REPORTS
A TAXING ISSUE FOR THE TREASURY NOMINEE
January 15, 2009 10:53 AM
Tax season arrived in the U.S. with some unexpected and embarrassing surprises for President-elect Obama’s economic transition team. Timothy Geithner, Obama nominee for Treasury Secretary, is facing questions from the media on failures to pay almost $34,00 in income taxes. The news came after the Wall Street Journal broke the story. We’re tracking perspectives on Geithner from the New York Times, Politico.com, and the Wall Street Journal.
POLITICO
On Politico.com, the conversation on Geither got a bit more sarcastic in tone.
In a commentary titled "What If I Didn’t Pay Taxes?" Politico noted that Geithner also failed to fix dependent child credits for overnight camps even after being informed by his accountant that they weren’t allowed.
The report said: “Can I get this deal? Can I ignore my accountant? He is always telling me that my trips to Vegas are not allowable under “necessary mental health expenses” and, fool that I am, I keep listening to him.
In a commentary titled "What If I Didn’t Pay Taxes?" Politico noted that Geithner also failed to fix dependent child credits for overnight camps even after being informed by his accountant that they weren’t allowed.
The report said: “Can I get this deal? Can I ignore my accountant? He is always telling me that my trips to Vegas are not allowable under “necessary mental health expenses” and, fool that I am, I keep listening to him.
The New York Times
Geithner had failed to pay self-employment taxes from 2001 to 2004 and claimed he made an honest mistake.
The New York Times followed the story by injecting a quote from President-Elect Obama who said the mistake was embarrassing for Geithner but that he had corrected it.
The Times said:
“...With the economy so fragile, many senators are loath to rattle financial markets by rejecting someone with Mr. Geithner’s qualifications and international respect.”
The New York Times followed the story by injecting a quote from President-Elect Obama who said the mistake was embarrassing for Geithner but that he had corrected it.
The Times said:
“...With the economy so fragile, many senators are loath to rattle financial markets by rejecting someone with Mr. Geithner’s qualifications and international respect.”
The Wall Street Journal
The Wall Street Journal labeled Geither as a living embodiment of the tax gap, difference between taxes due and the money the IRS actually collects.
They stated that according to the IRS more than 90% of that gap is a result of honest mistakes, confusions on tax law and failures to report income from odd jobs and even eBay sales.
The Journal goes on to advocate amnesty for other American tax-payers who also forgot to pay taxes:
“If forgiveness is to be the order of the day for the man who may soon be responsible for the IRS, American taxpayers deserve a similar reprieve.”
They stated that according to the IRS more than 90% of that gap is a result of honest mistakes, confusions on tax law and failures to report income from odd jobs and even eBay sales.
The Journal goes on to advocate amnesty for other American tax-payers who also forgot to pay taxes:
“If forgiveness is to be the order of the day for the man who may soon be responsible for the IRS, American taxpayers deserve a similar reprieve.”
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