Jan. 14 Update: "AP's Early-AM Revision Flushes Many Details, Calls His Tax Problems 'Goofs'"
Timothy Geithner, pictured at right in an AP photo, is Barack Obama's nominee for Treasury Secretary.
Mr. Geithner will, among many other duties, oversee the Internal Revenue Service.
How odd, to say the least, that Mr. Geithner has had persistent tax filing and payment problems going back over 15 years involving self-employment taxes for both himself and his paid help, as well as with the employment of someone who for a time did not have proper legal status to remain in the country.
You would think that such things might place a cabinet nominee, especially to head Treasury, in jeopardy, and to cause the president who nominated him to have second thoughts. After all, in 2001, Linda Chavez's nomination as Labor Secretary went down in flames over matters relating to an illegal immigrant whom Chavez had sheltered in her home a decade earlier. Also, in 1993, Zoe Baird withdrew as Bill Clinton's nominee for Attorney General over the employment of illegal-immigrant domestic help and her failure to pay the related employment taxes on a timely basis.
But Geithner's nomination is apparently getting the all clear, with pliant Republicans giving the okey-dokey, and press outlets like the Associated Press giving his problems the relatively no-big-deal treatment.
Here are some excerpts from tonight's AP story by Brett J. Blackledge (stored here for future reference when there are subsequent updates; 5 AM Update: The link did indeed change; an alternate link that seems to match what AP had up at its own site at the time of this post appearance is here):
Interviewing President-elect Barack Obama for Sunday's This Week, ABC's George Stephanopoulos zeroed in on criticism of including tax cuts in the “stimulus bill” and repeatedly pressed Obama about naming a special prosecutor, a 9/11-like commission or at least getting “your Justice Department to investigate” what an e-mail Stephanopoulos showcased on screen described as “the gravest crimes of the Bush administration, including torture and warrantless wiretapping.” On taxes, Stephanopoulos demanded: “Do you really believe those business tax cuts are going to work to create jobs?” He soon yearned: “But you might give up on some of the business tax cuts?”
Stephanopoulos put this e-mailed question up on the screen from “Bob Fertik of New York City,” failing to note he's a left-wing activist with “Prosecute Bush & Cheney!” at the top of his Web site: “Will you appoint a special prosecutor (ideally Patrick Fitzgerald) to independently investigate the gravest crimes of the Bush administration, including torture and warrantless wiretapping.?” As Obama expressed reticence, Stephanopoulos pushed for alternatives to drag national security officials into the legal process: “So, no 9/11 commission with independent subpoena power?” Not giving up, he offered another way to go: “So, let me just press that one more time. You're not ruling out prosecution, but will you tell your Justice Department to investigate these cases and follow the evidence wherever it leads?”
Nobel laureate on arcane trade matters, former Enron adviser, and New York Times columnist Paul Krugman is at it again.
In his latest Times column ("The Obama Gap"), he chides President-elect Barack Obama for not being ambitious enough in his stimulus plan, and, heaven forbid, for including tax cuts in the mix. He complains that Obama is only committing to much less than half of what's necessary.
On his program on Monday evening, CNN anchor Lou Dobbs criticized the proponents of the theory of manmade global warming in response to a report by correspondent Ines Ferre about the latest climate data: “[T]hey bring this thing to a personal belief system. It’s almost a religion, without any question...” He went on to criticize the “crowding out of facts and objective assessment of those facts...there’s such selective choices of data as one discusses and tries to understand the reality of the issues that make up global warming.”
Dobbs set the tone early as he introduced Ferre’s report, which began 41 minutes into the 7 pm Eastern hour of the CNN program: “The issue of global warming is, of course, a controversial and divisive topic, and it has been such for some time....Either way, somebody gets offended. Well, tonight, relax, we have another report for you, and all of who you believe in global warming will be challenged, and the facts, if you’re not interested in the facts, you shouldn't pay attention, as Ines Ferre reports.”
Climate realists around the world have contended for years that the real goal of alarmists such as Nobel Laureate Al Gore and his followers is to use the fear of man-made global warming to redistribute wealth.
