January 14, 2009
Posted: January 14th, 2009 04:45 PM ET
Barack Obama's team says Tim Geithner, left, quickly addressed the mistakes he made.
Barack Obama's team says Tim Geithner, left, quickly addressed the mistakes he made.

WASHINGTON (CNN) - President-elect Barack Obama defended his Treasury Secretary-designate Tim Geithner on Wednesday amid reports that Geithner failed to pay the correct amount on his taxes for a time and employed a housekeeper whose work authorization had expired.

Watch: Obama defends Geithner

Obama told reporters he did not think the controversy would jeopardize Geithner's confirmation. "Tim Geithner, when I nominated him, was rightly lauded by people from both sides of the aisle, from the market, from labor, as somebody who was uniquely qualified."

Obama said it was an embarrassment for Geithner, president of the Federal Reserve Bank of New York, but called it "an innocent mistake."

"It has been corrected. He's paid the penalties. ... So, my expectation is that Tim Geithner will be confirmed. And my expectation is that he is going to do an outstanding job on behalf of the American people," he added.

Geithner received immediate backing from Republican Sen. Lindsey Graham of South Carolina, who met with Obama on Wednesday.

Geithner "has a great resume," Graham said. "I don't see any desire by the Republican Party to play 'gotcha' on something like this. We need a new secretary of the treasury who understands where this country is at financially and has a game plan to move forward. I think he's the right guy."

But other Senate Republicans are demanding more answers on the issue.

Full story

Filed under: Barack Obama • Obama transition • Timothy Geithner


Mark, B'ham., Al.   January 14th, 2009 9:52 pm ET

Geithner is Obama's disciple, if he was a republican the media would have hounded him to withdrawl as they did Bush's proposed Labor Secretary in 2000. Also,the judiciary committee needs to ask Holder to define terrorism since his legal brief for Chaquita said that dealing with the FARC was not supporting terrorism.

Brian   January 14th, 2009 9:39 pm ET

This does not seem like an "innocent mistake." It was a SERIES of mistakes over seven years. What is appalling is that the IRS even audited the Secretary-designate and was unable to audit all the years he did this. Making it seem like he "voluntarily" amended his returns and paid the taxes implies some dispute over law. The law is clear and he broke it.

IRS employees are fired if they don't file or don't pay their taxes. Too bad the Secretary of their department isn't held to that standard.

Change I can belive in? This isn't what I signed up for - it's just more of the same.

Larry   January 14th, 2009 9:28 pm ET

Chicago style politics-–NOW PLAYING IN WASHINGTON, DC

libs be dopes   January 14th, 2009 9:25 pm ET

Joe the Plumber fails to pay tax...........he gets nailed to the wall.

Tim Geithner fails to pay tax.........promote him.

Chicago style politics at its best!

Tracey @ 629   January 14th, 2009 6:46 pm ET

And here begins another rushpublican idiot.

Give me a break!   January 14th, 2009 6:44 pm ET

I say...but Suze Orman in charge. We'll be out of this mess by Easter!

Paul Thompson   January 14th, 2009 6:37 pm ET

Maybe he'll support the Fair Tax!

Reid   January 14th, 2009 6:36 pm ET

If this guy can't get his own income taxes correct, what business has he to be managing the U.S. Treasury? He is clearly unfit for office.

Jenny   January 14th, 2009 6:35 pm ET

Don't you just love how Obama says, "It has been corrected. He has paid the penalties," as if that is all corrupt politicians have to do if they are working for him...but let them be a republican and he can't shout for change fast enough. What a hypocrite! The only way America will ever get honest and fair representation in the White House is to put a Christian Woman...go Palin!

howie   January 14th, 2009 6:33 pm ET

Perhaps Obamas change meant "we may have to change some of my cabinet picks" Does not look good for him, even before he takes office!!!!!!

Robin   January 14th, 2009 6:32 pm ET

Last year, I made a small honest mistake on my tax return. I paid it immediatly, ($600), but my penalties were not waived. Why not?

Tracey   January 14th, 2009 6:29 pm ET

And here begins another corrupt US President.

Dan, TX   January 14th, 2009 6:28 pm ET

If he is a bad nominee, the republicans will not vote for him. If he is a good nominee the republicans will vote for him and then no one will be able to complain about it. Let the republicans on the committee decide. The democrats should abide by the decision of the republicans on the committee.

My understanding is that the republicans support him. I wonder why?

just in time!   January 14th, 2009 6:26 pm ET

I think Geithner was using the same logic Obama used, when he decided to pay his old Harvard Law parking tickets, right before he announced his presidential campaign!

Bea   January 14th, 2009 6:26 pm ET

Obama being blamed for someone else not paying their taxes...lol.

Larry   January 14th, 2009 6:22 pm ET

I hope that the government will look as favorably at everybody who is involved in tax evasion,and employing illegal aliens.Finally ,I see the change you have been talking about.

Dan, TX   January 14th, 2009 6:18 pm ET

Would it matter to you if he paid an accountant to do his taxes for him and they screwed up and he didn't even know about it?

