The Timothy Geithner story has driven right through strange and is heading full-tilt toward Ridiculousville. Byron York has a report today at National Review Online that boggles my mind. Geithner was asked last week about why he didn’t pay any withholding tax for four years. His answer, basically, was “I don’t know”.
What senators learned at the gathering was not only that Geithner had failed to pay self-employment taxes during his time at the International Monetary Fund. They learned that the IMF had repeatedly informed Geithner, as it had all its employees, of his obligation to pay that tax. They learned that Geithner signed documents saying he would pay the tax. And they learned that Geithner accepted IMF reimbursement for Social Security and Medicare taxes that he had not, in fact, paid. Geithner paid part of his obligation after a 2006 Internal Revenue Service audit, and the rest of it after he was nominated to become treasury secretary. In all, he paid $42,702 in back taxes and interest. In addition to his payment of the unpaid self-employment taxes, Geithner also had to pay $5,566 to cover other shortfalls in his tax payments, for a total of $48,268 in back taxes and interest.
Since their meeting with Geithner was the first time that most senators had heard of the problem, their questions were not terribly detailed; several of the queries were along the lines of “What were you thinking?” And Geithner’s answers were not terribly satisfying. “He can’t offer a specific reason,” says another source familiar with what went on at the meeting. “He doesn’t really have an answer. He just didn’t know.”
Geither left the IMF to head up the Federal Reserve Bank of New York, and was one of the principal people who could have done something to ameliorate the mortgage disaster but didn’t. He has been touted as a brilliant financial mind. We have to expect more from him than “I don’t know”.
Tags: Timothy Geithner
Isn’t Chris Dodd still sticking to his story that he “didn’t know” he got a way-below market rate on his home loans from Country Wide? Apparently “didn’t know” is an acceptable answer for Democrat voters.
Have you seen the ad for some department store (don’t remember which one) which has low prices after Christmas? (actually, they’ve used it before, so the prices may not be just seasonal)
Woman has multiple bags after just going through the checkout. She’s standing there looking at the receipt total, looks at the clerk and starts fast-walking out. Walks faster and faster, calling for husband to “Start the car! Start the car”…. Obvious impression is that the cost is so low that the clerk must have made a mistake and they better get out of the parking lot before same clerk realizes it.
I find the ad offensive. If you question the price when it’s high, then you should question the price when it’s low. There’s an assumption of basic dishonesty. And that’s what Dodd is guilty of. He may not have known – but if he knew what was “average” and knew that his mortgage was below “average”, he had an obligation to ask why – and obviously he didn’t. (and if he _didn’t_ know those basic facts, then do we _really_ want him in the Senate dealing with decisions of governance?)
Gives a whole new meaning to “Don’t ask don’t tell”, doesn’t it!