Geithner's Tax Problems 'Far More Egregious' Than Daschle's
By Susie Madrak Saturday Feb 07, 2009 4:00pm
Amy Goodman just interviewed award-winning investigative reporters Jim Steele and Don Barlett on Democracy Now!(I had the pleasure of interviewing them myself years ago - they're not just smart and ethical, but very nice people.) In the interview, they discuss why Timothy Geithner's tax problems were much bigger than Daschle's - except, of course, when the Senate wants to look the other way:
AMY GOODMAN: It’s good to have you both with us. Jim Steele, let’s begin with you. Why do you think Geithner’s problems were actually worse than Tom Daschle’s tax problems?
JAMES STEELE: Well, Daschle ended up having to pay far more in taxes than Geithner did, and neither one of these cases are forgivable or can be explained away easily. But the difference with Geithner is, I think almost every American knows that you have to pay Social Security and Medicare taxes. I think just the average person on the street who draws a paycheck knows that is taken out of their check. And that’s what’s so disturbing about Geithner’s. If these were avoidable mistakes, if these were simply things he overlooked, I think the question is, why weren’t those corrected at some point before President Obama had tapped him to be Treasury secretary?
This is the thing that’s actually disturbing about both of these cases. Both Geithner and Daschle went back and paid these taxes, but only after their names were dropped into that hopper, which suggested they were going to be cabinet officers. If these were truly under those categories of those kinds of mistakes, the question is, why wasn’t that done at some time in the past, especially in the case of Geithner, where he had been audited by the IRS for previous tax years and had paid some additional taxes at that time. It was only after he was suggested for the Treasury secretary and the vetting process began that he then remitted these additional taxes.
AMY GOODMAN: Don Barlett, explain further exactly what the taxes were that Tim Geithner paid and didn’t pay and what the relation was to his work at the IMF, the International Monetary Fund.
DONALD BARLETT: Well, as Jim indicated, these are the payroll taxes—Social Security, Medicare—that everyone has to pay. And, you know, the tax code is complex. Everybody knows that. It is easy to make a mistake.
But the reason we said that Geithner’s was far more egregious is this. He signed a piece of paper acknowledging that he owed both taxes while he was employed by the IMF. He then collected the money from IMF to pay the taxes. Now, most of us, you know, the payroll taxes are withheld. We don’t get reimbursed for those taxes. It comes out of our own pocket. But Mr. Geithner not only signed a paper acknowledging he owed taxes, he collected money to pay the taxes and then didn’t pay them and pocketed the money. This is why it was far more egregious for him and why—you know, the New York Times demanded that Tom Daschle withdraw, and he did. But the same demand was not put on Mr. Geithner.
And even more disturbing is the fact that only one Democratic member of the Senate Finance Committee voted against Mr. Geithner for this reason—for this reason. That was the Iowa Senator Tom Harkin, who said he just couldn’t support it. And Harkin was right, because the message this is sending to the public of large—the tax system already is as close to collapse as you’re going to get as a result of it not being enforced evenly. The double standard on tax law—as you indicated in the introduction, Jim and I have been writing about taxes for almost forty years. Our first series that won the Pulitzer Prize was on the unequal enforcement of the tax code. And that was back in the 1970s. And since then, it has exploded. And what is happening now in Washington just captures where it is now. Here you have the Senate Finance Committee approving this, and you have the Senate overwhelmingly approving it.
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This is a must see:
Bill Moyers with Jay Rosen and Glenn Greenwald.
Here.
Transcript here.
Also see Greenwalds essay on Daschle.
Geithner is a piece of shit.
Period.
in your thoughts on the IRS announcement shortly after the Merrill BoJ deal on section 382 changes.
Here is my last comment, here is one before that.
Here is another.
And yes, Geithner is a weasel.
Don't know the IRS announcement.
Sorry.
is that the IRS is a complex agency.
Mostly, it's a beauracry.
There are competent individuals and incompetent individuals.
