Since we all know that the tax laws can be very complicated, perhaps this will simplify it.
On your paycheck every week, you pay income taxes, medicare taxes and social security taxes. Your employer, also pays income tax, medicare tax and social security tax on your employment. We all know this.
Those folks that are self employed cover both portions of taxes. You pay as an employer and employee.
International companies, like the one Mr. Geithner worked for, IMF, expected Mr. Geithner to pay both the employer part of the taxes and the employee part of the taxes in full to the IRS.
IMF then cuts a big ol' fat check to the you to cover for what normally would be the employer part of taxes. You are reimbursed for the companies part of the tax that you paid to the IRS.
When doing his taxes from 2001 to 2004, the "mistake" that Mr. Geithner made was that he only paid the employee part of the taxes, but never paid the employer's part of the tax.
Mr. Geithner was given a big ol' fat check for paying the employer part of the taxes to the IRS, only Mr. Geithner never paid the employer part of the tax. Instead, Mr. Geithner pocketed the money.
This is no longer just a simple case of overlooking a problem. On numerous occasions, IDF reminded their employees how the process worked.
Most of the mainstream media are ignoring the full and complete story right now. However, there is enough of a problem that the Senate will not move forward with confirmation hearings until after Obama's inauguration. Certainly would not want to taint the new president before he is inaugrated.
What I do not understand is how so many people are making excuses. America's financial future will be put in Mr. Geithner's hands and they guy appears to have more that a simple mistake for four years straight.
Wouldn't you ask questions if a big check showed up in the mail for your company?
Byron York and Michelle Malkin are on this. Figures that only conservatives are chasing this right now. The Wall Street Journal seems to be on it but are not really explaining it in simple terms that everyone can understand.
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.”
For someone with the brains and the experience in our Treasury department to not know that he was breaking the law, do we really want this guy in charge of our IRS?
I know we all want an instant fix to our current economic problem, but is this acceptable to most normal Americans?
Can you hear the Obama bus backing into place to claim its next victim? Beep-beep-beep