Tim Geithner Appears in Tax Trouble

Or rather, the lack thereof, for several years while he worked for the International Monetary Fund.

Additionally, Tim Geithner apparently employed an immigrant housekeeper who briefly lacked proper work papers. I suppose the word briefly might be helpful, as the issue is really that her employment authorization expired three months before she quit working for Geithner's household.

Because of the issues, rather than a hearing, Tim Geithner had a closed door meeting with members of the Senate Finance panel, who will confirm, or reject, his nomination.

Several senators proclaimed they would still back him. Support even including GOP support, such as Sen. Orrin Hatch of Utah:

“I still support him. He’s a very, very competent guy.”

With regard to Medicare and Social Security taxes, the IMF, as an international organization, does not withhold Social Security and Medicare taxes from its American employees’ paychecks. Those workers are supposed to to pay tax themselves, as if they were self-employed.

According to reports, Geithner’s accountant told him he was exempt from self-employment taxes (according to Obama transition officials).

A tempest in a teapot? Apparently Geithner volunteered to amend the earlier returns and pay the taxes and interest, a total of $25,970, after Mr. Obama indicated that he wanted to nominate him for the Treasury job.

Hopefully this will be resolved soon, as making it right is simply, it would appear, be a matter of writing a check. Still, what would a nomination be without controversy.