"Hey, you know, that’s exactly what I said! ‘An innocent mistake,’ I said. ‘Jus’ one a dem crazy little things.’ Cigarettes, Timmy; don’t forget the cigarettes. In the big house, they’re like gold.”
Thursday, January 15, 2009
Nothing is Certain but Death and Taxes (Well, Maybe Taxes, Not So Much)
President-elect Obama’s nominee for Secretary of the Treasury, Timothy Geithner, failed to pay $34,000 in taxes. Obama characterized this as “an innocent mistake.”
"Hey, you know, that’s exactly what I said! ‘An innocent mistake,’ I said. ‘Jus’ one a dem crazy little things.’ Cigarettes, Timmy; don’t forget the cigarettes. In the big house, they’re like gold.”
"Hey, you know, that’s exactly what I said! ‘An innocent mistake,’ I said. ‘Jus’ one a dem crazy little things.’ Cigarettes, Timmy; don’t forget the cigarettes. In the big house, they’re like gold.”
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From NRO:
ReplyDeleteThe 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. ...
The tax allowance has turned out to be a key part of the Geithner situation. This is how it worked. IMF employees were expected to pay their taxes out of their own money. But the IMF then gave them an extra allowance, known as a "gross-up," to cover those tax payments. This was done in the Annual Tax Allowance Request, in which the employee filled out some basic information -- marital status, dependent children, etc. -- and the IMF then estimated the amount of taxes the employee would owe and gave the employee a corresponding allowance.
At the end of the tax allowance form were the words, "I hereby certify that all the information contained herein is true to the best of my knowledge and belief and that I will pay the taxes for which I have received tax allowance payments from the Fund." Geithner signed the form. He accepted the allowance payment. He didn't pay the tax. For several years in a row.
That wasn't an innocent mistake or an oversight.
Isn't it funny that all those "little mistakes" are happening to Dems?
Maybe Geithner flunked math in college; he certainly didn't pass ethics.
ReplyDeleteGeez people, it's not like he will be head of an agency that requires normal taxpayers to pay the correct tax or anything. Oh..wait.
ReplyDeleteThe real problem with this situation is not just that he didn't pay his taxes - although that's bad enough - but that he was effectively reimbursed by the IMF for taxes he didn't pay. Looks kinda...well, careless might be one word for it, but dishonest is more like what I was thinking.
ReplyDeleteYojimbo: Remember the old saying, buddy: those can't do, teach.
Sorry; I wasn't intentionally doing my Tonto impersonation.
ReplyDelete"Those who can't do, teach."
Maybe he wanted to hang onto the money because he has a deep seated belief that the government will just waste it.
ReplyDeleteOh wait....
Who was that masked Red Indian?
ReplyDeleteWho was that Red dude?
ReplyDeleteIt's a mystery kimosabe. Get'em up Scout!
Those who can do, those who can't teach unless there is a Fed Chairmanship available.
Just a simple question. Why isn't that tax allowance also taxable?
ReplyDeleteYou have a 25,000 obligation on 100,000 so they give you 25,000 extra. Why isn't his taxable income 125,000?
I haven't followed this closely so there might be an exemption or whatever so please excuse my ignorance in advance.
Yojimbo: That's a good question; too bad tax attorney Wronwright's not here to answer it. On the other hand, there's no telling how much he'd charge for giving us the answer, so maybe we're better off being in the dark.
ReplyDeleteWell, I was just wondering why this wouldn't be considered part of his compensation package.
ReplyDeleteThe IRC basically states that everything is income unless Congress says it ain't so I was just wondering if Congress had given some special dispensation for this. Just some musing from an aged Yojimbo.
Yeah, I had that question too, Yojimbo.
ReplyDeleteI figure the correct answer would be that if you or I tried to do the same thing, we'd be at Club Fed instead of Treasury Secretary.
Folks, on April 15, obey the law and pay your taxes.
ReplyDeleteThen stamp a SECOND envelope, put in a handwritten, unsigned note saying only I FORGOT, and mail it to the same IRS PO box.
TW: phootf: mexican food with a speech disorder...
Just make sure that the fake one is mailed to the balance due address.
ReplyDelete