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Geithner Must Go

By Larry Johnson on January 14, 2009 at 12:29 PM in Current Affairs

If Tim Geithner had been nominated as Energy Secretary I would not care. But when you are nominated to run the Department of Treasury and oversee the Internal Revenue Service and you “forget” to pay your taxes and employ an undocumented worker, there is no slack. Zero tolerance. If he is so goddamned smart then how in the world does he let something like this fall thru the cracks?

Geithner failed to pay self-employment taxes for money he earned from 2001 to 2004 while working for the International Monetary Fund, according to materials released by the committee Tuesday.

He paid some of the taxes in 2006, after an IRS audit discovered the discrepancy for taxes paid in 2003 and 2004. But it wasn’t until much later – days before Obama tapped him to head Treasury late last year – that Geithner paid back most of the taxes, incurred in 2001 and 2002. He did so after Obama’s transition team found that Geithner had made the same tax mistake his first two years at the IMF as the one the IRS found he made during his last two years there.

The panel’s report also noted that Geithner briefly employed a housekeeper in 2005 whose legal immigrant work status had lapsed.

Taken together, the disclosures cast a cloud over what otherwise had appeared to be a smooth road to confirmation for Geithner. Obama’s transition team told Finance Committee Chairman Max Baucus, D-Mont., and senior Republican Charles E. Grassley of Iowa of the tax problems in early December, but most rank-and-file members of the panel only learned of them recently.

Are the Democrats posed to turn ethics and competence into the Special Olympics?

This is unacceptable people. Our nation faces an economic meltdown and we want to put a guy in charge who was told about the back taxes and forgot? Sorry. This is bullshit and the man ought to have the decency to step down before the Republicans legitimately make mince meat out of this clown.

  • http://baddemocrat08.wordpress.com obamastolemyboyfriend

    FOX is reporting that this will be looked at, but even Republicans say he will still be confirmed! I guess it all depends on who you are!

    I agree this should be a big deal!

  • http://baddemocrat08.wordpress.com obamastolemyboyfriend

    FOX is now reporting that Carol Browner, the Climate Change Czar (WTF?) was a member of a socialist group!

    President Elect Weekly Scandal, if not Daily Scandal or Hourly Scandal!

    • rolling_thunder

      Yes and Obama is a longtime member of that group too. That’s been known for sometime. The socialist party allows dual membership with another party. Obama joined Dem party just before he ran for State Senate for all intense purposes but he’s a bona fide Socialist and a Dem only in name. google New Democrat Party and you’ll see there are soicialist members in it.

    • RebelCarol

      was a member of a socialist group!

      I understand she still is.

      • http://baddemocrat08.wordpress.com obamastolemyboyfriend

        FOX said she quit the group in June.

  • typical.white.person

    Link:

    Timothy Geithner’s father, Peter F. Geithner, is the director of the Asia program at the Ford Foundation in New York. During the early 1980s, Peter Geithner oversaw the Ford Foundation’s microfinance programs in Indonesia being developed by Ann Dunham-Soetoro, mother of President-elect Barack Obama, and they met in person at least once.

    • http://baddemocrat08.wordpress.com obamastolemyboyfriend

      Holy Crap!

      • kat in your hat

        whUt

        • Sandi78

          Why didn’t Obama ever mention his mother’s involvement in micro-finnce during the a. primaries and b. general election? Silly question, I suppose, as he really didn’t mention his white relatives at all other than the infamous remark about his grandmother. Do they get to go to the inauguration?

          • truthorconsequences

            Would you want someone–anyone at your party that knew all your dirty little secrets? LOL!

          • rolling_thunder

            YES! They will all be at his inauguration and I wonder if Odinga is coming with them. It’s going to be a circus with all the Kenyan relatives sitting in the front row.

            Stanley Ann was into finance just like his white granny was. He never wanted for anything and he lied to the people saying he comes from humble beginnings. NOT!

            • Kal

              yeah, except this — microfinance is unfortunately harder for women to use successfully than men, so BO’s tradition of not giving a hoot about women appears to be an entrenched family tradition — getting credit for helping women while really putting knives in their backs

            • http://ezinearticles.com/?Three-Basic-Parenting-Styles&id=744499 Northwest rain

              Maybe that creep (Cousin Ordinga) will organize a church burning while he is here? Of course he didn’t do the actual church burning — but it was done in his name.

              Gee and Cousin Ordinga wants to make Kenya a haven for terrorists?