On Monday, one of Gore's leading scientific resources, Goddard Institute for Space Studies chief James Hansen, sent a letter to Barack and Michelle Obama specifically urging the president-elect to enact a tax on carbon emissions that would take money from higher-income Americans and distribute the proceeds to the less fortunate.
The eco-socialism cat was let out of the bag on page five of a PDF Hansen published at Columbia University's website on December 29 (emphasis added, h/t Britain's Guardian, file photo):
On Wednesday's "Good Morning America," fill-in host Bill Weir and reporter Dan Harris touted the benefits of New York's proposed 18 percent obesity tax on soft drinks. Weir teased the segment by enthusing, "One official says making you pay more could actually save your life later." Harris repeatedly played clips from New York's state health commissioner, Dr. Richard Daines, who created a YouTube video to promote the tax.
After one such snippet, the reporter parroted, "No one likes taxes, he says. But this one, he argues, is actually good for you." At another point, Harris touted how this tax would "save" New Yorkers money and noted the nanny state advantages such extra cash would create: "But Dr. Daines insists this new tax will save people money. Not only on overall obesity-related health care costs, but he also says if everyone in a family of four drank one can less of soda a week, they would save $100 a year."
Matthews was such a perfect poster boy of the DNC media, he merited his own category this year: the "MSNBC = Maudlin Sycophantic Nutty Blathering Chris Award." The winning quote came from Matthews gushing over Obama's convention speech back on August 28. Perhaps referring to the grief he took for admitting to the "thrill" running up his leg earlier in the year, Matthews defiantly declared: "I’ve been criticized for saying he inspires me, and to hell with my critics!"
The ostensible subject was Caroline Kennedy. But in the course of, you know, discussing Kennedy's foundering effort to, you know, be anointed senator, Mika Brzezinski said something of more enduring interest. The Morning Joe co-host provided a telling glimpse into the liberal mindset, as Brzezinski cast her vote for Big Mommy government.
Host Joe Scarborough observed that New York Gov. David Paterson was letting Kennedy twist in the wind. Rather than spending his time taxing everything in sight, the guv would be better off appointing Caroline or someone else, so the new senator could hit the ground running once Hillary is confirmed as Secretary of State, opined Scarborough.
That's when Mika made her pitch for taxes as a tool for reforming those not living the lifestyle approved by the latest member of the Lititz landed gentry.
In its year-ending double issue Newsweek couldn't resist injecting liberal media bias into its mini obituaries entitled "Remember Them Well."
Yet the newsmagazine seemed to forget, perhaps intentionally, the left-of-center politics of prominent liberals profiled while using terms like "far-right" to describe the politics of deceased conservatives such as Paul Weyrich.
But wait, there's more, Newsweek used the occasion to link the civil rights struggles of the 1960s with the fight for same-sex marriage and to approve the first President Bush's breaking of the "no new taxes" pledge.
Take Studs Terkel, the hard-left Communist journalist who passed away at age 96. Newsweek ignored his political leanings, euphemizing them by referencing his "working-class empathy and patient, guileless style [that] helped a confused nation speak its mind."
Feeling a little bailout fatigue? Tired of the assault on the taxpayer from the federal government to pacify those influenced by the United Auto Workers? CNBC's Larry Kudlow feels your pain.
Call this red meat for the troubled anti-bailout soul. Kudlow, now performing a role as a co-host on CNBC's mid-morning program "The Call," blasted the Union Auto Worker, President George W. Bush, Treasury Secretary Henry Paulson and anyone else associated with $17.4 billion in loans for auto companies announced earlier today on Dec. 19.
"This is a full-up pooper scooper for the American taxpayer, which now owns General Motors," Kudlow said. "We're going to have a GM cabinet. Barack Obama is going to be the new car czar because Bush basically pushed this pooper scooper his way."
It's special treatment for automakers, according to a former airline executive.
Gordon Bethune, the former CEO of Continental Airlines (NYSE:CAL), now a CNBC contributor, told CNBC's "Squawk Box" on Dec. 19 the political process is being substituted for what otherwise should be a bankruptcy judge in determining the fate of the big three automakers.
