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Obama Defends Geithner, Expresses Confidence in his Confirmation

January 14, 2009 5:56 PM

President-elect Barack Obama today defended his choice for Treasury Secretary, calling for Tim Geithner to be confirmed even amid questions still lurking about his failure to pay the correct amount of taxes on time, and employing a housekeeper whose work authorization had expired.

At his transition office in downtown Washington, D.C., the president-elect addressed primarily the tax issue, and said that while the problem is embarrassing to Geithner, personally it does not change his credibility.

“It is an innocent mistake. It is a mistake that’s commonly made for people who are working internationally or for international institutions. It has been corrected. He’s paid the penalties,” Obama said.

Geithner worked at the International Monetary Fund from 2001 to 2003. The Obama Transition Team discovered that Geithner had not paid self-employment taxes (which the IMF requires their employees to do) from 2001 -2002 as they were vetting him for Treasury secretary. Geithner has since paid back the money that he owes.

Geithner's nomination hearing is scheduled for Jan. 21st, one day after Obama is sworn in as president.

Obama made his expectations of Congress clear, saying that this should not jeopardize his confirmation.

“My expectation is that Tim Geithner will be confirmed. And my expectation is that he is going to do an outstanding job on behalf of the American people,” Obama said.

The president-elect lauded how both sides of the isle believe that Geithner is uniquely qualified for the job.

Republican Sen. Lindsey Graham, who had briefed the president-elect, along with VP-elect Joe Biden, on their trip to the Middle East in the office earlier, was on hand to offer some Republican response.

“These are huge times. Now is not the time to think in small political terms,” Graham told reporters, “I don’t see any desire by the Republican Party to play gotcha on something like this. We need a new secretary of treasury who understands where this country is at financially and has a game plan to move forward. I think he’s the right guy.”

-- Sunlen Miller

January 14, 2009 | Permalink | Share | User Comments (120)

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When tim geithner didn't pay his taxes,it's an "innocent" mistake.
When Joe the plumpmer owed back taxes, he's a tax cheat.
Hypocrisy should be the new buzz word for the obama administration..

Posted by: Reality2009 | Jan 16, 2009 10:41:02 AM

Republican Sen. Lindsey Graham should read Democrat Sen. Lindsey Graham. Does he have an (conservative) principles? Graham says "We need a new secretary of treasury who understands where this country is at financially and has a game plan to move forward." What about someone with some integrity?
Graham-Pelosi sounds more like the combo.

Posted by: deanbob | Jan 15, 2009 6:54:43 PM

Obama says it was an innocent mistake? Is this the kind of "CHANGE" we can expect from the new administration? How do Obama supporter feel about this? Kind of like the Global Warming 'truths'?

Posted by: deanbob | Jan 15, 2009 6:48:33 PM

Just curious, what was the reason again why we're celebrating on 1/20/09?
Did the greek columns arrived yet in DC?

Posted by: GetReal2009 | Jan 15, 2009 5:19:49 PM

Didn't VP-Elect Joe Biden say
"It is our patriotic duty to pay taxes"?
Therefore under Biden's definition
Geithner is not a patriot in addition
to being a tax cheat!

Posted by: reaganfan | Jan 15, 2009 5:01:08 PM

Geithner cannot be defended!
How can you appoint a person to be
Treasury Secretary which includes being
head of the IRS who didn't pay his
payroll taxes from 2001-2004!
The fact that he paid the amount due
right before is nomination is
suspicious!
During these tough economic times the
American Public needs to have
confidence in the person who will
head the Tresury Department.
Geithner due to his failure to pay his
taxes timely cannot be that person!
PEBO should withdraw his name
immediately!

Posted by: reaganfan | Jan 15, 2009 4:56:48 PM

What concerns me is not that he made a mistake, but that even after the mistake was pointed out - he did not pay what he owed until nominated for this position. Very revealing of this man's charachter. You can be the smartest mind in the country, but if you lack charachter it will all come tumbling down. Yes, charachter does matter. How will he have the respect of those under him in the IRS?
He needs to respectfully step aside. That's what a man of charachter would do.

Posted by: Nancy | Jan 15, 2009 4:46:16 PM

"Yes poor people are going to blame the new President versus blaming the Republicans, who ironically blame the poor for causing the ecomomic crisis."
----------------------------------
Ryan,

You have to listen better son!

Those of us on the right are blaming Liberals for the Community Reinvestment ACt & Barney Frank for insisting that the poor are dersving of mortgages...EVEN IF THEY CANNOT POSSIBLY EVER PAY THE BILL !!!!

Stange how you ALWAYS leave the little detail out...LOL...

Maybe instead of that...for the moment..you should be asking Geithner about all that money he helped AIG get.

Who knows, maybe he used his cut in that deal to pay the for cheating on his taxes!

