• Barack Obama,  economics,  Timothy Geithner

    Treasury Secretary Geithner Does NOT Rule Out Replacing More CEOs – Meanwhile Unemployment SOARS

    geithner-and-ceos

    First it was General Motor’s CEO Rick Waggoner who resigned at the behest of President Obama and now MORE CEOs may go according to Secretary of the Treasury Timothy Geithner.

    Days after GM’s CEO Rick Wagoner was forced out by the Obama administration, Treasury Secretary Timothy Geithner left open the possibility that such moves could happen again.

    In an interview with CBS Evening News anchor Katie Couric, Geithner acknowledged the government has had to do “exceptional things” – citing AIG as well as Fannie Mae and Freddie Mac.

    “We have changed management aboard,” he said. “And where we’ve done that, we’ve done it because we thought that was necessary to make sure these institutions emerge stronger in the future.”

    The federal government should just stop monkeying around with the private business sector. If the business is failing get out of the way and let it fail.

    Don’t bail out the business and then micromanage it from the Treasury Department.

    Obama and the Democrats in Congress have failed to stem unemployment since the iunauguration with their tax and spend policies. What makes anyone think they can run the automotive industry or any business sector?

    The number of people filing initial claims for unemployment benefits unexpectedly rose last week, while those filing continuing claims hit an all-time high for the 10th straight week, according to a government report released Thursday.

    In the week ended March 28, 669,000 people filed initial jobless claims, up 12,000 from the previous week’s upwardly revised figure of 657,000, the Labor Department reported.

    It was the largest weekly increase since October 1982, and it surprised economists surveyed by Briefing.com, who had forecast initial claims to decline to 650,000.

    The number of people continuing to file for jobless benefits rose 161,000 to 5.7 million in the week ended March 21, the latest week for which data was available. It was the highest number since the government began keeping records in 1967, and the 10th consecutive week that continuing claims rose to a record high.

    This move by Geithner and Obama is unprecedented and should be stopped cold by the Congress by a rejection of Obama’s budget.


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  • AIG,  Barack Obama,  Chris Dodd,  economics,  Elton Gallegly,  Timothy Geithner

    House Passes Bill Taxing AIG and Other Employee Bonuses – Kabuki Theater

    tax-weapon

    Michelle is RIGHT about referring to the passage of the House Bill today exacting 90 per cent taxes on AIG and other companies who enjoy government bailouts employee bonuses as Kabuki Theater.

    Denouncing a “squandering of the people’s money,” lawmakers voted decisively Thursday to impose a 90 percent tax on millions of dollars in employee bonuses paid by troubled insurance giant AIG and other bailed-out companies.

    In some cases the bonuses might be taxed 100 percent leaving the recipients with nothing.

    The House vote was 328-93. Similar legislation has been introduced in the Senate and President Barack Obama quickly signaled general support for the concept.

    “I look forward to receiving a final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated,” the president said in a statement.

    “We want our money back now for the taxpayers,” said House Speaker Nancy Pelosi. “It isn’t that complicated.”

    Rep. Charles Rangel, a New York Democrat, chairman of the tax-writing House Ways and Means Committee, said he expected local and state governments to take the remaining 10 percent of the bonuses, nullifying the pay-outs.

    The bonuses are outrageous but it was President Obama who signed the economic stimulus bill that allowed them – whether he knew or understood they were in the bill. And, it was Timothy Geithner’s Treasury Department that asked Senator Chris Dodd to insert a provision in last month’s $787 billion economic- stimulus legislation that had the effect of authorizing American International Group Inc.’s bonuses.

    But, the Kabuki Theater comes from Flap’s own Congressman, Elton Gallegly and the fact this TAX AS A WEAPON legislation is a BILL of ATTAINDER which is prohibited by the U.S. Constitution.

    From Congressman Gallegly’s Press Release:

    “As a person with a lifetime record of opposing tax increases, today I voted for a bill to tax bonuses awarded to executives who received federal bailout money. It was the least the House could do to reclaim hard-earned taxpayer money from Wall Street firms who insult American taxpayers by rewarding those responsible for our economic crisis.

    “It’s not the bill I would have preferred. I wanted to vote for the Republican alternative that would have recouped 100 percent of the bonuses. It would have done so by denying future federal funds to any company who did not recoup bonuses paid out under previous bailouts. It also would have required Treasury Department approval before companies could give future bonuses. I believe the bill would have been more effective and would have passed constitutional muster.

    “Unfortunately, my Democratic colleagues—who stripped language banning bonuses from the stimulus bill and therefore allowed these payments—did not give members an opportunity to vote on the better bill.

    “Right now, this was the only bill available to prevent AIG and other companies who receive bailout money to know of my outrage at giving outlandish bonuses to executives who failed the American people. These companies must get the message that the American people will no longer tolerate this behavior. Therefore, I voted for this bill.

    “I look forward to working with my Democratic colleagues to pass meaningful legislation that will fix this loophole.”