Irritated in Fl   January 14th, 2009 6:13 pm ET

OMG! They won't let us comment on it but the presidential Limosine is a freaking PIMP Mobile! Our country has sunk to such a low, low....looooow.

Jon in Denver   January 14th, 2009 6:08 pm ET

it's only "an innocent mistake" when it's a democrat.

daniel cabrera   January 14th, 2009 6:08 pm ET

Here is the thing, If this guy cannot have his own records straight logic dictates is not a legitimate person to handle the 'taxpayers check book',...don't you think?

But then again this kind of people is the 'Obama -brand' , right?
Don't say 'no' to the reality,...this administration is CORRUPTED ALL THE WAY TO THE CORE!...and does not have a clue what to do with absolutely anything....and will not work for the peolple, for they have self-interests ok?,...so DO NOT EXPECT DIFFERENT!

But you people wanted, and so you people went out of your way to use FRAUD, EMOTION, INTIMIDATION, CORRUPTION AND MORE CORRUPTED PRACTICES TO PRESERVE MORE OF THE SAME CORRUPTION.
Well,....you wantred Obama?,...EAT OBAMA NOW!

sincerely,
Daniel Cabrera
Merrillville, Indiana

Rick   January 14th, 2009 6:04 pm ET

YES WE CAN....cheat on our taxes.

Paul from Kissimmee   January 14th, 2009 6:04 pm ET

I understand what some of you are saying in a way, but shouldn't our Treasury Secretary not make this kind of mistake? If he was appointed by a Republican, I can only imagine what this board would look like.

Dennis   January 14th, 2009 6:04 pm ET

As a CPA I can honestly say these aren't "mistakes". He covered it up in an attempt to get away with fraud. Any big CPA firm would have known how to file his taxes unless there was something they weren't made aware of. Just your typical scum bag politician. It's kind of like how Obama made a big stink about getting rid of Bush's tax cuts. It's not going to happen, he lied just to get votes.

Barb   January 14th, 2009 6:01 pm ET

jackie you don't have the facts either! He was audited in 06, for taxes of 03 and 04.....He paid those including penalties.....he had that position in 2001 and 2002 so common sense tells you, gee I owe that as well (he was sent notices) When Obama nominated him those taxes came to light and he was told again to pay.......a little late I would say 2001 taxes being paid at the end of 08? The issue here is he should have known! If your dentist has rotten teeth would you find a new dentist??

usualone   January 14th, 2009 5:59 pm ET

Are there other equally qualified people to be treasury secretary? Mr. Geithner may be wonderfully qualified, but isn't his appointment going to be great fodder for those who oppose Mr. Obama? His mistake may be innocent, however considering the specific cabinet post I can see these blogs going on forever and the hate-mongers will florish.

KR   January 14th, 2009 5:58 pm ET

This is about as simple as it gets. Geithner is clearly unqualified to be Treasury Secretary. He will never have the trust of the American public.

John in Ohio   January 14th, 2009 5:58 pm ET

Here's what I have a problem with:

In 2006, the Internal Revenue Service audited Geithner for tax years 2003 and 2004, and he paid $16,732 for the taxes and interest for those years, the statement said. After Obama nominated him for treasury secretary, Geithner voluntarily amended his taxes for 2001 and 2002, paying $25,970 for those taxes and interest.

If he paid back taxes in 2006, why didn't he pay them all? Because the IRS didn't make him. When he's nominated he knows they're gonna want him to pay more. If he had not been nominated, he never would have paid!!!! Honest only when you have to be is not the kind of people we want running the country!! Sorry Barack, I like a lot of what you do, but you're wrong on this one.

Opal   January 14th, 2009 5:57 pm ET

If .... just maybe ... they should have looked at Bush's appointtee in the same way and just maybe we would not be in this mess. I am sick and tired of those tired republicans, perhaps in two years we will get the rest of them out.

scdemocrat   January 14th, 2009 5:56 pm ET

So I guess all of you right wing whackos on here didn't vote for McCain ,since he was a tax cheat as well right? Remember he "forgot" to pay his property taxes for years. Also,quit with all the fake outrage. Where was all your anger during the last 8 years of Bush appointing people like Brown to run FEMA ,whos only experience was in judging arabian horses ? Elections have consequences people, deal with it.

Houston   January 14th, 2009 5:55 pm ET

He's the wrong man for the job. Everyone can see it, why can't you?

Jackie in Dallas   January 14th, 2009 5:52 pm ET

One more thing, just because someone is bound to bring it up, his housekeeper had proper documentation when she was hired. It ran out while she was employed and before she got married. That actually isn't the fault of the employer, but the employee. She now is once again legal, and has her green card. Again, considering the number of illegals hired as nannies, maids, cooks, gardeners, etc. by our politicians, this was pretty much of a non-issue, and was also properly reported over a month ago.

Jackie in Dallas   January 14th, 2009 5:48 pm ET

Oh, and April, Matt, Ranjit, Phil, et.al.: it wasn't that he didn't pay any taxes, he paid the wrong amount. Read, research, and THEN respond. He's not a moron, neither is he a crook. Just hope some day you get audited...pleading ignorance doesn't work with the law OR the IRS! Maybe having someone who has been burned by our overcomplicated and convoluted tax system in charge will make some difference in how future tax forms and documents are written!

