Geithner’s confirmation hearing was delayed after the Senate Finance Committee discovered that the former New York Fed president failed to pay more than $34,000 in back taxes for 2001 to 2004. He’s since paid them, plus interest for the period.Yet Senate Republicans are heaping praise on Geithner saying he's the right man for the right job, Sectary of the Treasure. In charge of the IRS. Overseeing the tax code he made mistake after mistake on.
Tax experts blame Geithner’s error on the IMF’s atypical tax arrangement. Because it’s an international organization, it’s exempt from withholding employees’ payroll taxes.
U.S. employees get additional salary to cover the IMF’s share of their payroll taxes. They’re responsible for paying the tax, considered a “self-employment tax,” as part of their personal tax returns.
The real lesson of the Geithner flap, say tax experts: Get a good tax accountant.I hope the Senate confirmation hearings take that last line from the Political linked above to heart. They are about to put Geithner in charge of the rest of the TARP funds. 350 Billion dollars is a lot of money for a man who can't figure out his own taxes but still, somehow, be smart enough about economics to be head of the financial world.
Update: Vice President Elect thinks that Geithner isn't patriotic enough.