• Barack Obama,  Timothy Geithner

    Timothy Geithner Received IMF Reimbursement for Taxes He Did Not Pay

    Timothy Geithner Secretary of Treasury

    Treasury Secretary-designate Timothy Geithner looks on at left as President-elect Barack Obama meets with members of his economic team at his transition office in Washington. Geithner, President-elect Barack Obama’s choice to run the Treasury Department and lead the economic rescue effort disclosed to senators Tuesday that he failed to pay $34,000 in taxes from 2001 to 2004, a last-minute complication in an otherwise smooth path to confirmation

    More trouble for Timorthy Geithner, Barack Obama’s nominee for Secretary of the Treasury (and head of the Internal Revenue Service).

    Byron York over at National Review has the poop.

    Although it has been dismissed by some observers as a “hiccup” in an otherwise smooth confirmation process, treasury secretary-designate Timothy Geithner’s failure to pay self-employment taxes during the years he worked at the International Monetary Fund is causing some Republicans on Capitol Hill to ask serious questions about his actions. First among those questions is why he accepted payment from the IMF as restitution for taxes that he had not, in fact, paid.

    Documents released by the Senate Finance Committee strongly suggest that Geithner knew, or should have known, what he was doing when he did not pay self-employment taxes in 2001, 2002, 2003, and 2004. After his failure to pay was discovered, first by the IRS and later during the vetting process, Geithner paid the federal government a total of $42,702 in taxes and interest.

    The IMF did not withhold state and federal income taxes or self-employment taxes — Social Security and Medicare — from its employees’ paychecks. But the IMF took great care to explain to those employees, in detail and frequently, what their tax responsibilities were. First, each employee was given the IMF Employee Tax Manual. Then, employees were given quarterly wage statements for the specific purpose of calculating taxes. Then, they were given year-end wage statements. And then, each IMF employee was required to file what was known as an Annual Tax Allowance Request. Geithner received all those documents.

    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.

    Flap listened to GOP Senators Lindsey Graham (R-SC) and John Ensign (R-NV) poo poo the story this afternoon. But, wait.

    Did these Republican Senators know all of the story? Doubtful – at least Flap hopes.

    Republican Senator Charles Grassley, the ranking mmeber of the Senate Finance Committee must now demand answers from Geithner as to why he did not pay his taxes after receiving the money to do so? This flap is more than a minor hiccup in the confirmation process.

    Timothy Geithner’s credibility and competence can truly be questioned.

    The Senate should do just that when Geithner’s confirmation hearings resume next week – after Obama’s inauguration.

    Previous:

    Timothy Geithner’s Nomination for Secretary of the Treasury in Trouble? Senate Democrats Scramble


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  • Barack Obama,  Larry Kudlow

    Larry Kudlow Gets an Obama Thrill Down His Leg

    OLD. Damn Larry it is easy to impress you and why Americans no longer trust the opinion makers based in New York and Washington.

    Yeah, Flap would have gone too but to be so obsequious afterwards?

    Wouldn’t happen no matter how many exclusives Axelrod would promise.

    The Transcript:

    CNBC’s Larry Kudlow: THIS WAS AN OFF-THE-RECORD DINNER AND I’M GOING TO KEEP IT OFF THE RECORD IN TERMS OF DEEP CONTENT, BUT PEGGY NOONAN WAS THERE, PAUL GIGOT OF THE WALL STREET JOURNAL, BILL KRISTOL, MYSELF, CHARLES KRAUTHAMMER, SOME OTHERS. NINE OR TEN OF US. I DON’T THINK HE’S TRYING TO WIN US OVER, BUT HE’S TRYING TO CONNECT WITH US AND ENGAGE WITH US TO HIT GREAT CREDIT.THIS WAS A VERY CORDIAL DINNER.

    Francis: HE IS CHARMING, RIGHT?

    Kudlow: HE IS CHARMING, HE IS TERRIBLY SMART, BRIGHT, WELL-INFORMED, HE HAS A GREAT SENSE OF HUMOR. AT THE BEGINNING WHEN HE WALKED INTO THE LIVING ROOM, YOU KNOW, WE’RE ALL WAITING —

    Francis: WHERE WERE YOU?