It's rogue. It's an enemy of the American People.
It's like the CIA. Very little oversight.
I'll second that! This little weasel is nothing more than Paulson with hair. Where did Obama ever come up with this asswipe?
The last few decades have bred a sense of entitlement to anyone in a position of power or affluence. This may apply to the common folk but not to me or my friends is the mantra of the day.
We'll need something akin to the French Revolution to begin to set things right; good luck with that.
JAMES STEELE said, "
I think almost every American knows that you have to pay Social Security and Medicare taxes. I think just the average person on the street who draws a paycheck knows that is taken out of their check. And that’s what’s so disturbing about Geithner’s."
I say,
...so why werent S.S. and medicare taxes removed from Geithner's check?
(I was askin cuz I'm tired of paying those taxes myself and I'm sure I'll never recieve any social security anyway so If Geithner can do it...I may as well try it!
If we all just quit paying taxes the people in government won't have our money to steal like bush/chenny have?
They couldn't lock us all up!
...and wage illegal wars with it anyway. April 15th is coming soon! ...Freedom or Fascism?
http://www.youtube.com/watch?v=3ueEfRXZCVA
I think most politicians (like Geithner) know something that most Americans don't...and he would have continued his tax practices had he not been picked for the lucrative and powerful job of Sec. of the treasury...
Only if you want to be treasury secretary someday. Otherwise, your ass is going to gitmo!
He was working for the International Monetary Fund. It is not a U.S. entity. It didn't pay those taxes but the IMF frequently sent out reminders to employees that they themselves were responsible for reporting and paying them on their own. The IMF even raised the amount of pay to cover those cost.
Geither claims he just 'overlooked' paying them. That is bullshit and nobody with an I.Q. over 80 would believe it. But, Geither did it because he thought he could get away with it.
Why Obama wanted an obviously ethically challenged jerk for such an important role is beyond me. I keep lowering my expectations for Obama. I haven't given up on him yet, but really!.
I don't know how you can judge Geithner without knowing whether or why he challenged an IRS decision. But it's a pretty safe bet that Obama (or his transition team) would have told him 1) You cannot run the IRS while you have a challenge pending, and 2) You cannot claim in your confirmation hearings that the IRS is unfair, unreasonable, or wrong.
The problem is he took money from the IMF in order to pay those specific taxes (which acknowledges he owed them) then did not pay them.
Why the IMF would pay someone money specifically to cover their taxes I don't know. But if he had a challenge, he should have returned the money.
Daschle's taxes are a red herring. The real concern progressives have about him is that fact that he's made millions off the health care industry since he got run out of the Senate, and his wife was actively lobbying for those same companies WHILE Daschle lead the Senate. The man has been bought.
I was glad to see him lose. He sucked as a leader. But then the democrats promoted Harry. I hope he loses next year too! Then they can make Ben Nelson their majority leader.
Don't stop at Nelson.
The only way we could have avoided this is to have UNFAMILIAR faces picked for his cabinet positions.
Experience these days mean they have experience gaming the system, We are all familiar with these faces. Almost all of them have had brushes with the law or ethics before (remember they are senators, and governors like Richardson).
We need fresh blood in the government. Not big business and career politicians.
brother!
it was 1099 income, ie, a big hunk o' money handed to the guy for independent contractor (ie, not on the payroll) work.
the imf is an international organization and doesn't withhold ss and medicare and federal and state taxes. it's up to each contractor to report his own income and pay his own taxes.
and he signed a paper stating that he realized it.
he's a dick. he shouldn't have gotten the appointment. (i'm no fan of daschle, either.)
i've got to pay taxes, so should these f#cking millionaires, whether repubbblican or democrat.
These people are upper income earners and they have or should have professional tax accountants handling this stuff.
It's not like us toiling away in March on the kitchen table with a dull pencil and calculator.
The system is presently stacked with Repug sympathizers and the financial affairs of these nominees going to get the finetooth comb treatment, from taxes to the license for their dog.
