Just picture this scenario:
IRS Auditor: Sir, you didn't pay your taxes
Man: Neither did your boss
So how will the IRS have any credibility in collecting taxes if the Secretary of the Treasury hasn't even paid his?
Although it has been dismissed by some observers as a “hiccup” in an otherwise smooth confirmation process, treasury secretary-designate Timothy Geithner’s failure to pay self-employment taxes during the years he worked at the International Monetary Fund is causing some Republicans on Capitol Hill to ask serious questions about his actions. First among those questions is why he accepted payment from the IMF as restitution for taxes that he had not, in fact, paid.Documents released by the Senate Finance Committee strongly suggest that Geithner knew, or should have known, what he was doing when he did not pay self-employment taxes in 2001, 2002, 2003, and 2004. After his failure to pay was discovered, first by the IRS and later during the vetting process, Geithner paid the federal government a total of $42,702 in taxes and interest.
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.
Geithner's resume reads like a typical Democrat. Long on experience in the US bureaucracy, and virtually no experience in the real world:
Kissinger & Associates
U. S. Treasury Department, International Affairs Division
Attache at US Embassy in Tokyo
Deputy Assistant Secretary for International and Monetary and Financial Policy
Senior Deputy Assistant Secretary for International Affairs
Assistant Secretary for International Affairs
Under Secretary of the Treasury for International Affairs
Council on Foreign Relations, Senior Fellow in the International Economics Department
Director of Policy Development and Review Department, International Monetary Fund
Since 2003, President of the Federal Reserve Bank of New York, annual salary $398,200 (Those poor Manhattanites have to afford a decent apartment, you know)
And of course, Geithner has wholeheartedly endorsed the bailout of Wall Street.
I wouldn't trust this guy to run a hot dog stand for me. Why in the hell should he be Chancellor of the Exchequer?
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