    Kudlow: THIS IS AT GEORGE WILL’S HOUSE….HE COMES IN AND HE CAME UP TO ME, I HAD NEVER MET HIM BEFORE. I THINK HE MAY HAVE WATCHED ‘KUDLOW AND COMPANY’ PERIODICALLY. SOMEBODY GAVE HIM A COLUMN I HAD WRITTEN DEFENDING HIS BUSINESS INVESTMENT TAX CUTS. HE LIKED THAT A LOT. I SAID, ‘YOU KNOW, SIR, SINCE BARNEY FRANK AND NANCY PELOSI, JOHN KERRY, ATTACKED HIM I KNEW I MUST BE ON TO SOMETHING GOOD.’ HE LAUGHED A LOT. I SAID ‘YOU TOOK MY BEST PEOPLE FROM THE PROGRAM. YOU TOOK AUSTAN GOOLSBEE.’ HE LAUGHED AND SAID THEY’RE GOOD MEN. I SAID, BUT MR. PRESIDENT, LET ME CAN YOU, WHY DID YOU LEAVE US ROBERT REICH, WHO I ADORE, AND HE LAUGHED AND SAID I WANT SOMEBODY FIGHTING FOR ME, LARRY,

    INTERESTING THING. THIS IS JUST GENERALLY SPEAKING, HE IS SO WELL-INFORMED, AND HE LOVES TO DEAL WITH BOTH SIDES OF AN ISSUE, AND I’M NOT GOING TO DIVULGE WHAT WAS SAID THERE AND I’M NOT GOING TO GO INTO ANY OF THE SPECIFICS, BUT HE ENJOYS THE BACK AND FORTH, AND HE IS NOT, YOU KNOW, TOUGH, MEAN, INSULTING, SNARLING, NONE OF THAT STUFF, AND WE WEREN’T EITHER.

    THIS WAS A GOOD CONSERVATIVE GROUP AND WE JUST HAD A GREAT BACK AND FORTH, AND HE WANTS TO KEEP THE DIALOGUE GOING WITH CONSERVATIVES. I WOULD SAY I AM HONORED TO BE AT THAT DINNER. I WAS HONORED TO MEET HIM. HE IS A VERY IMPRESSIVE MAN, AND I WISH  HIM ALL THE LUCK IN THE WORLD BECAUSE WE’VE GOT SOME ISSUES TO DEAL WITH.

    Francis: WHAT DID YOU EAT?

    Kudlow: I CAN’T REMEMBER. I WAS SO FOCUSED ON HIM. I WAS SITTING ACROSS FROM HIM —

    Francis: YOU PROBABLY DIDN’T EAT. MAYBE YOU DIDN’T TOUCH ANYTHING.

    Kudlow: THE FOOD WAS EXCELLENT. I PROBABLY DIDN’T EAT A WHOLE LOT. IT WAS ALL VERY INTERESTING, AND HE’S A GOOD MAN, AND WE WILL SEE

    Makes Flap want to GAG……


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  • Barack Obama,  George Will,  Peggy Noonan

    Barack Obama Defangs The Media Right and Left

    Barack Obama at George Wills home

    President-elect Barack Obama waves to reporters as he arrives at a conservative columnist George Will’s private residence for a dinner in Chevy Chase, Md., Tuesday, Jan. 13, 2009

    The RIGHT came first at a private off the record dinner at the home of conservative columnist George Will.

    Call it a charm offensive or a high-level “Listening Tour,” but Barack Obama is already signaling that he intends to break with the current president in one obvious way: hearing from his critics.

    Obama Tuesday night trekked to the Chevy Chase, Md., home of conservative columnist George F. Will to talk politics and get to know some of his fiercest intellectual adversaries: Charles Krauthammer, William Kristol, Larry Kudlow, David Brooks, Rich Lowry, Peggy Noonan, Michael Barone, and Paul Gigot.

    The two-and-half-hour dinner, which came at Will’s request, is only the first get-together between the president-elect and Washington’s opinion-makers.

    Then, this morning it was the LEFT’s turn to bite at the defanging the press operation apple of “The One.”

    Obama held a meeting with several columnists and liberal commentators this morning, following up on last night’s dinner with conservative writers, according to a source with knowledge of the meeting. Some of the writers there today are clearly on the liberal side, while others more moderate.

    The group included the Washington Post’s E.J. Dionne and Eugene Robinson, the Wall Street Journal’s Gerry Seib, National Journal’s Ron Brownstein, the New York Times Frank Rich and Maureen Dowd, and MSNBC’s Rachel Maddow, among others.

    Today’s meeting was held at the transition headquarters, and unlike dinner at George Will’s house, I’m told there weren’t refreshments. But similar to last night’s, the discussion was off the record.