What gives?
Or maybe, as you say, he's just a self centered dick.
I just got a 1099 in the mail today, $5666.67 for my severance pay when I lost my job a year ago. and if I don't pay that, I'm quite sure that bad things will happen to me. and I'm quite aware that I need to pay taxes on it. the guy is a laugh out loud liar.
You know why the republicans voted for him he is one of their own.
A criminal just like all the republicans.
But why did the dems vote for him?
Could it be that they have been in the senate long enough that they are criminal also?
about his taxes one way or the other. He never should have been the nominee after being in charge when Bear Stearns and then Lehman Bros. went under, plus the fact that he's basically a supply-sider with no real solutions for our current problems which don't involve patting his rich buddies on the back and saying "here's another boatload of free fucking taxpayer money - have fun with the hookers & blow".
"Us" and "them." We are the people who support them, the top 5%, the ones who have gamed the system in their favor and would rather destroy the country than give up power. The US is a kleptocracy, and we--us--are the victims.
Billions of our tax dollars given to the millionaires who have run Wall St. into the ground, wiping out people's homes and retirements in the process.
Our treasury looted in the cause of an illegal war of aggression. Our wages suppressed for decades in the interest of tax cuts for the rich and their corporations.
Our infrastructure and society allowed to decay for the same reasons.
Billionaire fraudsters not investigated by the SEC for reasons that even the new administration refuses to disclose until the crooked scheme collapses and thousands are wiped out.
Our jobs sent overseas in the interest of corporate profits.
Corporations allowed to use offshore banks to hide their profits and cheat on taxes.
A tax code that barely taxes corporations anyway.
Safety regulations gutted at the behest of the corporations that own "our representatives."
The rich and powerful participating in very illegal moneymaking schemes that are then covered up by their friends in government (ask Sibel Edmonds--please).
On and on it goes. Our "leaders" and their friends in big business have become parasites on us, on the US, and they are killing us.
So what do we do?
this was a great piece, "i screwed up." no kidding,, more than twice man
also vote against Geitner? I am sure that he did, but I am not sure it was in the full Senate vote or if Feingold sits on the Finance committee.
The thing they didn't admit in this piece though is that no matter what Geitner signed its evident that he wasn't the only one who worked at the IMF who had problems with taxes. Thats why they started sending those notices in the first place, and still year after year people who work for the IMF end up having to amend their taxes. I am by no means excusing Geitner nor Daschle for that matter but facts do matter.
It would be interesting to see just how many people there would really be in the DC "Club" if everyone's tax records were made public.
Talk about starting over!
but this statement
"I think almost every American knows that you have to pay Social Security and Medicare taxes."
I know lots of self-employed who don't pay into SS and don't expect to collect. There's no penalty, you simply don't qualify for disability or retirement stipend. Isn't this tax optional and separate from fed & state taxes?
The IMF (International Monetary Fund) has done more to destroy poor and developing countries than anything else. Just the opposite of their claimed mission.
Geithner has been (is) a part of that harm!
You can start here: http://tinyurl.com/b8xrnf
The elite will take care of themselves why attacking American citizens..
The elite police themselves and we see how this has turn out..
Giving of our tax money (even placing it on a credit card) is about as arrogant and abusive as it gets...
Americans disagree with this ,, yet they are telling us to shove it..
The republicans and the democrats have suceeding in dividing Americans so they can walk off with all the marbles..
Are we being feed a daily routine of good cop ,,, bad cop by these two parties...
While Americans are fighting each other the elected offices are selling out our citizens and country...
Democracy , bill of rights , constitution and laws are only tools used to keep the little people in check...
But as Bush show well stated and arrogantly put in place with the support of the republicans and "democrats",,
Our constitution is nothing but a G.D. piece of paper and he (others) can do as they d... well please...
Bush also stated and made it come true ,,,, If U.S. was a dictatorship he (others) could run it as they see fit,,,
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