Pulitzer Prize Winners: Geithner Far Worse Tax Evader Than Daschle

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Former Sen. Tom Daschle might have been forced to withdraw his name as President Obama's Health and Human Services secretary last week, but his tax problems were far less egregious than Timothy Geithner's, the man just confirmed as the Secretary of the Treasury.

In fact, according to Pulitzer Prize winning Vanity Fair contributing editors James Steele and Donald Barlett, Geithner's offenses were significantly worse because he "not only signed a paper acknowledging he owed taxes, he collected money to pay the taxes and then didn’t."

The pair were interviewed by Democracy Now's Amy Goodman Friday, and told their liberal host things about this matter few in the media would dare as it would be another embarrassment for Obama (video embedded below the fold with rush transcript):

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AMY GOODMAN, HOST: President Obama continues to be plagued by the tax problems of several of his nominees to top posts in his administration. Republicans have seized on the issue as an attack line against the Democrats. Representative Eric Cantor of Virginia, the House Republican whip, recently told a party retreat, "It's easy for the other side to advocate for higher taxes. Because you know what? They don't pay them."

The series of nominees with tax problems started with Timothy Geithner. As Treasury secretary, he now oversees the collection of taxes, but he failed to pay $34,000 in taxes until he received the offer of a cabinet job. Then there was Tom Daschle, nominated for secretary of Health and Human Services, even though he neglected to pay $128,000 in taxes until he was nominated. And there was Nancy Killefer, chosen to be the White House chief performance officer. She failed to pay unemployment taxes for a household employee.

Daschle and Killefer withdrew their names from consideration Tuesday after a firestorm in the media and on Capitol Hill. Geithner, on the other hand, was confirmed by the Senate last week.

This is what he told the Senate Treasury Committee at his confirmation hearing.

TIMOTHY GEITHNER: Senators, before I finish, I want to address directly the concerns many of you have raised about the mistakes I made in preparing my tax returns. These were careless mistakes. They were avoidable mistakes. But they were unintentional. I should have been more careful. I have gone back and corrected these errors and paid what I owed. I want to apologize to the committee for putting you in the position of having to spend so much time on these issues when there is so much pressing business before the country.

AMY GOODMAN: Despite the fact that Geithner sailed through the confirmation process, while Daschle went up in flames, Geithner's tax troubles were actually far more egregious. Well, at least that's the argument my two next guests put forth in their latest article.

Don Barlett and Jim Steele are contributing editors at Vanity Fair who have been writing about taxes for nearly four decades. They have won virtually every major national journalism award, including two Pulitzer Prizes, two National Magazine Awards. Their latest article appears in thedailybeast.com. It's called "Why Geithner Was Worse than Daschle." They are the authors of seven books, including The Great American Tax Dodge: How Spiraling Fraud and Avoidance Are Killing Fairness, Destroying the Income Tax, and Costing You. Don Barlett and Jim Steele join us in Philadelphia.

Welcome to Democracy Now!

JAMES STEELE: Good to be with you, Amy.

AMY GOODMAN: It's good to have you both with us. Jim Steele, let's begin with you. Why do you think Geithner's problems were actually worse than Tom Daschle's tax problems?

JAMES STEELE: Well, Daschle ended up having to pay far more in taxes than Geithner did, and neither one of these cases are forgivable or can be explained away easily. But the difference with Geithner is, I think almost every American knows that you have to pay Social Security and Medicare taxes. I think just the average person on the street who draws a paycheck knows that is taken out of their check. And that's what's so disturbing about Geithner's. If these were avoidable mistakes, if these were simply things he overlooked, I think the question is, why weren't those corrected at some point before President Obama had tapped him to be Treasury secretary?

This is the thing that's actually disturbing about both of these cases. Both Geithner and Daschle went back and paid these taxes, but only after their names were dropped into that hopper, which suggested they were going to be cabinet officers. If these were truly under those categories of those kinds of mistakes, the question is, why wasn't that done at some time in the past, especially in the case of Geithner, where he had been audited by the IRS for previous tax years and had paid some additional taxes at that time. It was only after he was suggested for the Treasury secretary and the vetting process began that he then remitted these additional taxes.