    All of these folks are Washington or New York MSM opinion makers and Obama is playing the “please be nice to me defang” card. Note, the LEFT’s meeting was obviously hastily arranaged (mid-day at Transition HQ and no food) after they whined about “The One” meeting with the RIGHT.

    It may be a nice gesture but Obama’s cabinet appointment distractions are starting to reach a crescendo.

    Exit question: Who on the RIGHT will write the first “Obama is All RIGHT” column?

    Flap is putting his money on Peggy Noonan.


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  • Caroline Kennedy,  David Paterson,  Hillary Clinton

    Caroline Kennedy Fades In New York Senate Poll – Andrew Cuomo Now Preferred

    Caroline Kennedy August 2008
    Caroline Kennedy Schlossberg, seen here in August 25, 2008, addresses the Democratic National Convention. Voters in New York state are not excited by the idea of Caroline Kennedy entering the Senate, but believe she will be picked anyway, a poll released Wednesday shows

    In the latest Quinnipiac Poll, Caroline Kennedy has cooled with New York State voters and now more voters prefer New York Attorney General Andrew Cuomo.

    The poll:

    • N.Y Attorney General Andrew Cuomo – 31%
    • Caroline Kennedy – 24%
    • U.S. Rep. Carolyn Maloney – 6%
    • U.S. Rep. Kirsten Gillibrand – 5%
    • U.S. Rep. Steve Israel – 2%
    • Somebody else – 18%
    • Undecided – 14%

    From January 8 – 12, Quinnipiac University surveyed 1,664 New York State registered voters, with a margin of error of +/- 2.4 percentage points.

    However, New York voters continue to say that Governor David Patterson WILL appoint Kennedy 38-33%.

    Cuomo leads Kennedy 31 – 20 percent among upstate voters and 36 – 22 percent in the suburbs, while Kennedy gets 31 percent of New York City voters to Cuomo’s 29 percent, the independent Quinnipiac (KWIN-uh-pe-ack) University poll finds. Men back Cuomo 32 – 23 percent while women back him 31 – 25 percent.

    New York State voters say 48 – 37 percent that Kennedy is not qualified to be a U.S. Senator and 40 – 37 percent that she would not be a good Senator. Democrats say 47 – 35 percent that she is qualified, while Republicans say 65 – 24 percent that she is not qualified. Independent voters say 51 – 34 percent that she is not qualified.

    The bloom is definitely off the Caroline Kennedy rose by her disasterous early campaigning in upsate New York. She tried to strong arm the Governor and still MAY succeed to the benefit of the New York GOP.

    Want to wager that Sarah Palin hopes Kennedy is chosen?

    Stay tuned….

    Previous:

    New York Governor David Paterson Pulling Away From Caroline Kennedy as Hillary Clinton’s Replacement Senator?

    Caroline Kennedy Sinks in the Polls But Does it Matter?


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  • Barack Obama

    Barack Obama Spreading the Wealth Around With $150 Million Inauguration – Most Expensive in History

    Timothy Geithner Secretary of Treasury

    Treasury Secretary-designate Timothy Geithner looks on at left as President-elect Barack Obama meets with members of his economic team at his transition office in Washington. Geithner, President-elect Barack Obama’s choice to run the Treasury Department and lead the economic rescue effort disclosed to senators Tuesday that he failed to pay $34,000 in taxes from 2001 to 2004, a last-minute complication in an otherwise smooth path to confirmation

    “The One’s” Inauguration will be the MOST EXPENSIVE in United States history. Guess since the Obamessiah is replacing the evil Bush it is worth it?

    Or is Obama merely following through on what he said to “Joe the Plumber” – he is spreading the wealth around.

    Barack Obama’s inauguration is set to cost more than £100m making it the most expensive swearing-in ceremony in US history.

    The President-elect will take less than a minute to recite the oath of office in front of an estimated two million people in the US capital next week.

    But by the time the final dance has been held at one of the many inaugural balls the costs for the day will be a staggering £110m.

    So many people are expected in the U.S. capital that President Bush declared a state of emergency.

    In doing so he paves the way for unlimited funding to be released to those local authorities responsible for staging the event.

    Obama is talking about $ Trillion deficits for the foreseeable future. Another $200 million for his inauguration is a drop in the bucket – especially if Geithner pays his back taxes.

    Inflation here we come.

    Update:

    “The One” in this video tells us the inauguration is all about US and not him.

    President-elect Obama talks about ways for everyone to participate in the Inauguration.

