Given that I had heard about the tax problems of Treasury Secretary nominee, Timothy Geithner, about three times this evening without once hearing them described, I thought I’d post a summary of his non-payment of taxes as reported by the Wall Street Journal:
The tax issue relates to Mr. Geithner’s work for the International Monetary Fund between 2001 and 2004. As an American citizen working for the IMF, Mr. Geithner was technically considered self-employed and was required to pay Social Security and Medicare taxes for himself as both an employer and an employee.
The IMF and World Bank reimburse employees, including U.S. citizens, for their U.S. income taxes, and make payments on a quarterly basis to cover those liabilities. They don’t, however, make contributions toward Social Security and Medicare taxes, which individuals are expected to pay on their own.
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