Ernie in LA   January 14th, 2009 5:44 pm ET

He should not have made this kind of mistake in the first place. It took him 4 years to realize the mistake? He ain't too bright.

Pat in Atlanta   January 14th, 2009 5:44 pm ET

READ PEOPLE. He paid his income taxes. the problem was when he worked for the IMF, which unlike almost every other employer in the US does not collect Social Security and Medicaid taxes. How many of you sinless stone throwers check to be sure your employer collects them?

To quote the admirable sentiment of Sen Graham R-SC this is not time for gotcha.

But the whole mess demonstrates how badly we need to simplify and clarify our tax code.

Jackie in Dallas   January 14th, 2009 5:39 pm ET

Guys, the guy isn't a tax cheat, he made an easy mistake to make. If you ever have to file using a 1099, you will understand. Last I checked, there were something like 30+ forms for filing 1099, and it is easy to pick the wrong one. And the one you chose will affect the amount you pay. Even tax experts at the IRS couldn't tell me which one I needed! When told that his taxes were in error by the IRS, he paid the taxes, penalties and interest without even an appeal (how refreshing is THAT?), then voluntarily reviewed the two years prior, found the same mistake, and promptly paid the difference on those, as well.

What I like is that even though he probably had an accountant or accounting firm doing his taxes, he took responsibility, righted the situation, and didn't try to cover it up. The Senate has known about this for over a month.

You probably are just not familiar with government officials that take responsibility for mistakes without denying them or trying to blame someone else. He has bipartisan support, is knowledgable, and capable. So, hey, let him get on with the job!

Linda Lu-Nordling   January 14th, 2009 5:38 pm ET

what's Not on the Resume can get ya'

Buddy   January 14th, 2009 5:37 pm ET

Their all crooks. Put Tony Rezko in charge,

Rick   January 14th, 2009 5:35 pm ET

This is outrageous. The democrats and their media co-conspirators are glossing this over and calling it an "honest mistake". I have a better word for it...felony.

Change you can believe in!

Don't Tread On Me   January 14th, 2009 5:35 pm ET

A person would be ENTRUSTED to oversee and direct the US TREASURY simply isn't qualified when he makes this type of INNOCENT MISTAKE.

It took the IRS to put him straight?
How did he mange to work for a government entity and forego the debit of PAYROLL/ Soc. Sec. WITH HOLDING TAXES from his paycheck?!!!!!!!!!!!!!!

april   January 14th, 2009 5:28 pm ET

If this was an honest mistake it means that Geithner is a completely incompetant moron.Who thinks they can work for 4 years and not pay taxes? This is just another tax evader like Rangle, these people lack the personal ethical standards ,that the rest of America is expected to display. There is no get away from filing taxes for the poor person making minimum wage , they don't pay -they go to jail.This is disgusting, just more of the same dirty Chicago politics.

tom   January 14th, 2009 5:24 pm ET

I see a hypocritical liberal apologist gets the first post...right Charlie?

Merle   January 14th, 2009 5:24 pm ET

The American People gave him this power for him to choose whom he deems fit...LET HIM...Lets see what this guy is gonna do!

Steve   January 14th, 2009 5:21 pm ET

Maybe so, but two nominees with issues! The controversies are stirring storms that are distracting from the real hard core issues that are facing all Americans!!

Charlie in Maine   January 14th, 2009 5:21 pm ET

Republicans finally care about the character of cabinet members.

Now that is Change I can believe in.

Phil   January 14th, 2009 5:19 pm ET

So a guy who "forgets" taxes for a few years and has an illegal working for him is an ideal candidate for Sec. of the Treasury? Come on, everyone knows that Washington is dirty, but at least most of the dirt is swept under the carpet so Joe Public doesn't know about it. This dirt comes out and you still want him in? Give me a break Obama. You should have asked him nicely to rescend his nomination. I don't care if you are dem or republican...these candidates need to be clean. What's that catch word??? Oh yeah, Change....hahahah!

Matt   January 14th, 2009 5:19 pm ET

Putting a tax cheat in charge of the treasury is as dumb as putting a person with no record of leadership skills as president. Ohh wait...

ranjit   January 14th, 2009 5:16 pm ET

What kind of precedent will the treasury secretary bring to the table? Here is a guy who is supposed to look over treasury department but just failed to pay the tax for 3 years. Just a small distraction, right?

Comments have been closed for this article

subscribe RSS Icon
About The Ticker

The latest political news from CNN's Best Political Team, with campaign coverage, 24-7. Sign up for our twice daily Ticker emails. Got a news tip or feedback? For complete political coverage, bookmark CNNPolitics.com.

CNN=Politics Screensaver

CNN=Politics ScreensaverTap into the power of The Situation Room. Download this powerful new tool that keeps you posted on the latest political news from the campaign trail.
Download (4.1 MB, PC only)

twitter
Categories
Powered by WordPress.com VIP