"Wow, what makes them exempt from reality? What are the bankruptcy laws invented for?" Bethune asked. "I mean - if it works in airlines, works in steel - what's the matter with these guys? Why not have a judge decide instead of the political process? And, you know - you get some fairness in the federal court, so there's no excuse for this whole debacle I don't think."
In an article outlining the ridiculousness of New York State Governor David Paterson's budget proposal tax hikes, CNN misleadingly led with the following statement (emphasis mine throughout):
A budget plan by Gov. David Paterson that would plug budget shortfalls by slashing spending and raising taxes on items from sugary soft drinks to iTunes downloads is drawing criticism in New York.
Paterson may have proposed lower spending comparatively with year's past, he may have reduced spending, but he most certainly is not ‘slashing spending.'
A majority of today's politicians have completely abandoned the concept of slashing spending, Democrats and Republicans alike. Out of control spending is the very crux of our current economic crisis. So, how a mistake like that, while seemingly innocuous, could pass the proofreading staff at CNN is a mystery.
"Five pages into Goldman's earnings report this week, Bloomberg News noticed Goldman's very subtle announcement that the firm's effective tax rate this year was 1 percent," Maddow said. "One percent - they paid 1 percent in taxes. Even though they were down this last quarter, they made $2.3 billion in profit this year."
"You can see that even in Europe, some of the climate concerns, given this, this once in a lifetime recession, John - to put someone that, an advocate of such strong measures," Kernen said on "Squawk Box" Dec. 11. "Really I've seen her called Brownies or Brownistas. Um. That's a little scary with what's happening right now."
Earlier Kernen was discussing cabinet appoints with CNBC Washington correspondent John Harwood and pointed to new regulations Browner could institute:
During an interview on CNN’s “No Bias, No Bull” program on Tuesday, New York Times columnist Thomas Friedman expressed his confidence in President-Elect Obama’s “vision” for environmental policy and urged that the future executive be given “means...that are as radical as its ends” to carry out this policy: “...[I]t’s great to say we’re going to have green jobs and green homes and green-collared jobs to re-insulate people’s homes, install solar panels. Those jobs won’t get taken up unless you change building codes around the country. So...I think, the challenge for President-elect Obama will be to have the standards, regulations, the means that are as radical as its ends so we can really achieve those ends.”
Host Campbell Brown devoted two segments to her interview of Friedman. During the second segment, Brown brought up “Obama’s attempt to take on the enormous environmental challenges facing the country and the world.” She first asked the Pulitzer Prize-winning journalist if the president-elect’s plan for creating green jobs was “visionary” enough and if he has “the leadership ability to get this done.”
The Washington Post is directing a December 8 plea to the incoming Obama administration. The Post wants to raise the federal gas tax so high that it will stop people from driving. The Post thinks this will serve our national security purposes and add more money to rebuild our nation's roads. Apparently, the Washington Post has the foolishly mistaken notion that federal gas tax receipts actually go where our Congress initially claimed it was going to go; our nation's roads. In fact, nearly half of the federal gas tax receipts goes to pork instead of roads and infrastructure.
But, despite the waste by government, here is the Washington Post trying to soak America's drivers even more by suggesting Congress raise the federal gas tax by 46 cents a gallon. The Post thinks that recently falling gas prices offers a "golden opportunity" for the government to emulate Europe and pile taxes high on each gallon purchased. The Post is obviously unaware that the US did not become the greatest nation on earth by emulating Europe!
"Stingy," was what the UN deputy Secretary General called Americans for our response to the Asian tsunami a few years ago. His comparison conveniently ignored our private contributions, which dwarf anything governments have to offer, especially in Red States. (It also ignored the fact that the US Navy was the only instrument delivering anything approaching actual aid, as opposed to notional aid, which consists of meetings about aid rather than aid itself.)
So it should be a matter of concern when the Colorado Non-Profit Association issues a report claiming large declines in Colorado's charitable giving between 2005 and 2006. The average family's charitable giving declined from $4075 to $4046.