              —————

              BACK to the subject of the article:

              Andy Martin has a few words about Geithner’s selection and the SEXISM of Obama.

              Andy reminds us of how a WOMAN — Zoe Baird — was run out of DC for similar tax problems.

              However, since Geithner, has the “experience” organ (penis) — he will undoubtedly get a pass for his non payment of taxes.

              Obama is a sexist pig.

              It turns out that MS magazine is pissed at those of us who are disgusted with their current cover of Ms magazine — (showing Obama — as a “feminist”). Shall we celebrate MS mags quick trip to bankruptcy?

              • I’m a Linda too

                I was just going to post about this too.

                Andy Martin held a press conf today on the subject

                http://contrariancommentary.blogspot.com/

              • RebelCarol

                Shall we celebrate MS mags quick trip to bankruptcy?

                I’m for celebrating. I’ve been pissed at NOW and Ms. Mag. since NOW endorsed BO.

          • Welcome Back Carteh

            He mentioned she was involved in micro-financing, though that’s not actually what it was, since the Bangladeshi economist who came up with the idea won a Nobel Prize in 2006. That’s just typical Obama BS. Sounds like she pushed cut-throat loans on developing nations, possibly working for Bechtel, Halliburton, etc. Obama’s parents were probably both intelligence recruits.

    • Annie Oakley

      Small world.

    • Mercedes

      Veeeeerrry interesting.

    • oowawa

      Timothy Geithner’s father, Peter F. Geithner, is the director of the Asia program at the Ford Foundation in New York. During the early 1980s, Peter Geithner oversaw the Ford Foundation’s microfinance programs in Indonesia being developed by Ann Dunham-Soetoro, mother of President-elect Barack Obama, and they met in person at least once.

      I wonder if Geithner forgot to mention this connection between his father and O’s mother on his 60 page exhaustive employment application. Barack is going to be so pleasantly surprised when he finds out about the coincidence! Sheer serendipity!

    • Obama: Dubya II – Electric Boogaloo

      “That’s not the Peter Geithner that I knew….”

  • kat in your hat

    Take ACTION Here:

    http://pumapac.org/2009/01/14/leave-now-and-never-come-back/

    (Great post Larry!! You are right! Unbelievable.)

  • Tricia Spiegel

    How can the media (well some cable news) be saying this is a “little bump?” Do they think we are stupid? (Well, yeah, they do…)

    I know what April 15th means as does everyone I know.

    What happened to to the intense vetting Obama said he would do first? Words, not actual competence.

    • sowsear

      The team did vet him and had him pay up what the IRS hadn’t already caught (2001-2002).

      • HC

        Well great then I guess its all good.

        This Obama is just an amazing guy. All this and he can help with back taxes too.

      • snosandy

        I think the IRS knew about 2001-2002, but the statute of limitations ran out, so he could have “got away” with not paying those. What a good guy to pay more than he had to……..

  • Peggy Sue

    What disturbs me is that this is the guy who will be in charge of staggering amounts of money and yet he fails to pay payroll taxes [after 4 notices, I understand].

    God is in the details, as they say. And if you overlook your own details, what does that say? The housekeeper business is small in comparison. But wouldn’t you think these guys would absolutely make sure there were no “loose ends” after all the nanny-gates of the past?

    The tie between Geithner’s father and Ann Dunham [posted by typical white person] is really weird. I hadn’t read that before. I’m guessing this will be a Presidency of strange coincidences and ever-narrowing degrees of separation.

    “Are the Democrats posed to turn ethics and competence into the Special Olympics?”

    That’s a great line, Larry. It makes me queasy because I think it’s all too true.

    • athy

      Peggy Sue-
      I agree.

      perhaps this interview with Webster Tarpley deserves a second read?

      http://www.deepjournal.com/p/7/a/en/1497.html

      I was astonished when I first read this interview however I did not ignore it. I was very skeptical but I kept an open mind. I told myself that only time will tell if what Mr Tarpley is saying is ‘the real deal’.

      Many dots are beginning to connect for me based upon Barack Obama’s recent decisions, choices, and other ACTIONS.

      Perhaps the nation as a whole should start paying more attention to what Mr Tarpley has been trying desperately to inform us of.