AMY GOODMAN: Don Barlett, explain further exactly what the taxes were that Tim Geithner paid and didn't pay and what the relation was to his work at the IMF, the International Monetary Fund.

DONALD BARLETT: Well, as Jim indicated, these are the payroll taxes-Social Security, Medicare-that everyone has to pay. And, you know, the tax code is complex. Everybody knows that. It is easy to make a mistake.

But the reason we said that Geithner's was far more egregious is this. He signed a piece of paper acknowledging that he owed both taxes while he was employed by the IMF. He then collected the money from IMF to pay the taxes. Now, most of us, you know, the payroll taxes are withheld. We don't get reimbursed for those taxes. It comes out of our own pocket. But Mr. Geithner not only signed a paper acknowledging he owed taxes, he collected money to pay the taxes and then didn't pay them and pocketed the money. This is why it was far more egregious for him and why-you know, the New York Times demanded that Tom Daschle withdraw, and he did. But the same demand was not put on Mr. Geithner.

And even more disturbing is the fact that only one Democratic member of the Senate Finance Committee voted against Mr. Geithner for this reason-for this reason. That was the Iowa Senator Tom Harkin, who said he just couldn't support it. And Harkin was right, because the message this is sending to the public of large-the tax system already is as close to collapse as you're going to get as a result of it not being enforced evenly. The double standard on tax law-as you indicated in the introduction, Jim and I have been writing about taxes for almost forty years. Our first series that won the Pulitzer Prize was on the unequal enforcement of the tax code. And that was back in the 1970s. And since then, it has exploded. And what is happening now in Washington just captures where it is now. Here you have the Senate Finance Committee approving this, and you have the Senate overwhelmingly approving it.

AMY GOODMAN: I just want to go back to that one point that you made about Geithner and what you wrote about in this piece in The Daily Beast. "According to the Senate Finance Committee, Geithner ‘filled out, signed and submitted an annual tax-allowance request with the IMF that states, "I wish to apply for tax allowance of US federal and state income taxes and the difference between the ‘self-employed' and ‘employed' obligation of the US Social Security tax which I will pay on my Fund income."'"

So the IMF actually gave him money for those taxes to pay, but he didn't pay them. When exactly did this come to his attention? And why is it now that he's paying them, Don?

DONALD BARLETT: Well, he wanted to be secretary of the Treasury. I mean, you want a top cabinet job, you've got to pay your taxes. I mean, it looks a little unseemly if you don't.

AMY GOODMAN: Right, it's clear why he's paying them now, but how long was it? I mean, it was called to his attention before this point.

JAMES STEELE: IRS did two-

DONALD BARLETT: Two audits.

JAMES STEELE: Two audits for a couple of those previous years. And he did have a settlement with them at that time. But it was not until his name was proposed for Treasury secretary that then the vetting-in that vetting process, he went back and looked at two other years, if I'm not mistaken, and it was on those, where the situation was very similar to the ones he had settled with IRS, that he then paid the taxes.

Fascinating, yes? And yet this man was confirmed with very little objection.

Would that have been the case if the press had done a better job explaining what Geithner's real tax evasion was?

Those interested in the pair's Daily Beast piece should go here.

—Noel Sheppard is the Associate Editor of NewsBusters. Follow him at Facebook and Twitter.


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IfDaschle had of been first out of the shoot,

 Then Geithner would most likely wouldn't have been confirmed. Of course, I don't think either of them should have been. Interesting interview. Last time I saw an interview on DN, it was Billy the Bomber and his sadistic wife Bernadine. O/T,  I know this is a little shallow, but do all those feminazi chicks have to be so homely? They all look like they would run screaming if you tried to put some lip lard on 'em.  And don't even get me started on that lanky grey hair!

 

 

All a Democrat needs is the upper-story window of public attention and the chamber pot of rhetoric. How else to explain the rise of Joe Biden?  P.J. O' Rourke

Wow, great read

Wow, great read here.

This is exactly why I have been furious with not only the msm, more-so the Senators, Hatch made me ill with his floor yak in defense of both of these men, I was very surprised when Harking did this, plus his words about all of this, like I posted elsewhere sometime back, it is a first I think for me....I agreed with Harkin for once.

