Wednesday, January 14, 2009
Kris Alingod - AHN Contributor Washington, D.C. (AHN) - Treasury Secretary-designee Tim Geithner met with members of the Senate Finance Committee on Tuesday ahead of his confirmation hearing later this week about back taxes and a housekeeper whose legal working status had briefly lapsed.
The Senate panel released documents saying Geithner failed to pay Social Security and Medicare taxes while he worked at the International Monetary Fund (IMF) between 2001 and 2004. A 2006 audit by the IRS said Geithner had owed $17,230 in taxes, including interest, from 2003 and 2004.
Geithner also paid $25,970 in November last year after the Obama transition team, which was vetting him as a candidate for the Treasury post, found that he still owed the same taxes for 2001 and 2002.
The 47-year-old president of the Federal Reserve Bank of New York was also questioned about his housekeeper's immigration papers. Before she stopped working for Geithner and his family in October 2005, the woman had worked for three months with an expired Employee Authorization Document.
Geithner met with committee members two days before he sits before them in a hearing to confirm his nomination as successor to Treasury Sec. Henry Paulson. Committee chair Max Baucus was quick to re-iterate his support for President-elect Barack Obama's appointee.
"I am disappointed in the errors found in Tim Geithner's tax returns and other information, but I am satisfied that Mr. Geithner has taken the steps necessary to fix these problems. That's why I intend to move forward as soon as possible with a hearing on his nomination," Baucus said in a statement.
"The President-Elect needs a Treasury Secretary on day one. We have to roll up our sleeves and get this economy moving again for the American people, and Tim Geithner has the right combination of experience and skill for these difficult economic times. For these reasons, I continue to support his nomination to be the next Secretary of the Treasury," he added.
Obama also issued a statement through incoming White House press secretary Robert Gibbs calling the issues "an honest mistake" and Geithner "the right person to help lead our economic recovery during these challenging times."
"He's dedicated his career to our country and served with honor, intelligence and distinction. That service should not be tarnished by honest mistakes, which, upon learning of them, he quickly addressed," Gibbs said. "He made a common mistake on his taxes, and was unaware that his part-time housekeeper's work authorization expired for the last three months of her employment. We hope that the Senate will confirm him with strong bipartisan support so that he can begin the important work of the country."
Confirmation hearings for Obama's appointees began last week with Health Secretary-designee Tom Daschle. Sen. Hillary Clinton (D-NY), who has yet to officially resign from the Senate, sat before the Foreign Relations Committee on Tuesday. On Thursday, when Geithner's hearing is held, Arizona Gov. Janet Napolitano as secretary of Homeland Security, former Colorado Sen. Ken Salazar as Interior Secretary, and Susan Rice as ambassador to the U.N. will sit before various Senate panels about their appointments.
Considerable attention will be devoted to Eric Holder, Obama's choice for attorney general. The Judiciary Committee holds his hearing on Thursday at 9:30 am ET.
Holder's confirmation hearing was originally scheduled to start last week.But Republican concerns about his approval of the controversial presidential pardon of fugitive and Democratic contributor Marc Rich eight years ago had forced committee chair Patrick Leahy (D-VT) to delay his hearing.
As deputy attorney general, Holder approved former President Bill Clinton's 2001 pardon of Rich, a commodities trader convicted of 65 counts of tax evasion and illegal arms deals with Iran during the hostage crisis.
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