Tax News

CCH (cch.taxgroup.com) reports:

  Timothy F. Geithner won confirmation in the Senate late on January 26 to serve as Secretary of the Treasury despite revelations about previous tax return errors involving self-employment taxes. Geithner had earlier told the Senate Finance Committee that his "[mistakes] were careless, avoidable, but completely unintentional" (TAXDAY, 2009/01/23, C.2). The Senate voted 60 to 34 to confirm the former Federal Reserve official. Geithner was sworn in immediately after the vote.

High Expectations

  Geithner's supporters expect him to playing a leading role in the economic recovery. "These are extraordinary times that require extraordinary action," President Obama said. Geithner will help Obama implement the pending $825 billion economic stimulus package along with overseeing disbursement of the remaining $350 billion in bailout funds authorized by the Emergency Economic Stabilization Act of 2008 (P.L. 110-343).

  "His portfolio, knowledge and skills make him uniquely qualified to serve and is sorely needed by the nation as we face the current economic crisis," Sen. Orrin G. Hatch, R-Utah, said before the confirmation vote. "He is intimately familiar with all arms of U.S. economic policymaking."

Opposition Lingers

  Geithner was able to overcome opposition from some powerful lawmakers, including Sen. Mike Enzi, R-Wyo., who, on January 22, echoed the thoughts of many taxpayers. "How do I explain to my constituents that I voted to confirm someone who will make them pay taxes, but sometimes does not pay his own taxes?"

Swearing In

  Geithner was sworn in as Treasury Secretary shortly after the Senate vote. President Obama and members of his economic team were in attendance at the swearing in ceremony at the Treasury Department. Obama made brief remarks, noting work must start immediately to repair the economy. Geitner said, "Treasury's tradition is to defend the integrity of policy, to respect the constraints imposed by limited resources, and to limit government intervention to where it is essential to protect our financial system and improve the lives of the American people."

  By Paula Cruickshank and George L. Yaksick, Jr., CCH News Staff