Posted by: Mike_C | Jan 15, 2009 4:29:43 PM

Well it looks like the honeymoon with Barack Obama is over. Funny how people are most qualified for a job...right up until the time they actually start doing it and making decisions...then reality sets in (and approval ratings fall very fast). But that's a reality of your own doing if you are making poor decisions. And if this guy (Geithner) is an example of the best you can do and the type of decisions we can expect then you've got a really, really long 4 years in front of you. You will be judged by the decisions you make and the company you keep. People who voted for you and didn't are keeping score. Dump this guy and find a person who truly is above reproach. That's what vetting is for and why they should be removed from consideration before this kind of blatent behavior becomes common knowledge and hurts your presidency before you even take office. Then, maybe if they have any brains, "smart" guys will start realizing that WE THE PEOPLE mean business when we elect officials and appoint officials to positions (any/all positions) that we expect them to be obeying the laws and be of good character (yes Bill Clinton, character does matter). And those that want to see if we really mean it, or what they can get away with will likely have cabinet level positions yanked away from them and leave them to contemplate their own "mistakes" while we take up with someone who has better character and no doubt, much "smarter" in the long run. People who will cheat once will cheat again...and again. Beware...be warned!

Posted by: ypadgett | Jan 15, 2009 4:09:37 PM

"Compared to what Obama's used to in Chicago and IL, this is nothing."

How many elderly and disabled, and un-rich retirees, are hassled half to death -- or further -- by such "honest mistakes" as Geithner's emanating deliberately from Social Security functionaries all over the country?

Somebody oughtta sic an "investigative" type on THAT . . .

Posted by: Belle Starr | Jan 15, 2009 1:33:06 PM

Geithner, Rangel, Holder --- wow, you'd think there was an institutionally corrupt mindset here!!!

Posted by: Mark - Indiana | Jan 15, 2009 1:29:35 PM

Interesting that Geithner says it was a "mistake" --- he signed an IRS document that said he understood the situation and would pay the money --- hmmmmmm.....?????

Posted by: Mark - Indiana | Jan 15, 2009 1:24:36 PM

Gethner's teevee appearances yesterday conveyed the demeanor of someone who knows that other revelations are forthcoming.

Given that Geithner's so good at fudging government paper-work, you'd think he'd have assisted his maid with her immigration mess.

Think Geithner bothered to pay FICA taxes for the MAID? Having employers who DO arrange for such things makes a BIG difference, down the road, for the servant classes.

Posted by: Belle Starr | Jan 15, 2009 1:23:37 PM

Compared to what Obama's used to in Chicago and IL, this is nothing. Now wonder he just shrugs.

Posted by: Interested08 | Jan 15, 2009 1:22:12 PM

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. As a CPA who has worked with employees of international organizations for many years, I can assure you that the employees 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.

Posted by: CPA Tax Pro | Jan 15, 2009 1:01:12 PM

"What a JOKE this guy is & The Obama Team in general for letting this guy even get to this point!"

The particularly SINISTER part of it is the Brock machine's trying to fix the Senate committee, THEN going forth to murmur "innocent mistake".

That's more than a "joke" -- that's deep dissembling and disinformation from the fraudulent font of "change".

Five days left to knock this hoodlum out of His coronation.

Posted by: Belle Starr | Jan 15, 2009 1:00:24 PM

Yes, the excuse that he did not know was a blatant LIE! He knew his taxes were not being taken out and he was being compensated "extra" to take care of that!

What a JOKE this guy is & The Obama Team in general for letting this guy even get to this point!

Posted by: Mike_C | Jan 15, 2009 12:52:48 PM

"Its like right wing talking points for dummies."

Ryan,

Close!...LOL...its the right wing talking points for talking to totally partisan liberals who refuse to apply the same criteria to themselves that that whine about when talking about conservatives!

Posted by: Mike_C | Jan 15, 2009 12:50:47 PM

"See if that assumption holds past April Fool's Day. There are gonna be some VERY peeved-off "black" and poor people, for starters, most of whom are gonna be, uh, hungry."

ROFLMAO.

Yes poor people are going to blame the new President versus blaming the Republicans, who ironically blame the poor for causing the ecomomic crisis.

Gallup Poll Daily tracking shows that 65% of Americans continue to say they are confident in Barack Obama's ability to be a good president.

A new USA Today/Gallup poll, conducted Jan. 9-11, finds 34% of Americans approving of the overall job George W. Bush is doing as president and 61% disapproving

Posted by: Ryan C | Jan 15, 2009 12:44:34 PM

"Barack Hussein Obama has spoken so bow down now. I'm tired of all the hype already. What has this community leader really done? I long for the America of yesterday."

Its like right wing talking points for dummies.

Posted by: Ryan C | Jan 15, 2009 12:37:58 PM

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