      The men behind Obama: interview with Webster Tarpley

      By Daan de Wit

      EXCERPT:

      “Especially in politics it is of the utmost importance to try to look behind the facade: who makes up the team of the presidential candidate? The future president of the United States of America is for a large part dependent on and being fed by his team of advisors and future cabinet members. Webster Tarpley wrote a book on the men and women behind presidential hopeful Barack Obama. He argues that there is more to Obama than his charismatic appearance and that some of his advisors pose a danger to the US and the world in case Obama might be elected to become the next US president. Whether Tarpleys view is correct for now is a matter of opinion and remains to be seen, but for the public debate it is relevant to take note of his facts and arguments. Therefor DeepJournal interviewed Webster Tarpley on the topic of his recently published book Obama, The Postmodern Coup,The Making of a Manchurian Candidate.”

      P.S Excellent post Larry- and congratulations to NQ for Weblog award.It is well-deserved.

      • Peggy Sue

        Wow, athy. That interview/link was one depressing read.

        I’ve picked up bits and pieces of this take over the course of the election season and knew I could/would never vote for Obama. In fact, I’ve thought from the start that Obama would = Carter on steroids. I unfortunately lived through the Carter years. Not pretty!

        But this material starts to join the dots–the who, the why and the chilling things “yet to come.”

        I am truly beginning to feel like cannon fodder.

  • http://www.bestnewspolitics.com Jamie Holts

    Hello.

    I like your site and wanted to know if you would be interested in exchanging blogroll links.

    Thanks in advance

    • rolling_thunder

      No! No one is interested in exchanging links. Please make a note of this.

  • Peggy Sue

    Oh no! Not Jamie spam-bot again. Give it a rest.

    • Idiocracy08

      He did so after Obama’s transition team found that Geithner had made the same tax mistake his first two years at the IMF as the one the IRS found he made during his last two years there.

      And WTF does that say about Obama’s transition team? I already knew they were worthless, but to find that out and not think it’s a big deal???

    • oowawa

      He didn’t hear you, Peggy Sue. He’s not human, and he doesn’t care what you say. Where is the Almighty Spam Filter when we need Him?

  • HARP

    Obots……Welcome to the “change” in Washington. What a lying sack of shit Obama is.

    • truthorconsequences

      If it looks like a skunk, smells like a skunk, and acts like a skunk, would you believe it is a skunk? PHEWEEEE!!! ;)

  • Mary

    Excellent post today Larry. Remember how the Obots went off on Joe the Plumber because he supposedly owed some back taxes, and they used this to discredit him just for asking a question? Geithner wants to be Secretary of the Treasury, and he knowingly did not pay back taxes until he had to, to be selected to run. And this “mistake” can just be overlooked. That’s the Obots for you!

  • Texas Playwright

    A good number, like millions, of Americans don’t make in a year what this guy owes in taxes. bho the fraud isn’t held accountable for millions in highly questionable camapaign donations and HE gets to be sqatter select? So this Geithner guy has trouble with money and “will probably” be confirmed? Birds of a feather…

  • HARP

    Tim Geithner wanted to make sure he was part of the 95% of Americans that gets a tax cut.

  • barry bums a ciggie

    This is how people become big time cheats…they “forget” to pay money owed…it goes undetected, they get away with it. Then they raise the bar and get away with something a little more…and a little more and a little more.

    This guy needs to get the F*ck out. He is supposed to run our treasury? What insane world do we live in? Only in Obamaland.

    • oowawa

      Do you remember the “I forgot” routine that Steve Martin used to do? It covers general instructions on how to get out of trouble. One of the examples he uses:

      If the IRS asks you,
      “Steve, Why didn’t you pay your taxes?”,
      you simply say “I forgot.”

      Works every time.
      A joke, right?

  • Terry from NH

    If this guy simply “forgot” to pay his taxes how can we be assured he will “remember” what is necessary to guide us through this economic crisis?

    How can anyone find him credible?

    Where is the outrage?

    We are in for it big time, I’m afraid!

    • truthorconsequences

      Seems the dems once pushed for and got a conviction on the Vice President of the USA (Spiro Agnew), in about 1973, for income tax evasion. He got three years probation. But now it’s okay if a dem evades paying taxes. How things have changed in these United? States of America.

  • truthorconsequences

    Wasn’t Al Capone finally locked up due to tax evasion? Maybe Obama & Co., (being from Chicago too), have warm feelings for tax cheats. After-all they are just one big thuggish family that stick together.

  • sunoverla

    That wall street insider Geithner must go!

    His arrogance in thinking he could get away with not paying his taxes is a prime example of the wall street malfeasance that has caused our economic collapse.