    The AIG bonus bill is a JOKE. The Democrats are blaming Bush and everyone knows the REAL culprits are Timothy Geithner, Chris Dodd and Barack Obama.

    The Democrats are running for cover and Flap’s Representative should have voted NO today and for any additional federal government bailouts PERIOD.


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  • Barack Obama,  Timothy Geithner

    Day By Day by Chris Muir March 13, 2009 – Experience Needed

    day by day 031309

    Day By Day by Chris Muir

    Flap does not think the “TAX CHEAT” issue or GOP hype of same is the real reason why Barack Obama is having trouble filling administration positions.

    No one is a Saint with regards to the IRS and the U.S. Senate has NOT made back taxes a deal breaker on the path to confirmation – for example, Timothy Geithner, Secretary of the Treasury.

    But, let’s look at a couple of the  folks who withdrew their nominations e.g. Tom Daschle and Bill Richardson. There is an underlying issue of corruption and inapprpriate use of government influence/resources in each case. Plus, their nominations were withdrawn by themselves (really Obama pressure) before they were considered by the Senate.

    The Obama Administration needs to stop moaning about Republican obstructionism, find some good political appointees and get the Treasury Department staffed at appropriate levels.

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    The Day By Day Archive


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  • Barack Obama,  economics,  Timothy Geithner

    Poll Watch: 56 Per Cent OPPOSE Any More Government Help for Banks

    ramirez toon122308
    Political Cartoon by Michael Ramirez

    The American voting public does NOT heart the banking industry.

    When asked the question: Do you favor or oppose additional government spending or guarantees being to help the troubled banking industry? The answer is a resounding NO.

    While the Obama Administration is pledging up to $2.5 trillion in support for the troubled U.S. financial system, 56% of Americans oppose giving bankers any additional government money or any guarantees backed by the government.

    Twenty percent (20%) support such assistance, and 24% are not sure in a new Rasmussen Reports national telephone survey. The polling was done Monday and Tuesday nights. Treasury Secretary Timothy Geithner announced the bank bailout plan on Tuesday, but its contents were widely reported before that.

    Among those more closely attuned to the workings of the financial industry, opposition is even higher. Fifty-nine percent (59%) of investors oppose the new bailout, compared to 53% of non-investors.

    The stock market plunged 4.6% in reaction to Geithner’s plan, and consumer confidence as measured by the Rasmussen Consumer Index fell to an all-time low. The Rasmussen Investor Index remains just slightly above the all-time low it hit in December.

    Americans want to see details from Treasury Secretary Timothy Geithner and President Obama on how they deal with toxic bank assets.

    Why not just let the banks fail and recapitalize new banks?

    A plurality of Americans say the earlier bank bailout plan has either had no impact or made the economy worse. Moreover, most Americans don’t think their political leaders know what they’re doing anyway as they wrestle with the country’s economic problems.

    As the bank CEO’s go up on Capitol Hill today, hat in hand, keep in mind the American public does NOT support any further government bailout.


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  • Barack Obama,  Day By Day,  Hilda Solis,  Timothy Geithner,  Tom Daschle

    Day By Day by Chris Muir February 6, 2009 – Tax Time

    day by day 020609

    Day By Day by Chris Muir

    At the rate President Obama has been appointing tax cheats to his Cabinet, by April 15th he still may not have a full one.

    Let’s see:

    • Tom Daschle – Secretary of Health and Human Services
    • Timothy Geithner, Secretary of the Treasury
    • Hilda Solis, Secretary of Labor

    Yeah, Chris, you may very well be correct – a lonely time for the President.

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    The Day By Day Archive


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  • Barack Obama,  Timothy Geithner,  Tom Daschle

    Day By Day by Chris Muir February 4, 2009 – Health Plan

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    Day By Day by Chris Muir

    After President Obama “screwed up” with the Tom Daschle appointment as HHS Secretary, he is left with no one to shepherd his universal health care program through the Congress. How any President could consider a “tax cheat” and whored out lobbyist to the LEFT as someone to undertake such a program is really beyond belief.

    Now, President Obama, what about your “tax cheat” Timothy Geithner as Treasury Secretary? Shouldn’t Geithner resign as well?

    Obama’s reputation has been tainted with these appointments and it is becoming apparent that “The One” is wearing NO clothes.


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  • Timothy Geithner

    Timothy Geithner Confirmed as Treasury Secretary – The Roll Call Vote: 60 – 34

    Timothy Geithner confirmed

    New York Federal Reserve Bank President Timothy Geithner, U.S. President Barack Obama’s nominee for Treasury Secretary, testifies at his confirmation hearing before the Senate Finance Committee on Capitol Hill in Washington,  January 21, 2009. The Senate confirmed Geithner as Treasury secretary on January 26, 2009.

    Here is the Roll Call Vote in the United States Senate:

    Geithner-confirmtion-vote

    Flap would have voted NO because of Timothy Geithner’s tax obfuscation.

