Archive for the ‘IRS’ Category

A Democrat Did Something Good Today: John Lewis Says 13 Companies Took Bailout Money, Owe Taxes

March 19, 2009

Another nail in Geithner’s coffin.

Good going John Lewis!



At least 13 firms receiving billions of dollars in bailout money owe a total of more than $220 million in unpaid federal taxes, a key lawmaker said Thursday.

Rep. John Lewis, D-Ga., chairman of a House subcommittee overseeing the federal bailout, said two firms owe more than $100 million apiece.

“This is shameful. It is a disgrace,” said Lewis. “We are going to get to the bottom of what is going on here.”

The House Ways and Means subcommittee on oversight discovered the unpaid taxes in a review of tax records from 23 of the firms receiving the most money, Lewis said as he opened a hearing on the issue.

The committee said it could not legally release the names of the companies owing taxes. It said one recipient had almost $113 million in unpaid federal income taxes from 2005 and 2006. A second recipient owed almost $102 million dating to before 2004. Another was behind $1.1 million in federal income taxes and $223,000 in federal employment taxes.

“If we looked at all 470 recipients, how much would they owe?” Lewis asked.

Lewis said the panel plans to review tax records from other firms receiving federal money, but he was unsure if it would look at every firm.

“We’re not done,” he said.

Banks and other firms receiving federal money were required to sign contracts stating they had no unpaid taxes, Lewis said. But he said the Treasury Department did not ask them to turn over their tax records.

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Pelosi, Rangel rushing to tax AIG and other bonuses 90%; This caused a revolution once…

Tax Cheat Geithner Makes First Change At IRS: Fires Debt Collection Agents

March 7, 2009

So much for privatizing the federal government.

The Internal Revenue Service’s decision this week to quit using debt collectors to dun delinquent taxpayers was celebrated by public employee unions as a pendulum shift after watching the Bush administration often opt for private contractors over federal workers to deliver government services.


The IRS program was a small one, bringing in a little more than $80 million since its inception in 2006. But it represented an ideological toehold for conservatives who believe that private companies are more efficient than government agencies.

It was an ideology embraced by former President George W. Bush, who famously — and unsuccessfully — toyed with the idea of partially privatizing Social Security.

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Of course we won’t have bigger government…..At the IRS, Schulman said he expects to hire more than 1,000 workers this year to increase collections.


Geithner, Daschle Remind Us, Taxes Too Hard for Democrats; How Can They Create a Workable Stimulus?

January 31, 2009

Democrats not paying their own taxes makes me question the biggest government give away ever: the stimulus.

Treasury Secretary Tim Geithner wasn’t sharp enough to use Turbotax and to ethically pay his own taxes; until that is he was nominated for the top financial job in the nation.

Daschle Knew of Tax Issues Last June, Raising Questions on Obama Vetting Process, Ethics

Now former Senate Majority Leader Tom Daschle, it turn out, accepted hundreds of thousands in gifts and compensation without ever noticing or considering these goodies income.  he didn’t confes until after he was vetted by team Obama for the HHS job.

Psst: you guys like me with little money searching for dimes in your pocket at the 7-11, if a company gave you a Cadillac and a chauffeur, it would never occur to you that was a valueable asset?

Geithner and Daschle raise serious concerns about mental ability or ethics or both.  And they add nothing to America’s trust of the government and should be expelled from further government service.

Related from Michelle Malkin:

Obama Tending Toward Swampland Salesman on Bipartisanship, Transparency, Ethical Government

January 29, 2009

President Obama is quickly becoming a swamp land salesman.  We’d liken him to a used car salesman but everyone in The Motor City is already unhappy with him.

On bipartisanship, the president is clear. He wants it.  So he allowed the House of Representatives, including Speaker Nancy Pelosi, to write a stimulus bill.  Then the president went to Capitol Hill to make the pitch for bipartisanship.

Too late.

The president even apparently said to reluctant Republicans, “I won.”

Nancy Pelosi apparently claimed the higher ground, saying, “We won.”

Republicans actually thought they’d be part of the legislative process.

Not one Republican voted for the Obama stimulus.

“That’s just not the way it works,” one Republican told us.

Then there is the oath on transparency.  Followed by an oath in the White House without any news media writers or reporters.  “We would have needed a bigger room, ” one White House aide said.  Call me: I can point out the bigger rooms.

And on lobbyists and ethics in government the president has already asked for several exemptions, including for his Treasury Secretary that forgot to pay his taxes and now supervises the IRS and for his nominee as Deputy Secretary of Defense, William Lynn, a lobbyist.

But we are early in this presidency and there is plenty of time left to learn….