    By letting him stay, TPTB admit there is one set of rules for the DC/NYC robber barons of the 21st Century and another for main street America.

    This is no “honest mistake” as Senator Baucus states. What? The guy doesn’t know that April 15th comes around every year?

    Pathetic!

    To restore Americans faith in the political/legal/financial systems of our country, get rid of him!

    Enough is enough!!

    Where’s the change?!

    • socalannie

      Hear Hear!

  • Park Slope Pubby

    “Forgot”? This is out and out tax cheating. Of course he knew what he was doing. One set of rules for the elite, one for the rest of us. Only little people pay taxes. This is just disgusting, and what will be even more disgusting is if the Senate approves him. They are all probably tax cheaters also.

  • sunoverla

    and he “forgot” four years in a row!!?

    LOOL!

    I guess this is another “grab your ankles” day!

  • NYC

    This is unacceptable people. Our nation faces an economic meltdown and we want to put a guy in charge who was told about the back taxes and forgot? Sorry. This is bullshit and the man ought to have the decency to step down before the Republicans legitimately make mince meat out of this clown.

    ButTom Raum from The Associated Press says:

    Geithner may have one thing going for him: The public may be more far more concerned about the economy at this point than over the would-be treasury secretary’s past mistakes.

    The public? He means the ‘Obama audience’ I guess, because I, like everybody else on this forum, am very concerned about this nomination! This feels like a nightmare!

    • AF catfish

      We’re concerned about the economy because the people at the top don’t think rules and laws apply to them!

      “Too big to fail” – this is it! Too famous to fail! Too prestigious to fail! It’s not illegal if a Harvard grad does it!

      • jbjd

        That sounds like the beginning of another great post. “It’s not illegal if…”

  • untilthelastdogdies

    Soooooo… We are to believe that for a period totaling four years the man neglected to pay Social Security and MediCare taxes simply because he was “self-employed”???

    The U.S. Government was made whole instantaneously after his appointment???

    Maybe I’ll notify my employer of my decision to forego my entitlement taxes for the next few years and see how that goes over.

  • AF catfish

    Obama needs to restore trust in government, Palen understood that in Alaska. This is not the way to do it.

  • interested party

    Just a few weeks ago I was reading how brilliant Obama’s transition team was in quickly filling cabinet positions. First Richardson came down the pike, now this. Seems to be maybe they were looking for bumps in the wrong places or just plain bad judgment trickling down from the top.

    • http://baddemocrat08.wordpress.com obamastolemyboyfriend

      Yes, Judgement? Wasn’t Obama running on his great judgement?

      Right!

  • tek

    The media said this Geithner was a maverick. Now we know what they meant, he doesn’t think he has to pay taxes. I really don’t like to see a guy confirmed as Treasury Secretary who is guilty of this kind of omission. The servant came into the country legally, then overstayed her visa. Like so many of them.

  • Evolve and Learn

    Forget the tax stuff. The guy use to work for the IMF. Have you read “confessions of an economic hitman”? Or go to amazon search for the book and then search in the book using IMF.

    Evolve and learn and connect the dots whatever shape they form.

  • pieces of you

    Oh, man I agree, he should NEVER EVER have been nominated.

    Same for Summers, and the rest who helped engineer this economic fiasco.

    They can’t solve the problem…

  • Mandelay

    Larry, I love what you do for your fellow citizens here at this site (and all the stuff you do in business to keep people safe) and I agree with all you’ve written here except the first sentence. This man should not be invited to participate in the cabinet. He has no respect for the law. Apparently neither does the president-elect who nominated him. Sad days. Thanks again for making NQ such a great site … along with Susan and all “the gang.”

    • pieces of you

      The WAPO is reporting his confirmation hearing has been delayed.

      I really hope he withdraws his nomination.

      Maybe there is more dirt?

  • Mercedes

    I agree that Geithner has no business being Secretary of the Treasury. But his deficiencies seem about par for the course for Obama and many of his supporters. Caroline Kennedy wants to be Senator from New York, but she doesn’t vote. Obama wants to be POTUS, but he sees no need for the public to know anything more about him than he chooses to tell them and it really is a big question mark whether he is qualified under the Constitution to be President. But then, I think the Constitution has been trashed now too. I dare say this whole scene should be sending a clear message to anyone paying the slightest bit of attention. Geithner will be approved by the Senate. The so-called two party system and the muckraking media are a couple of the biggest jokes around.