What Geithner did was something any of us would be behind bars for by now ...and no repub would have ever made it 24 hours with the talking heads in the msm if they were in either of these mens shoes, nor would they have had any members in the Senate backing them.

What about Franken, has he ever paid what he owes, and he may be seated as a Senator yet, plus we have Rangel, who writes the tax bills...nada has happened to him, he hasn't even stepped down from his chair as head of Ways and Means.

It has all been simply unbelievable...and the msm stays mum. 

Rahmbo?

Rahmbo may also have a minor problem: "The White House chief of staff said this week that he did not pay rent during the five years he bunked at the Capitol Hill home of Rep. Rosa DeLauro (D-CT). But that raises questions whether Emanuel reported the rent-free lodging to Congress, since DeLauro is married to pollster Stan Greenberg. And will either of the parties report what could be “imputed income” to the IRS?"

http://www.nydailyne...

h/t Corner@NRO

slick... You came up with

slick...

You came up with another juicy tid-bit...another keeper to pass on.

I knew about Rosa and Stan, what each do and their marriage, in fact I think their daughter is very deep in politics, but thats an aside...what I didn't know was about Emanuel staying there for five years.

You wanna' bet there won't be much screaming from others in congress anytime soon?

Time to audit all of them/

Ah, the old.."The Republicans have seized.."

Amy Goodman grabs the m.o. of the national MSM... with good credit given to Amy for doing the piece, just the same.

"...Republicans have seized on the issue as an attack line against the Democrats.." (well, why wouldn't they? Is the MSM seizing on it yet?)

In almost every issue which is damaging to Democrats, if and when the MSM decides to report it, it's almost always done thru the lens of the "Republicans being on the attack." Usually, the MSM is not pleased with the attitude of the Republicans.

On the other shoe, when the issue is damaging to the Republicans, the MSM is quite at ease going after (investigating) the issue with conviction in their heart. In fact, most of their investigative reporting regarding politics, it would seem, is of Republican issues. When it's a Democratic issue, they report that the Repubicans are attacking. When they ask a Democrat about the issue, it's, "Republican are suggesting that you.....". When they ask a Republican about an issue, well ask Helen Thomas; "Mr. President. Why do you keep killing people. Mr. President, why don't you care about the children." Mr. Senator. Our investigation - our sources - tell us that you....." "Mr. Democrat. Those nasty Republicans are saying that you.... why won't they leave you alone?" 

The same old tactics of MSM

Gary I'm glad I read your comments before I posted mine. You saved me a lot of time, thanks ! I still can't believe how many people fail to see the tactic of leading questioning and leading statements.

It's an issue of an American citizen not paying taxes, getting caught and then delaying making the payment for as long as possible. The MSM spins it as Republicans are giving Democratic nominees a hard time over an income tax issue.

It's all in how you phrase the question or the comment.

No one would dare utter a question such as "Does it bother you that so many of President Obamas cabinet nominees are tax cheaters". Heaven forbid they would associate tax evasion and the media messiah. Instead it gets something such as "Republicans delay Presidential cabinet appointments over honest income tax mistakes made by appointees" (please pardon me while I vomit for even writing this statement as humor).

I just keep wondering how long the enchantment will last.

M. Blues --

I just keep wondering how long the enchantment will last?

forever, perhaps? When's the last time, in the MSM's love of bring up past political corruption did you hear them reference Bill Clinton's old pal, James Riady?

(;~> gary

Gary: Yes, I know :(

Gary, I'm sure the MSM great messiah message and the sterling portrayal of his "HOPE disciples" will not stop any time soon. I guess I naively had some HOPE for the truth.

everybody knows but won't say

It's fun and a little sickening, like the scary ride at the fair, to watch Daschle and Geithner lie like rugs.  The real story is both these guys see themselves as above taxes or see themselves as already having paid enough.  Both knew what they were doing.  They were trying to avoid paying taxes and would never have paid them had they not been nominated by The Messiah.  Geithner's arrogance is so obvious because he had the money to pay the taxes and put it in his pocket.  Unbelievable.  What is even more disturbing and unbelievable as that this lying tax cheat is the Secretary of the Treasury.  Only in the Chosen One's America could this kind of thing happen.  Had this been a Republican nominee he would have had no chance.  I don't think anyone is surprised by Dashle's malfeasance.  He has been an unctuous, prevaricating, cowardly, low-life who reminded me very much of of a whining little boy who either got his way or took his ball and went home.   

Vanity Fair???

I guess however it comes out, it's good.  This evidently is ringing bells even among the most dedicated democrats.  As has been pointed out numerous times in NewsBusters and other conservative press outlets like American Thinker:

Inspired by their recent behavior, I left a question on my corporate accountant's voice mail today. "Jim, I just want to know if I can simply pay taxes just the way the Chairman of the House Ways and Means Committee OR the incoming Secretary of the Treausurer pay them?"

He laughed, and replied "of course... as long as you don't mind doing some time."

Which is why the public is having trouble swallowing this- it's easy to understand, and it goes directly against everything Obama promised.

The Chairman of the House Ways and Means Committee and the U.S. Treasury Secretary  are literally the two highest ranking political figures with regard to the Internal Revenue Service.  If any two people on the planet should set an example in their tax behavior, it is the two people who hold those positions and anyone who aspires to them...

...

Charles Rangel and Timothy Geithner are apparently somewhat more casual about tax compliance, taking hypocrisy and irony to new levels in the process.

As the Chair of the House Ways and Means Committee, Rangel is literally the most influential member of Congress related to taxing and spending. As we found out in September, Rangel decided that he was above paying taxes on rental income on some houses he owned in the Dominican Republic

And as we found out days ago, the man appointed by Barack Obama to run the Treasury Department -- of which the IRS is a major part -- has also considered himself above the tax laws that haunt the rest of us.

Please understand these two people will have tremendous influence on how our tax laws are written and that they will expect every damned one of us to follow that 66 thousand page tax code to the letter. Or as Joe Biden would say, they expect us to "be patriotic" and to do so accurately.

And so we now have a GOP congressman introducing the "Rangel Rule" (h/t Rush): 

Americans may be able to rest a little easier this April if Congressman John Carter, R-Texas gets his way.

Rep. Carter introduced a bill Wednesday to eliminate all IRS penalties and interest for paying taxes past due.

The legislation calls for the creation of what he calls the, "Rangel Rule"...enabling citizens who fail to pay taxes on time to do so later with no additional fees.

As of September 2008 the Harlem Democrat reportedly paid back more than $10,000 in taxes but that did not include any IRS penalties.

"Your citizens back home should have the same rights and benefits that come to you as a member of congress. You shouldn't be treated any differently under the law than your citizens back home," Carter said.

He added that citizens should receive the "same courtesy" that the IRS is allegedly granting Rangel and Treasury Secretary Tim Geithner, who also recently acknowledged a failure to pay taxes.

Carter penned a letter to Rangel earlier this month requesting that he either pay the IRS fees or join him in co-sponsoring the legislation establishing the rule.

"As Chairman of the House Ways and Means Committee, I believe you set an example for all American taxpayers in your dealings with the IRS, and that you must do so in a way that enforces blind justice without regard to wealth or status," he wrote in the January 6th missive.

A spokesman for the New York Democrat would not comment on the state of the tax issue, which is currently under investigation by the House Ethics Committee, but did respond to the Carter bill.

"This legislation is unnecessary.

No surprise there, but the rest of the comment is a little hard to swallow:

All taxpayers currently receive equal treatment under the law," Rangel spokesman Emile Milne said. (my disbelieving emphasis!)

I was listening to Glenn Beck earlier today and he was talking about how there are now two sets of laws- one for the regular people who are not really important enough to merit special consideration, and the other set for those who are so important that if they were not in the positions of power that they hold, things would just simply fall apart.  Geithner anyone?  He also talked about how in the USSR, there were special traffic lanes reserved for party members only, as well as special stores and other perks.  Unfortunately the "citizen legislator" appears to absolutely be a thing of the past.  We seem to be entering a phase that reminds me of what I learned about Rome when the property owning citizens no longer were the ones making the laws.  Due to crisis, they appointed a supposedly "temporary" dictator, which eventually morphed into Julius Ceasar, and the age of the Emperors, ascension to the throne by lineage and all that that implies.  Good bye Republic.

"The future is not set.  There is no fate but what we make for ourselves."

michaelyon-online.com

nofate

You and Gary Hall continue to nail this stuff to the wall, plainly, simply, and spot-damned-on.

I may copy/paste this and send to all of my legislators....the double standard is beyond egregious.

 

Blonde

:-) 

"The future is not set.  There is no fate but what we make for ourselves."

michaelyon-online.com

nofate

Wish I knew you in real life.

And I also wish you were a Senator.

 

Blonde

:-)

Seriously, though, I could never be a senator.  Besides the anal exam that would expose the facts in my bio and more, I could never keep my mouth from getting me in heap big trouble long before any primary occurred.  Look what "maccaca" did for Senator Allen.  But thanks for the nomination.

"The future is not set.  There is no fate but what we make for ourselves."

michaelyon-online.com

zzzzzzzzzzzzzzzzzzzzzz

At the risk of sounding like a teenage girl, OMG!!! I have completely changed my view on the Fairness Doctrine after watching only the first third or so of that video. I don't know what medium this Amy Goodman is on but she's gotta go! It is entirely unfair to anyone that has to listen this woman! How did she get access to a microphone and camera? What a drone! And her guests... they couldn't provide a spark with a roman candle! One guy was actually twiddling his thumbs!

As to the substance, which has been articluated by every conservative radio and television host since the tax relevations on Geithner surfaced- clearly he should not have been confirmed and in my view, sailed through only because Republicans were still willing to give Obama's nominees a pass as right to winning the election, before he started pulling the "I Won" business. 

Typical of the left-wing press to Monday morning quarterback though- funny how this kind of thing doesn't come out before the confirmation.   

As this nation accelerates

As this nation accelerates along the path to socialism, I believe we are beginning to see the same societal divisions that are present in all socialist countries, which essentially are comprised of two groups:

The ruling class and everybody else.

In the former USSR, the ruling classes had their own stores to shop in, and if you were among the elite of the ruling class, you even had lanes on the roads that only you were allowed to drive in. There were lots of other perks, too.

I believe we are beginning to see that very same thing developing in this country, where the ruling class doesn't have to follow the same rules as we members of the peon proletariat.

And I still cannot believe Geithner's confirmation sailed right through the senate with hardly even a raised eyebrow among the republicans there.

This man should now be standing trial for tax evasion. Instead, he is now in charge of the IRS in what is fast becoming a joke of an Obama administration.

-Dave

Our clueless political leaders are about to drive us all over a cliff. The time to HITM is now-before we go over.

Spot On

And, the only one (I think), of the Dems that voted against Geithner, was Harkin!

WASHINGTON, DC -  Senator Tom Harkin (D-IA) released the following statement tonight after voting against Timothy Geithner to serve as Secretary of the U.S. Treasury.

“I strongly believe that, save in extraordinary circumstances, the President should have the right to select his own team.  President Obama believes that Mr. Geithner is the best person for this job, and it pains me to go against the President’s wishes on this matter.
           
“I believe that Mr. Geithner is a person of obvious talent and experience, and I bear no ill will toward him whatsoever.  However, after careful deliberation, I simply could not overcome my very serious reservations about this nominee for two reasons. Mr. Geithner made serious errors of judgment in failing to pay his taxes, and he made serious errors in his job as chief regulator of the financial institutions at the heart of the current financial crisis. 

“Nothing would make me happier than for Mr. Geithner to prove me wrong by serving with distinction. I wish him every success as Treasury Secretary - we will all be rooting for his success.”

His office phones must have been melting.  What do you wanna bet he ran this by Madame Pelosi and Reid first?  But this is the same Harkin who tried to silence Rush and has been in the thick if the attempts to re-implement the fairness doctrine:

Over in the Senate, Tom Harkin (D-IA) took a more subtle approach, attaching an obscure amendment to the massive Department of Defense budget authorization bill. Harkin’s amendment would have required a reinstatement of the Fairness Doctrine to the Armed Forces Radio and Television Service.

Thanks to the eagle eye of folks like the National Religious Broadcasters legislative staff, the Harkin mischief was stopped but not before it got all the way to a Senate-House conference committee. No wonder the NRB magazine recently observed that “some Members of Congress and pundits will most likely begin calling for re-instatement of this collectivist tool in the wake of a brutal election season” in the 109th Congress that just convened in January.

And bashed Rush for the phony "phony soldiers" comment.

What a stand up guy! (not)

 

"The future is not set.  There is no fate but what we make for ourselves."

michaelyon-online.com

A bit off topic, but

2 points - what kind of interest payments will be collected by the IRS, and do the 'common folk taxpayers' get the same deal? Can't WE say "I'm sorry" and get a pass on our little, hones mistakes too?

I'd now like to see a republican/conservative LEADER emerge and make the following proposal -
"We, the servants of the people, will lead by example, and like the CEO's of bailout companies, will now take a payroll cut of 50% for the duration of this crisis. We know that this will not in anyway stimulate the economy, but it is a gesture that the voters need in order to see we really do have their best interests in mind."

I would now wonder if Chrissy would get a tingle up and down his leg with that statement, and I wonder what the demolibs would say, or what excuses they would use to NOT take the cut - could be as interesting as the ride we are now on, due to the historical events of the past election.

There is no sense in being stupid, if you can't prove it! - my dad V

FastEd... Now that would

FastEd...

Now that would be PRICELESS!

If only....

By the way, if that did ever happen, he/she better make like Blago and make all the rounds of the television shows, more than once to-boot.

On the other hand, I wonder how many network shows would do that with a conservative with a cause.

ed, i actually remember a time...

...when our local government officials - from the city councilmen right on to the county commissioners and school board officials - did not accept compensation from the taxpayers for the services they were performing.  i'm not going so far as to write that they all did it completely out of a sense of public duty, but the great majority of the men and women who held those positions served with honor and integrity, and for the good of the community.  of course, that begs the question: these days, where would you find enough men and/or women with real honor and integrity to fill all the seats on the hill?

"When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle." Edmund Burke

Tax Cheater Geithner, as

Tax Cheater Geithner, as Treasury, oversees the IRS. He paid zero penalities.  Isn't the IRS goining to arrest Dacshele? Remember how, after the Clinton/Lewinsky affair that casual sex became the norm?  I predict that with Geithner and Rangle in charge of IRS rules, not paying taxes will become the norm. 

Of course Democrats want to raise taxes on all the 'little people', they don't have to pay any taxes.

Geithner was audited and

Geithner was audited and paid the back taxes for the years audited, but he did not pay Social Security/Medicare for the years that were past the statute of limitations. Because this was a ‘mistake’, no problem. But if Geithner intentionally failed to pay what he owed, that was tax fraud…. no statute of limitations.

My husband and I have paid estimated taxes for years. On the same 4 days each year we write a check and fill out the IRS-provided coupon and put both the check and the coupon in the IRS-provided envelope. And we are not reimbursed. This procedure is not rocket science.

Just try to convince me that Geithner is not a tax cheat.

No WONDER the Obama

No WONDER the Obama administration is so anxious to throw $1 trillion dollars of our tax money into the "bailout."

None of it is from them!

 

"Meet the new boss, same as the old boss..." - The Who

There is no way ...

There is no way that this character Geithner did not cheat on his taxes. First off, I don't believe he did his own taxes. Second, if he did do his taxes, then he should have been reading the instruction booklet (ignorance of the law doesn't cut it). They are very specific on what is wages and what taxes need to be paid. Third ,he signed a paper that he was responsible for his taxes, which kind of indicates that he was self-employed. It would be interesting to know if he received a 1099 instead of a W-2. Fourth, anyone who is self-employed must pay both social security and medicare which is 15.3%. For a person who works for a company, that company pays 7.65% and the employee pays 7.65% which equals 15.3%.

Based on what I know, IMO this guy, Geithner is a tax cheat and should be hauled into court, put on trial, and if found guilty put in jail. If guilty, he would be a felon and would not be able to hold the job.  That's my take on it.

Remember folks, Freedom isn't Free. It was bought with the blood and sacrifice of the men and women who are serving and who have served in the U.S. Armed Forces.

For those who fought for it, Freedom has a flavor that the protected will never know.

 

No, no, no... !

He didn't cheat, the tax code is just too complicated! That's why we need a guy that doesn't understand it to be in charge of it!

"I ask, Sir, what is the militia? It is the whole people. To disarm the people is the best and most effectual way to enslave them."
George Mason

Bolton/KEYES 2012