Geithner Was Reimbursed for His Taxes

by Sal on January 15, 2009

in Politics

Yesterday we reported that Treasury Secretary Nominee Timothy Geithner failed to pay $42k in taxes between 2001 and 2004.  Since then, it has been discovered that he not only didn’t pay some of his taxes for several years running, but that he was reimbursed for those taxes by his employer, the International Monetary Fund.

Because of its global nature and for tax reasons, the policy of the International Monetary Fund (IMF) is to not pay the FICA tax for employees, and have them pay the payroll taxes for Social Security themselves.  The FICA (payroll) tax is typically paid in two parts.  50% of the tax is paid by individual employees.  The other 50% of the tax is typically paid by the employer.  Those who are self-employed pay the entire FICA tax themselves.

Since the IMF does not pay the employer-portion of the FICA tax (or, for that matter, withhold any taxes), Geithner was responsible for paying it himself.  Yet, for four years running (2001-2004) he did not pay this tax.  However, the IMF, for its U.S. employees, reimburses their employees for the FICA tax.  So not only did Geithner not pay the tax, but he also received a reimbursement for the tax he did not pay.  In receiving the reimbursement, Geithner would have had to sign a form which was explicit that he did have to pay that tax:

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 did indeed sign the form, according to Byron York at National Review.  Nominations have been torpedoed for less.  The Obama administration seems intent on pushing his nomination through, but if this were a Republican Administration, would Geithner even have a prayer at being confirmed at this point?

{ 1 comment… read it below or add one }

Southern Girl January 16, 2009 at 3:55 pm

Disgusting. That’s all I can say.


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