  • ame

    Incidents like this one is unacceptable to me; it’s one of the reasons I do not hold allegiance to either party; there’s too much acceptance coming from both sides of the aisle when it comes to holding politicians and government accountable for wrong doing. BTW, my niece has been paying back the IRS for years due to the fact that one year, she claimed her kid as a dependent and so did her ex. She’s piss poor too.

  • cathnealon

    ame
    It’s people like your niece that should be up in arms about this Geithner. He had the money to pay up and just ‘forgot.’ He thought he could get away with it, a common tax evader has no business running the treasury and the IRS. If they let this guy through it proves that they’re scared to death that BO will have a fit and start the propaganda about Republicans interfering with his choices because they’re ‘racist.’

  • I’m a Linda too

    So true, but this clown was an unwise choice to begin with. What change? Same ol Same ol. Now this comes out on top of his other baggage? TEAM OBAMA….NOT smart…..SHOT!

  • Portia Elizabeth

    This would all be laughable if it weren’t so scary. If it’s acceptable by our nation’s leaders to have a tax evader in charge of -tada!- the Treasury, then only God knows what else is in the works. How can Congress be so corrupt as to be complicit in this crime against America? Because that’s what it is. Are they morally bankrupt as well?

    All I can say is if he gets confirmed as Sec. of the Treasury, then I hope they’ll be as understanding when I mistakenly don’t pay taxes for at least the next four years.

  • graywolf

    One set of (non) standards for the demcong and their media shills.
    Another set of standards for the rest of us.
    What else is new?

  • CG

    Come on everyone. Forgetting to pay the IRS and having an illegal immigrant nanny are a drop in the bucket, if we look honestly at Obama’s pay-to-play past, and “knuckleheaded” choices (is that the word Obama has used when he crossed ethical lines?). I ask you, in terms of degrees of unethical behavior where does Geithner rank next to Obama?

  • rolling_thunder

    Evidence has emerged that Obama belonged to a socialist political party that sought to elect members to public office with the aim of moving the Democratic Party far leftward to ultimately form a new political party with a socialist agenda. :shock:

    http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=78945

  • rolling_thunder

    Additionally, The New Party stated it also sought “the democratization of our banking and financial system – including popular election of those charged with public stewardship of our banking system, worker-owner control over their pension assets, community-controlled alternative financial institutions.”

    Many of the New Party’s founding members were Democratic Socialists for America leaders and members of Committees of Correspondence, a breakaway of the Communist Party USA. Obama attended several DSA events and meetings.

  • KmX

    Funny how the media knew Joe The Plumber owed $1000 in taxes in less than 24hrs but never knew Michael G little secret. I wonder if Joe Biden still thinks it’s patriotic to pay taxes? The Tresuary secreatry should withdraw his name.

    Michael major problem though is that he was the person in charge of New York Fed, yet he could not regulate CitiGroup. CitiGroup collpase occured under his watch. Where was the oversight?

    I am tired of the media being apolgist to the educated elite when they screw up.

  • standard

    Larry is right on target. Send this wheeler dealer on his way.

  • http://msplaceddemocrat.com Navyvet

    Why wasn’t Geithner’s paycheck garnished? Is there a lean on his home? Why weren’t his bank accounts raided? Why were his penalties and interest waived by the IRS?

    Another note: Accountants and tax software do not miss self employment taxes. They are taxed at a higher rate as well. So you see it isn’t a mistake it is gross negligence and unreported income. (The reason he wasn’t charged with tax invasion because the IRS is supposed to be a kinder and gentler organization….I kill me…lol!)

    If it were you and I all of the above would have happened to us. Regular Joe and Josephine Taxpayer have to complete a mountain of paperwork to get penalties and interest removed….and every receipt must be accounted for!

    The elite and government workers like Geithner get all the breaks.

    I am not kidding about all of the above either. I am a tax preparer!

  • Pingback: Ms Placed Democrat » Was Geithner’s Paycheck Garnished? If It Was Me Or You, Ours Would Be!

  • prose

    Forget the backtaxes, the real problem with the Geithner appointment is that he was the one who allowed the Lehmann Brothers to collapse, sending the world into a recession and getting Obama back up in the polls again. I was kinda sceptical of my own theory, but now that this new relationship emerges and that the both these guys had roots way back in Indonesia, I am certain now. Not that they will have the balls to fight, but Republicans should definitely probe into Geithner’s decision to sink Lehmann at a very convenient time.