The failure of American media to properly vet the political beliefs of Barack Obama during the just concluded presidential campaign was on full display Sunday when the president-elect made clear just how much of a socialist he really is, and did so with nary a challenge from "Meet the Press" moderator Tom Brokaw.
Makes you wonder what the results might have been on November 4 if the press had done its job in exposing Obama's radical economic beliefs rather than attacking Joe the Plumber for suggesting he had them, and how much differently his appearance on "Meet the Press" would have gone Sunday if the moderator wasn't completely on board with these left-leaning philosophies.
Such is important when considering Obama's comments previously reported by NewsBusters here and here as well as a truly telling statement by the president-elect that working for your own financial benefit is "not good for anybody" (video available here):
Given the flap that ensued when he famously told Joe the Plumber that he wanted to "spread the wealth," I figured Barack Obama wouldn't be making such a suggestion again anytime soon. I figured wrong.
Pres.-elect Obama to Tom Brokaw on today's Meet The Press:
I think the important principle, because sometimes when we start talking about taxes, and I say I want a more balanced tax code, people think, well, that's class warfare. No. It turns out that our economy grows best when the benefits of the economy are most widely spread. And that has been true historically.
"Talk about too big to fail," said managing editor of Time Richard Stengel on MSNBC's "Morning Joe" Dec. 4, who was on the program promoting the latest cover story for the magazine entitled, "The Case for Saving Detroit." Stengel:
"I find the fact that so many Americans are unsympathetic to Detroit to be kind of amazing," Stengel said:
We make the case that in fact the, you know, the Big Three have adapted in a lot of ways ... They haven't managed things well, they have too much capacity, but I mean, talk about being too big to fail in a way, right?
The fact is Americans don't understand what collateralized debt obligations are, yet they sort of said, ‘Okay, let's bailout all of these banks and AIG' and yet people feel like, ‘Hmm what about the big car manufacturers?
In the interview for Wednesday’s Barbara Walters Special on ABC with Barack and Michelle Obama, excerpts of which were also shown on Wednesday’s World News with Charles Gibson, Walters asked few questions that put the Obamas on the defensive, in contrast with her January 2001 interview, aired on 20/20, with then-President-elect Bush in which she challenged him on a number of fronts. Most notably, she seemed to chide Bush for choosing John Ashcroft as Attorney General because he "openly opposes abortion," and claimed that Ashcroft was "not considered a friend to civil rights." She asked Bush about reports that, as governor of Texas, he "spent relatively little time studying specific issues," and "only does a few hours of work" a day. The ABC host also challenged Bush from the left on the trade embargo against Cuba, and even asked Laura Bush if her more "traditional" plans for her time as First Lady would be a "setback for women." It is also noteworthy that Walters asked Bush about his plans for dealing with Saddam Hussein and cited "people in the know" who contended that the Iraqi dictator was "stronger than ever."
Have you noticed that whenever a liberal media member discusses budget deficits he or she always blames tax cuts and the wars in Iraq and Afghanistan?
Yet, spending on items referred to under the broad category of Human Resources -- which, by the way, represents 64 percent of our current expenditures!!! -- is always completely ignored.
Such was the case Tuesday when the Associated Press published an article placing all the blame for our current budget deficits on the Bush tax cuts as well as the wars our nation is waging (h/t Jeff Poor):
Neil Cavuto and Ben Stein had quite an argument about bailouts on FNC's "Cavuto on Business" Saturday morning that nicely covered the issues people on both sides of this contentious debate will likely be discussing around dinner tables this Thanksgiving, though hopefully with less screaming:
Remember the years of media flak President George W. Bush received for his alleged use for political gain of first the terrorist attacks of September 11, 2001 and then the related Afghanistan and Iraq Wars?
Will the press be as vociferous now? Incoming Obama Administration Chief of Staff Rahm Emanuel, speaking on Wednesday on and to the Wall Street Journal Digital Network, stated outright his desire to make political hay with the ongoing travails of the U.S. and global economy:
"You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before."