    Why ANY GOP Senator voted for this nomination is beyond me. They are:

    • Corker (R-TN)
    • Cornyn (R-TX)
    • Ensign (R-NV)
    • Graham (R-SC)
    • Gregg (R-NH)
    • Hatch (R-UT)
    • Shelby (R-AL)
    • Snowe (R-ME)
    • Voinovich (R-OH)

    NOTE: Flap will never support monetarily ANY GOP Senator that voted to confirm Geithner.


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  • 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.

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


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  • Timothy Geithner

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

    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

    Jake Tapper has the flap and distills it down to this:

    The basic issue seems to be that when Geithner worked at the International Monetary Fund from 2001 to 2003, he filed his taxes improperly, and he also for a time employed someone who didn’t have legal immigration status.

    The tax issue, as I understand it, is that IMF employees receive W-2s as employees and are treated as if they were self-employed, so they do not have federal and state taxes withheld from their paychecks. As part of Geithner’s vetting, the Obama Transition Team discovered that he had not paid self-employment taxes in 2001 and 2002.

    On Nov. 21, 2008, Geithner paid $25,970 in these overdue taxes plus interest — $2,364 and interest of $956 for 2001 and $16,812 and interest of $5838 for 2002 (Geithner had been notified in 2006 by the IRS that he owed self-employment taxes and interest for 2003 and 2004, after which he paid tax and interest totaling $17,230).

    Which begs the question: If the IRS notified Geithner in 2006 that he owed self-employment taxes for his time at the IMF in 2003 and 2004, why did he not realize that those taxes should have applied to him in 2001 and 2002 as well?

    There is another — what seems to me to be a lesser — issue with a housekeeper that the Geithners employed to clean their home from 2004-2005. She had a current Employee Authorization Document at the time she was hired, but three months before she stopped working for the family that authorization expired.

    In the meantime, Senate Democrats scramble while Barack Obama supports his nominee with these talking points.

    * Before becoming President of the Federal Reserve Bank of New York, Tim Geithner worked for the International Monetary Fund from 2001-2003. He paid all of his income taxes on his IMF income, but made a common mistake on his tax returns with regard to self-employment taxes. He voluntarily corrected the mistake as soon as it was discovered.

    * For tax purposes, while IMF employees receive W-2’s as employees, they are treated as if they were self-employed. This unusual payroll system commonly creates confusion among U.S. employees of the international organizations like the IMF , who typically are accustomed to having employers withhold federal and state taxes. This problem has been so common that in November 2006 (as supplemented in 2007) the IRS made a taxpayer favorable settlement offer to all U.S. employees of Embassies and International Organizations in order to bring the employees into compliance with their U.S. tax obligations. http://www.irs.gov/newsroom/article/0,,id=167770,00.html

    * As part of the vetting process conducted by the Presidential Transition Team, it was discovered that Mr. Geithner mistakenly had not paid self-employment taxes in 2001 and 2002 as an IMF employee. Mr. Geithner had initially prepared the returns himself. However, an accountant reviewed his 2001 returns as part of an amended return filed 2002, and also failed to catch the mistake on the self employment taxes.

    * Upon learning of this error on November 21, 2008, Mr. Geithner immediately submitted payment for tax that would have been due in those years plus interest. For 2001 Mr. Geithner paid additional tax of $2,364 and interest of $956, for a total of $3320. For 2002 he paid additional tax of $16,812 and interest of $5838, for a total of $22,650. The total additional amount paid for the two years was $25,970. All of his taxes have now been paid in full, and at no time was there any intention on Mr. Geithner’s part to avoid taxes.

    * Mr. Geithner worked for the IMF until the fall of 2003, and he also received a small amount of income from the IMF in early 2004. An accountant prepared Mr. Geithner’s 2003 and 2004 returns and advised him in writing that he was exempt self-employment taxes on his IMF income.

    * In 2006, the IRS initiated a letter audit of Mr. Geithner’s taxes for 2003 and 2004 and concluded that he owed self-employment tax and interest for 2003 and 2004 with respect to his IMF employment. He paid tax and interest totaling $17,230 (of which $14,847 was tax and $2,383 was interest) for the two-year period, and the IRS waived all penalties. Also, Mr. Geithner was advised that he had no further liability for Social Security taxes on his IMF income.

    * The Committee also raised an issue regarding a housekeeper that the Geithner’s employed to clean their home from 2004-2005. The Geithners verified that she had a current Employee Authorization Document at the time she was hired. Mr. Geithner was unaware that three months before she stopped working for them to have a baby, her authorization expired. Nevertheless, she continued to reside legally in the United States, she was married to a U.S. citizen, and she was granted a green card a few months later.

    Harry Reid says he sees no problem with the nomination and apparently does Republican Orrin Hatch.

    So, does this mean the Zoe Baird standard of rejection for political office (hiring an illegal alien to clean your house or take care of your kids) or failing to pay one’s taxes is NOW viewed as a simple mistake.

    If so, will there be the same standard applied to Republican nominations by subsequent GOP Administrations?

    Somehow, Flap doubts it.

    Stay tuned. There may be more coming……


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