He only paid back taxes on the tax years that were open. He did not pay the taxes owed for tax years that were closed.
Now, as a tax CPA, I am mixed on this. Sure, most people probably don't know that 1099 income for services performed pays both halves of payroll taxes. However, most people I know who are in a position similar to one he was in know full well.
Regarding the overnight camp, I think he knew full well what he was doing. Most people do not know that camps can qualify for daycare expenses. IF someone does this, they should almost certainly know the rules for overnight camps.
Figure out what you're talking about before commenting. He paid all his federal income taxes. He paid all his state income taxes. He just didn't pay the social security taxes that normally are automatically deducted by your employer but weren't when he was working for an international organization.
23. I pay self-employment taxes, and I've always known there was no withholding.
Here's how you know--your check stub and the amount on the check are exactly the same. Also, you get a w-2 that shows the amount you made, but no amount withheld. It's not rocket science. I'd think someone qualified to be Sec of the Treasury can read a w-2.
7. Worse. He skippted payroll taxes - SS and Medicare -
for four years. He was audited for two of them and paid for these two. After being audited he should have gone back and check the other two. He did this only when he was being considered for the office of Treasury Secretary.
Still, what is more important right now? Being a saint or being able to hit the ground running to grab the economy before it disappears completely?
9. Geithner should fire his tax guy if he failed to note this error.
Of course if the tax guy told Geithner about the tax he owed and Geithner refused to pay, he has a problem. Why don't we just wait until all the facts are on the table. If he is innocent, he stays. If he is guilty, he is out.
22. That's because the wealthy all incorporate themselves and can defer paying taxes for decades.
The in May 2001, Paul O'Neill had the U.S. withdraw from the Organization of Economic Cooperation and Development, and offshore, tax-free accounts were completely left alone, paying NO taxes on their hundreds of millions.
18. "Oh my God!! I'm going to be named Treasury Secretary."
"I had better hurry up and pay the taxes I owe because of my 'honest mistake'"
I wonder how long those taxes would have gone unpaid had he not been named Treasury Secretary? It only became an honest mistake and owed taxes paid when the whole world found out about it and he was the choice of Obama to be Treasury Secretary.
19. chris matthews was trying to make it sound like the guy purposely didn't pay the taxes.
like he was a crook or something. none of us have any way of knowing that. it sounds like a mistake I would make. people do make mistakes. even really smart ones. It doesn't sound like it was an intentional avoidance of taxes. it sounds to me like a mistake. a stupid unnecessary mistake, but a mistake nonetheless. as far as all those congress folks sitting their excoriating the guy from their perches, I wonder how many of them have had problems with their taxes. or something else. none of them have clean hands.
If the guy was purposely avoiding paying taxes, I would say put his feet to the fire. and the panel has a right and a responsibility to make sure the guy isn't doing anything nefarious.
25. He probably didn't want to say he didn't have the $ to pay it
Edited on Wed Jan-21-09 12:26 PM by sfpcjock
...so he said it was a mistake. No biggie. A lot of people don't pay their taxes.
I was wondering why we need the current head of the NY Federal Reserve Bank to run the US Treasury? Does that make him more beholding to Wall Street than need be? Also, the name Geitner sounds kind of scary like check-kiter. Just sayin.
Personally, I would like to see a new SEC Chairmen put in ASAP!!! to replace Chris Cocks... er Cox. Cocks put back the naked short selling exception back in November as soon as he was able to do it. This allows hedge funds and so-called "investment banks" to make money as they slash the stock prices of banks by short-selling their stocks without pause.
Citigroup - down 80% B of A - down 70% Wells Fargo - down 60%
This causes distress and more bailouts which we are now seeing with B of A. There is no purpose for this rule other than to pile up more gold for hedge funds and greed heads.
Get rid of Cox !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
28. I listened to Morning Edition the day after this story broke
and Senator Grassley claimed that Geither had to sign a statement each year that he paid these taxes (the IMF paid him directly the amount they would normally withhold). Has he been asked about that yet? If so, what was his answer to that.
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