Wonder why President-elect Obama resigned from the Senate so early (while Vice President-elect Joe Biden remains an active member) and is hanging back, not wading into the debate over bailouts etc, and naming candidates for nearly every Cabinet post save Treasury (the man or woman who will have $350 billion to dispense when he/she walks through the door)?
It appears being bestowed a Nobel Prize for economics doesn't improve one's economic acumen, for in the course of roughly 60 seconds Sunday, Paul Krugman said Franklin D. Roosevelt's decision to raise taxes in 1937 deepened the Depression, but it's okay to raise taxes 70-plus years later when the economy is in trouble.
Interesting contradiction, wouldn't you agree?
What precipitated this bizarre, almost instantaneous economic flipflop on Sunday's "This Week" was ABC's George Will bringing up a little history by stating that net investment was negative throughout most of the 1930s because of the uncertainties about the economy and government's activist role during that period.
Nobel Laureate Krugman took issue with this premise (video embedded below the fold, relevant section at 6:57):
So what exactly is the government doing with your money? Fox Business Network's Alexis Glick would like to know.
Treasury Secretary Henry Paulson announced Nov. 12 he would be redirecting the $700 billion bailout to focus on propping up financial institutions instead of buying troubled mortgage assets, which was the original intent of the rescue plan.
Glick, the host of FBN's "Money for Breakfast," told the CBS's "The Early Show" Nov 13 that the Treasury Department's move away from the original plan to buy up troubled mortgages "does not make sense" and was "actually pretty outrageous":
[T]he markets responded to that yesterday ... Look, the original intent of this Troubled Asset Relief Program was to purchase troubled assets. And I think the marketplace started to adjust several weeks ago when we started to see the size and magnitude of the capital injections.
Can I have permission to utter the S-word ("socialism")?
Ken Thomas's Associated Press report today (link is dynamic, subject to change, and will probably be gone in a week) on auto industry bailout ideas emanating from Washington includes these items, all of which expand soc- ... soc- ... socialism:
Legislation proposed by Barney Frank involves the government taking ownership stakes in the companies.
Lawmakers want to use funds that were meant only for the financial sector bailout.
A note that the current bailout is over and above the $25 billion in government-guaranteed loans that has already been approved for "development of fuel-efficient vehicles."
News that auto industry suppliers want in on the bailout action
The United Auto Workers wants a separate $25 billion "to help cover future health care obligations for retirees and their dependents."
British premier Gordon Brown, a former chancellor of the Exchequer -- analogous to the U.S. Secretary of the Treasury -- delivered a thinly-veiled entreaty to President-elect Barack Obama to eschew trade protectionism in a November 10 speech, reports Kevin Sullivan of the Washington Post Foreign Service. Post editors buried Sullivan's 18-paragraph article on page A15:
LONDON, Nov. 10 -- Prime Minister Gordon Brown on Monday warned that trade protectionism would worsen the global financial crisis, a remark widely perceived as aimed at U.S. President-elect Barack Obama.
In a speech lauding the "global power of nations working together," Brown called for "rejection of beggar-thy-neighbor protectionism that has been a feature in transforming past crises into deep recessions."
Obama's campaign rhetoric struck some allies as protectionist, particularly his calls for tax incentives to discourage companies from relocating jobs away from the United States.
Showing once again that its opinion pieces serve a dual purpose as a news source, a Monday Wall Street Journal editorial noted that Democrats have quietly dropped a central plank of their successful 2006 effort to gain a congressional majority (HT Hot Air):
Late last week the leader of the House Blue Dog Coalition, Tennessee Democrat Jim Cooper, announced that with Barack Obama about to enter the White House, "I'm not sure the old rules are relevant anymore." Why not? Because, Mr. Cooper said, "It would be unfair to the new President to put him in a budget straitjacket."
Democrats ran on "paygo" in 2006, promising to offset any new spending increases or tax cuts with comparable tax increases or spending cuts. Once in charge on Capitol Hill they quickly made exceptions, waiving paygo no fewer than 12 times to accommodate some $398 billion in new deficit spending -- not that the press corps bothered to notice.
The Journal then goes on to explain what Paygo was really all about: