Obama TreasurySec Failed to Pay Taxes

Posted: Jan 13, 2009 4:03 PM
Barack Obama's Treasury Secretary's confirmation hearing might not go as smoothly as planned.

Treasury Secretary-elect Timothy Geithner failed to pay at least $34,000 in taxes in addition to employing an illegal alien to do housework.

Geithner, who is on pace to run and control the Internal Revenue Service, did not pay his Social Security and Medicare taxes while working for the International Monetary Fund from 2001-2004. This triggered an audit by the IRS against him in 2003 and 2004.

Geithner also employed a woman with an expired green card to clean his house, according to media reports.

These transgressions were discovered by Republican Sen. Charles Grassley, who is the ranking member of the Senate Finance Committee, and will be overseeing Geithner's upcoming confirmation hearing.

Barack Obama's transition team says Geitner should not be punished for "honest mistakes."

Several Republicans, however, may see the chance to get a payback.

Republican Linda Chavez was eviscerated by Democrats when, in the run-up to her confirmation hearing to become President Bush's Labor Secretary, it was discovered she had hired a nanny who was an illegal alien.  She was forced to withdraw her nomination because of this.

See related stories from the Associated Press and the Wall Street Journal