 Obama’s Bipartisanship Lost In Nancy Pelosi’s Office; Now President Tries Senate GOP For Help with Recovery Bill

Obama finds room for lobbyists with “exceptions” to his own ethics rules

Obama’s Open Records Pledge Tested

Obama Offered Republicans ‘Input’ On Stimulus: But “Oh My God” Is Response To Pelosi Bill

Obama’s Ethical Government: It’s Your Call

January 22, 2009

The Obama Administration has sworn to uphold the highest ethical standards ever.

Have we heard this before?

And haven’t we already seen ethical callenges for the new administration?

New Mexico Governor Bill Richardson removed himself from consideration after the then President-elect nominated him as Commerce Secretary.

Richardson said he had done no wrong.

Treasury Secretary nominee Timothy F. Geithner told the Senate Committee considering his nomination that the nonpayment of payroll taxes in the three years he was at the International Monetary Fund from 2001 to 2004 “were careless mistakes. They were avoidable mistakes. But they were unintentional. I should have been more careful.”

Timothy Geithner testifies before the Senate Finance Committee ...
Fool Timothy Geithner testifies before the Senate Finance Committee on his nomination to be US Treasury Secretary at the Dirksen Senate office Building in Washington, DC. Geithner apologized Wednesday over past tax transgressions….  He wants to run the IRS so he can make sure you pay your taxes….”I was careless”….(AFP/Mandel Ngan)

He remains the nominee for Secretary of the Treasury.

The “G Man” did do wrong, got caught making money instead of paying taxes, and paid up and got away with it.

Apparently, if you are in any questionable ethical jam in the Obama Administration: it’s your call.

Since we are in an economic mess and Timothy Geithner is apparently a well qualified nominee for Treasury, even though his recent service dolling out the people’s money might be questionable, his ego allows him to stay in contention.  His President and the Senate will probably support him.

Ethics sometimes looks “situational.”  No wrongdoing has been proven in the case of Illinois Governor Blagojevich, yet he stands impeached.  Nobody liked him anyway.

Blago: call G-Man.  He made some money and got away with it, for a while.  You didn’t make a dime and got impeached.  Go figure.

In this Tuesday, Dec. 30, 2008 file photo, Illinois Gov. Rod ...
Not guilty of anything…In this Tuesday, Dec. 30, 2008 file photo, Illinois Gov. Rod Blagojevich has some final words for the media after he announces his choice of former Ill. Attorney General Roland Burris to fill President-elect Barack Obama’s U.S. Senate seat in Chicago. The U.S. Department of Homeland Security has revoked embattled Gov. Rod Blagojevich’s access to classified federal security information.(AP Photo/Paul Beaty, file)

“We need Geithner in this economic crisis,” Democrats are saying all over news TV shows.

New Mexico Governor Bill Richardson is seen at the University ...
Bill Richardson

So Richardson apparently said to Barack Obama, “Please do not consider me for Commerce any more, as I have this little grand jury problem to deal with.” This is really too bad, because Bill Richardson speaks Spanish, represents well some in the minority community, and is extremely well qualified at just about anything he tries to do.  He also proved his skill and experienced in talking with nasty dictators.

Mr. Richardson has my respect and admiration for pulling his name at the slightest hint of trouble…

Geithner?  I can’t give him the same kudo…

 Bill Richardson Exits Obama Cabinet Under The Cloud of Possible Corruption
Obama Stresses Transparency, Ethical Conduct to New Administration

Read the rest:
Obama, Biden: Fight Scandal, Corruption, Bad Government Please….

 Democratic Scandals Boring, Less Sexual, But Genuine

Carville’s 2009 Predictions: Stand By For More Democrat Scandals
 Obama Gets an “F” on Transition Openness, Transparency

In this Aug. 17, 2005, file photo Sen. Barack Obama, D-Illinois, ... 
In this Aug. 17, 2005, file photo Sen. Barack Obama, D-Illinois, left, laughs with Illinois Gov. Rod Blagojevich during Governor’s Day at the Illinois State Fair  in Springfield, Ill.  Blago’s real crime: nobody really likes him….


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

January 15, 2009

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.

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 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…


No Drama Obama Running Too Fast? Nominees Not Properly Vetted?

January 14, 2009

At the end of a nearly seamless transition, President-elect Barack Obama has been buffeted by a string of embarrassing jolts within the space of two weeks.

The disclosure Tuesday that his choice for treasury secretary, New York Federal Reserve chief Timothy Geithner, failed to pay $34,000 in taxes and employed a housekeeper without proper immigration papers was another jarring distraction just days before Obama’s inauguration — and raises fresh questions about his team’s judgment, vetting procedures and political sensitivities.

By TOM RAUM, Associated Press Writer

It follows New Mexico Gov. Bill Richardson‘s sudden withdrawal on Jan. 4 from consideration as commerce secretary, citing a federal investigation into how his political donors landed a lucrative transportation contract.

Senate Democratic leaders and Obama transition officials immediately voiced confidence in Geithner and called for his quick confirmation ….

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