    Right……


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  • Barack Obama,  Day By Day

    Day By Day by Chris Muir January 15, 2009 – And Wash Up After

    Day By Day 011409

    Day By Day by Chris Muir

    The Far LEFT who supported Obama early against Hillary Clinton must be disappointed as “The One” has moved toward the center of the political spectrum.

    Now, they will reveal hypocrisy and use ridicule to rein in the purported progressive Obama. For example, the “LEAK” of a questionnaire in which Obama supported gay marriage – in 1996.

    It may be a little longer before George Soros, Michael Moore, Code Pink and Moveon.org go after him. But, eventually, they will and it won’t be pretty.

    Previous:

    The Day By Day Archive


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  • Del.icio.us Links

    links for 2009-01-14

    • In an incident that pro-life advocates say is the slippery slope that results from legalizing assisted suicide or euthanasia, two medical staffers in England have been arrested for reportedly deciding that the life of a disabled man was not worth saving after he had a heart attack.

      The two ambulance medics were reportedly heard discussing how they would not revive 59-year-old Barry Baker, who had called emergency services saying he was having a heart attack.

      When the unnamed medics arrived at Baker's home, they found him collapsed on the floor and the phone line was still open and recording their conversations. Baker died after the incident.

      A police source told the London Times that the medics were heard discussing how they didn't want to revive Baker saying “words to the effect that he was not worth saving."

    • The president-elect tonight is having dinner with some ideological adversaries: four of the most widely-read conservative columnists.

      He's dining at the Chevy Chase home of Washington Post columnist George Will with the Post's Charles Krauthammer and the New York Times's David Brooks and William Kristol. All three wrote, at times, both kind and scathing things about Obama, though Kristol in particular pushed sharp attack lines against him in the waning days of the race.
      ++++++
      Dinner with the 4 is confirmed. Waiting for tomorrow's columns.

    • A document has emerged suggesting that Obama had taken more public, liberal stands in the past than had been revealed in the digging of reporters and opposition researchers over two years of campaigning, the latest of several pointing to a rightward shift as he moved into national politics.

      In a 1996 questionnaire filled out for a Chicago gay and lesbian newspaper, then called Outlines, Obama came out clearly in favor of same-sex marriage, which he has opposed on the public record throughout his short career in national politics.

      “I favor legalizing same-sex marriages,and would fight efforts to prohibit such marriages,” Obama wrote in the typed, signed, statement.

      There was no use of “civil unions,” and "no compromise whatsoever," the Windy City Times story today notes.
      ++++++
      Where was this during the campaign? AWOL = MSM
      Did this come out to mollify Gays about Pastor Rick Warren?

    • He motorcaded to a house in Maryland this evening, and if the press pool report is accurate, he is breaking bread with William Kristol and David Brooks. (If Brooks and Kristol seem to be unusually briefed about Obama's thinking, you'll know why.)

      CBS News's Dan Raviv tells the pool that the house, on Grafton Street in Chevy Chase, belongs to George Will. (Unless he's moved.)

      Tomorrow, I hear Obama has another private meeting with non-Republican opinion columnists.
      ++++++
      What about Rush and Krauthammer?

    • Sean Hannity pwned the opposition last night in the TV ratings game.
      (tags: SeanHannity)
    • Will this be disqualifying?
    • They were just honest mistakes, really.

      And I’m sure the Obama IRS would be as charitable with you or me as Team Obama is being with Timothy Geithner if we used the same explanation for failing to pay self-employment taxes:
      +++++++
      Ah No.

    • Senators gathered Tuesday in an emergency meeting discussing the fate of Treasury nominee Timothy Geithner, who is under fire after a report that he neglected to pay payroll taxes for himself and employed a housekeeper whose immigration status had expired

      Sen. Charles Grassley (R-Iowa) raised questions today about the immigration status of the housekeeper, and is also questioning why Geithner did not pay Social Security and Medicare taxes when he worked at the International Monetary Fund, The Wall Street Journal first reported this afternoon.
      ++++++
      Disqualifying?
      The GOP should say NO Way!

    • Iranian demonstrators burned photographs of Barack Obama today as they protested against America’s inaction over Gaza.

      Dozens of people gathered in Tehran waving Palestinian flags and defacing and setting fire to images of the President-elect.

      Iranian demonstrators have often burned effigies or pictures of US presidents in the past but this appeared to be the first time Mr Obama’s picture had been defaced, a week before his inauguration as president.
      ++++++++
      But, Obama is so sensitive and will negotiate without preconditions. What happened?

