msmtax

Market Rallies on Geithner's Appointment: Why?

I am appalled that the failure to pay self-employment tax by Tim Geithner on his 2001-2004 tax returns would be explained away as an "honest mistake", and that the Obama administration would continue to support Mr. Geithner as the nominee for Treasury Secretary. Employees of international organizations are briefed on their tax responsibilities, including the requirement that US citizens pay self-employment tax. Employees of international organizations receive special tax treatment as the result of international treaties, and the employees are well-informed that they are being taxed under a different tax regime as a result of working for an international organization.
Mr. Geithner did not pay the self-employment taxes for 2001 through 2004, but of even greater concern is the fact that he did not correct 2001 and 2002 when his 2003 and 2004 returns were audited in 2006. At that point, he could certainly no longer feign ignorance. In fact, he did not correct his "honest mistake" until after his nomination to serve as Treasury Secretary, thus negating any possible argument that he was "not aware" that he owed self-employment taxes for 2001 and 2002 since he had already been audited on that exact point.
For an administration that prides itself on transparency and high moral and ethical standards, I am truly disappointed that Obama spokesman Robert Gibbs has come out with an official statement of the Obama administration indicating that this "honest mistake" does not rise to the level of disqualification. To the contrary, I think that the fact that he most assuredly was aware that he owed self-employment taxes during the course of his employment with the IMF, and absolutely knew from 2006 after his audit yet failed to correct the prior year returns, is more accurately referred to as cheating on his taxes rather than making an honest mistake. His failure to correct 2001 and 2002 after the audit of 2003 and 2004 reflects an attitude of arrogance and being above the law which is not acceptable.
Regardless of his experience and ability to serve as Treasury Secretary, I firmly believe that this failure to pay self-employment taxes, even after the audit when there was no doubt of his awareness of his legal obligation to do so, should eliminate him from consideration. To allow him to continue as the nominee under these circumstances is a slap in the face to all Americans who honestly report their income and pay the tax due.