay their taxes when they get a govenment job.

  2. Submitted by Bernice Vetsch on 01/15/2009 - 09:17 am.

    A guest on MPR yesterday noted the IMF explains to all those who work for them in positions like Mr. Geithner held are told that they are considered independent contractors and are responsible for paying the Medicare withholding tax and both the employee and employer’s share of Social Security withholding taxes. It then REMINDS these employees every to pay these taxes.

    I find it difficult to believe that this was “an honest mistake” on Geithner’s part.

    And I feel strongly that anyone who worked for the institution that, with the World Bank, before it will grant loans, sets harsh conditions including the privatization of government services like health care and the restructuring of small-country economies to make them laissez faire “free” market states in order to get loans does not belong in the employ of a democratic (small d) government. The changes made were friendly to US corporations and distinctly unfriendly to the citizens of poor nations made yet poorer.

    (Summers also worked for these international robbers.)

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