Timothy Geithner continues his whining in the Senate today, stating ad nauseum that it was simply a mistake when he did not pay his self-employment taxes in 2001, 2002, 2003, and 2004. Any of you small business people who have to make those dreaded monthly or quarterly deposits to cover the 15.3% of wages for ourselves and our employees are OUTRAGED!
When audited in 2006 for his 2003 & 2004 returns, Mr. Geithner coughed up only the employment taxes due for those 2 years, obviously knowing he owed taxes for 2001 & 2002—only in the vetting process for Sec of Treasury did Mr. Geithner pay the 2001 & 2002 taxes. Reportedly Mr. Geithner was never asked to pay a penalty by the IRS and why the IRS did not use “tax evasion” to go back to his 2001 & 2002 returns can only be attributed to favoritism, which the average small business owner would never receive. The IMF gave Geithner the appropriate amount of money to send to the IRS to cover his Social Security/Medicare taxes and Geithner CHOSE to pocket the money, not mistakenly, but KNOWING he was committing tax fraud.
Please note also that when Geithner was audited by the IRS (or was it the Obama vetting people?), it was found that he took an illegal deduction for the expenses for one of his children’s overnight summer camps. One has to believe that if Mr. Geithner was ignorant of tax laws, his accountant probably advised him not to take this well-known illegal childcare deduction.
I am really upset with the Republican senators and many well-known conservatives giving Mr. Geithner a pass; that the knowing failure to pay taxes–we call this TAX FRAUD where I come from—-is to be forgiven because Geithner is the only man who can save our economy.
You small business people who fill out those 940 forms and pay those employment taxes should be contacting your senators and congressmen, especially if you were audited in the past and not treated so nicely by the IRS.
ADDENDUM: Here’s another critique of Mr. Geithner.
ADDENDUM 2: Just saw a clip of Geithner being questioned by Sen. Jon Kyl–Geithner prepared his taxes himself using Turbotax, though quickly added that Turbotax was not responsible for his error. An ethical accountant would never have allowed Geithner to avoid paying his self-employment taxes.