    • President-elect Barack Obama's choice to run the Treasury Department and lead the economic rescue effort disclosed to senators Tuesday that he failed to pay $34,000 in taxes from 2001 to 2004, a last-minute complication in an otherwise smooth path to confirmation.
      ++++++
      Obama is supporting him. Sorry but he has to go. Remember Zoe Baird?
    • The Pentagon said on Tuesday that 61 former detainees from its military prison at Guantanamo Bay, Cuba, appear to have returned to terrorism since their release from custody.

      Pentagon spokesman Geoff Morrell said 18 former detainees are confirmed and 43 suspected of "returning to the fight."

      He said the figures, updated at the end of December, showed a higher rate of recidivism than seen in a previous report showing 37 former detainees as active militants.
      +++++++
      And, Obama will close Gitmo when? And, what will he do with the detainees and where?

    • I find nothing wrong with a newspaper seeking facts about a public official and asking them directly of the official. I see a newspaper seeking access and honest evidence and a governor who refuses to cooperate. And the newspaper was prepared to let the matter drop and killed their story, for Pete's sake. What more does she want if not Coulter-levels of media attention?

      Palin should either answer the ADN's legitimate questions or shut up. But she can't seem to do either.
      +++++++
      The Trig Truther whines like moronic bitch he is.

    • A coalition of labor unions announced Tuesday that it will file amicus briefs to urge the California Supreme Court to overturn Proposition 8, the 2008 ballot measure that banned gay marriage in the state.

      More than 50 labor unions signed onto the brief including some of California's most influential labor groups. Among them: the California Labor Federation, SEIU California State Council, the California Federation of Teachers, the California Nurses Association, the California Faculty Association, UNITE HERE! and the Screen Actors Guild.

      Combined, the labor organizations say they represent 2 million California workers.

      In the brief, the unions argue that Proposition 8 is invalid because it is not a "constitutional amendment," but a "constitutional revision." A revision requires a two-thirds vote of the Legislature to get on the ballot, where an amendment can qualify through the collection of signatures, as Proposition 8 did.

    • The best available fiscal policy measure would be a sharp reduction in the payroll tax, which would boost household disposable income while giving firms an incentive to retain more workers on their payrolls. Total annual collections from households and firms of payroll tax levies total about $625 billion, about 7 percent of disposable personal income. A payroll tax is labeled as the primary means to finance Social Security and Medicare benefits, but those benefits are financed out of government revenues and would, of course, continue to be provided at their full level. The payroll tax is a poorly designed fiscal measure because it acts as a tax on employing labor and, in times of falling demand, a tax on retaining labor. The payroll tax is the primary tax paid by more than 60 percent of American households and so constitutes a marginal disincentive to further work.
    • A newly elected California congressman is calling Barack Obama's proposed economic stimulus plan a bad idea. Representative Tom McClintock has arrived in Washington after defeating Charlie Brown in a recount this fall for California's 4th Congressional District seat, and he is making his opinion of government stimulus money known.

      "I think it's important to understand that government cannot inject a dollar into the economy that it has not first taken out of the economy," said McClintock.

      McClintock says the government will have to borrow money for any stimulus package, and that money, in his opinion, could be better spent by business owners to create jobs, or consumers to buy homes and cars.
      ++++++++
      Here we go with McClintock…….a true conservative

    • Fifty-eight percent (58%) of American adults are opposed to a government economic recovery plan that does not cut taxes, according to a new Rasmussen Reports national telephone survey.

      Adults are evenly divided over whether they would support an economic recovery package that includes tax cuts only – with no government spending. Thirty-seven percent (37%) favor the idea, 38% are opposed, and 25% are not sure.
      +++++++
      For an immediate stimulus, cut the payroll tax for 6 months. DUH

      (tags: taxes bailout)
    • … those unfathomable numbers, hard-working families didn’t get us into this mess, and the Legislature shouldn’t raid the pockets of cash-strapped Californians to get out of it. When faced with hard economic times, families try their best to stretch their household budgets. They cut back on entertainment dollars, they use coupons and they shop for the cheapest gas. Just as you and I shop for the lowest prices, legislators, too, need to budget more wisely.
      This is why I am co-author legislation to bring more accountability to state spending by requiring the state auditor to conduct performance audits on government programs.

      I also firmly believe that increasing taxes will further harm our fragile economy and eliminate jobs rather than create them. That is why it is particularly frustrating that a majority of legislators blatantly ignored the law and the will of the people in a direct assault on Proposition 13 by approving a complicated scheme that amounts to $10 billion in tax hikes.