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Illegal Hire, Tax Issues May Trouble Geithner

GOP's Grassley on Treasury nominee's case ahead of hearings

By Ambreen Ali,  Newser User

Posted Jan 13, 2009 3:14 PM CST

(Newser) – Timothy Geithner’s Treasury secretary nomination could be threatened by allegations he hired illegal help and didn’t pay Social Security and Medicare taxes while self-employed, the Wall Street Journal reports today. Senate Finance Committee members are meeting privately to discuss the issues, raised by GOP Sen. Charles Grassley. Aides to President-elect Obama insist the infractions are minor.

The housekeeper in question continued working for Geithner after her papers expired, but later obtained a green card. As for the taxes, Geithner paid them off when alerted by the IRS about the mistake. While no charges were filed in either case, such hurdles have been enough to keep past nominees from being confirmed; Geithner’s confirmation hearings begin Thursday.

Similar issues have derailed past nominations. President Clinton lost his first two attorney general picks because they allegedly didn't pay for household help.
Similar issues have derailed past nominations. President Clinton lost his first two attorney general picks because they allegedly didn't pay for household help.   (AP Photo)
Geithner's merits for the top Treasury post have been widely praised.
Geithner's merits for the top Treasury post have been widely praised.   (AP Photo)
Geithner, left, meets with Sen. Harry Reid. The financier has spend most of his career managing financial crises.
Geithner, left, meets with Sen. Harry Reid. The financier has spend most of his career managing financial crises.   (AP Photo/Manuel Balce Ceneta)
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COMMENTS
Showing 3 of 3 comments
Newser001
Jan 13, 2009 8:58 PM CST
I don't care much for Obama's indifference or attitude on this matter... If this is the type of statesmanship he inferred to, its not what I signed up for. I believe Geithner’s Treasury secretary nomination should be dropped. We now Do we live the double standard? Obama is now beginning to show he's nothing more than a politician - And that's not good. Something I'd expect from Blago. Perhaps its something one picks up from Illinois? For the first time, I can truly say, he's disappointed me. Stop the BS train Obama, NOW.
Guest
Jan 13, 2009 5:36 AM CST
Hum, his housekeeper wasn't deported, and legally obtained her green card. Mitt Romney's lawn care company hired illegal immigrants. Geithner has paid his income taxes, albeit late-- but he probably paid a nice penalty for that. Many large corporations who's officers live here in the US incorporate out of country so they don't have to pay any taxes. Where is the outrage about this? Seriously, this is a non issue for the majority of Americans who only want to have the chance to have a better life for themselves and their children. Let's all pray that the American dream isn't mortally wounded by the outgoing administration and their supporters.
Guest
Jan 13, 2009 3:28 AM CST
Yet another Obamistake. "...hired illegal help and didn’t pay Social Security and Medicare taxes while self-employed." If this nominee were a Republican, the mainstream media would have pronounced him DOA and been dancing on his grave already.

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