Obama’s Treasury Nominee: Rewarded For Not Paying Taxes, Will Oversee Your Taxes

If you had a recent DUI, could you run the state police?  Even if you were the top state police officer?

If you failed to pay taxes, but got the money you would have paid the IRS and invested it, could you be Treasury Secretary and oversee the IRS?

Those are the questions in my mind.

Where is the accountability and why has the “Swallow Obama” Media largely ignored this caper?

Or, the other way to look at this is: The Treasury Secretary did it and was forgiven so how about me?  Amnesty for those that don’t pay taxes!

From the Wall Street Journal:
.
Timothy Geithner, whose nomination as Treasury secretary has been delayed by his past failure to pay taxes, was repeatedly advised in writing by the International Monetary Fund that he would be responsible for any Social Security and Medicare taxes he owed on income he earned at the IMF between 2001 and 2004.

Read the rest:
http://online.wsj.com/article/SB12319488483
3281695.html?mod=article-outset-box

 Sen. Sherrod Brown, D- Ohio, pauses in the elevator after arriving on Capitol
Treasury Secretary-designate Timothy Geithner .  Yup.  This will work.  For sure!

***************

By Michelle Malkin
A former IMF employee e-mailed me yesterday when news of Obama Treasury Secretary nominee Tim Geithner’s tax troubles came to light.

He wrote:

[H]aving worked at the World Bank/IMF I can tell you that as an American working there, they REIMBURSE you for the self-employment taxes! The idea is that American’s get paid “on par” with all the foreigners i.e. NO taxes are withheld. The compromise is that American’s pay the “self-employment” tax but you get a CHECK from the Bank/IMF to pay them with. When I worked there in the mid-70s the reimbursement was one-half of the total self-employment tax. So I think the standard rate was about 6% and normal self-employment was twice that. The reimbursement was about 9% and you filed a special form with the IRS as a US citizen working for an international organization. The bank gave you the check for the 9% at the end of the year. You did not owe anything above the 9%. I can’t remember all that well but I believe you also got a 1099 for the reimbursement. If you know anybody that works there or the UN or the OAS they can tell you how it works now.

Well, guess what? My reader’s story checks out. And now it has come to light that Geithner did in fact get reimbursements for taxes he didn’t pay.

Byron York has the story:

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.

According to an analysis released by the Senate Finance Committee, Geithner “wrote contemporaneous checks to the IRS and the State of Maryland for estimated [income] tax payments” that jibed exactly with his IMF statements. But he didn’t write checks for the self-employment tax allowance. Then, according to the committee analysis, “he filled out, signed and submitted an annual tax allowance request worksheet with the IMF that states, ‘I wish to apply for tax allowance of U.S. Federal and State income taxes and the difference between the “self-employed” and “employed” obligation of the U.S. Social Security tax which I will pay on my Fund income.”

In a conversation today with sources on Capitol Hill who are familiar with the situation, I asked, “Was Geithner made whole for tax payments that he didn’t make?”

“Yes,” one source answered. “He was getting the money. He was being paid a tax allowance to pay him for tax payments that he should have made but had not.”

Is this what Geithner supporter Sen. Orrin Hatch means by “very competent?”

***

Time for the Geithner withdrawal betting pool. My guess? Friday 6:45pm Eastern.

The wheels on the bus go thump, thump, thump…

***

http://michellemalkin.com/

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