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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)

User Comments

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"over half of the country will support anything that he does."

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.

Posted by: Belle Starr | Jan 15, 2009 12:37:56 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.

God Bless America!

Posted by: Andy | Jan 15, 2009 12:37:14 PM

"From Byron York today:"

Byron York + anaynous sources on a Democratic issues = bull droppings.

Posted by: Ryan C | Jan 15, 2009 12:34:38 PM

"If this has been one of the Bush people, the news media would have gone out of their minds reporting it"

ESPECIALLY the part where the Brock machine keeps SOME Senators from telling OTHER Senators -- let alone the pore ole "public" -- about Geithner pocketing the tax checks from his employer, instead of passing 'em on to the IRS.

Geithner makes despised insider Paulson look GOOD -- especially with his perp-walk look in the teevee footage.

No wonder Brock's off to the midwest to play "campaign" again. But something suggests His pure-little-pickaninny ploy has about run out of steam: "not this time".

Posted by: Belle Starr | Jan 15, 2009 12:34:29 PM

"Yet, when Linda Chavez made the same mistake she was railroaded out of town and denied a cabinet position. Can someone explain why?"

Because she was an right wing anti-labor nutjob.

Posted by: Ryan C | Jan 15, 2009 12:33:33 PM

Once again Obama ignores corruption.

He didn't have the guts to fight corruption in Chicago so why start now?

Now especially since the media will protect him and over half of the country will support anything that he does.

Posted by: bailey | Jan 15, 2009 12:31:53 PM

It's OK for Obama to nominate a tax cheat to lead the IRS.

It's OK for Obama to waste $50 million on his inauguration.

OK because he is a Democrat and because he is The One.

Posted by: sam | Jan 15, 2009 12:24:01 PM

If this has been one of the Bush people, the news media would have gone out of their minds reporting it, calling him every name in the book. Shamful and disgraceful and you add the rest---what about over $100 billion being spent on inaugural when the country is in the shape it is in. Is that okay ABC, NBC and Cnn?

Posted by: Jane | Jan 15, 2009 11:57:38 AM

Barry is really pretty naive to think that the media can continue to shelter his idiodic mistakes from the public. Despite their superb job at protecting him thus far, eventually he will be exposed for the incompetent, FAR-left, no real record politician that he is.

Posted by: Dave | Jan 15, 2009 11:37:23 AM

Amazing how the Democrats (and most Republicans) can expect it was an honest mistake. Yet, when Linda Chavez made the same mistake she was railroaded out of town and denied a cabinet position. Can someone explain why?

Posted by: stop2think | Jan 15, 2009 11:25:18 AM

No way does a person who doesn't pay their taxes, deserve to be HEAD of the IRS. How insane an idea is that??! Absolutely "NO" to this guy being Treasury secretary! NO WAY!

Posted by: lizathome | Jan 15, 2009 11:06:37 AM

The story advances a little today.

So: are we all clear on the fact that, like most Obama supporters, Geithner paid no Federal income tax for most of this decade? I have probably paid more than $100,000 but then I'm not a public servant.

He was reimbursed above his salary for the amount he paid in taxes. One of the catagories he was suposed to pay out and then get reembursed for was his Federal Self Imployment (ie Social Security) tax.

Not only did he not pay the tax, thus saving himself money, he submitted for reimbursement as though he had incurred this expense. Thus earning himself more money on top of his already cushy tax free salary.

So this was thing was a swindle he got away with for multiple years.

From Byron York today:
"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.”
"

Posted by: BertieW | Jan 15, 2009 11:04:02 AM

barrack, you're not talking to one of your feeble minded liberal fool.
Obama believes that operating above the law is a privilege that he and his cronies are entitle to.
Now that's change we can believed in...... NOT.

Posted by: USA-No1 | Jan 15, 2009 10:57:03 AM

George in Cincy (11:43 PM); Your point is well taken. It IS ridiculously obtuse, but in the case of Tim Geithner it's besides the point. We all have to deal with it.

Posted by: LongT | Jan 15, 2009 10:55:28 AM

Holly (9:35 AM); You hit it on the head! There is absolutely NO WAY this is an "honest mistake". I've been there and your tax obligations are staring you in the face! I'm disappointed in Obama for putting forth this excuse. Either Obama is trying to disingenuously cover up or he doesn't understand himself what is involved with being a independent employee working for an international entity which the IMF obviously is. Obama needs to do some homework on the issue before he starts with the same old political rhetoric.

Posted by: LongT | Jan 15, 2009 10:49:33 AM

Throw the tax cheat out! I pay my taxes!

Posted by: Mihann | Jan 15, 2009 10:27:43 AM

So let me get this straight. The man who would be our Treasury Secretary, arguably the most important post in the new administration, does not understand the process of paying taxes, either for himself or household help. If the average American had failed to pay taxes he or she would be looking at some very stiff penalties if not a jail term. For Obama to defend this as a "simple mistake" is ludicrous. I am a Dem but this appointment should not go through. Of course he knew he was supposed to pay taxes on that income.

Posted by: Cathy | Jan 15, 2009 10:07:28 AM

Yes, it was surely innocent enough. I am sure we have all had illegal maids working for us who we have avoided paying the proper taxes on atleast once in our lives.

Give me a break! Geithner can't follow the rules, but yet he is somehow qualified to montitor everyone else?

Isn't this sort of like asking bill clinton to be the lead counselor at marriage group therapy?

Posted by: jill | Jan 15, 2009 9:45:59 AM

"Innocent mistake"!! As someone familiar with self-employment taxes, I know that cannot be. The employer no doubt showered its employees with information. And if he didn't do his taxes himself (which I doubt), certainly any tax preparer worth his weight in tax forms would wonder why Mr. Geitner wasn't paying any taxes at all despite the fact he had a nice job. Not an innocent mistake.

Even better - the IRS waived penalties. Would they do that for Joe the plumber? Doubtful.

Posted by: Holly | Jan 15, 2009 9:35:06 AM

"Obama remains a marxist. There are three classes. The ubber rich which make the laws and get to break them. The working class that supports everyone with high taxes. And the lower class of complete idiots aka useful idiots that will sing the praise of the upper class strangling everyone else."===
Change Obama to Bush and see how this reads.

Posted by: kseyetie | Jan 15, 2009 8:56:37 AM

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