The Geithner rules

In my last post I alluded to the problem created by appointing a Treasury Secretary who has taken a casual approach to the tax laws.  A couple of comments to that post follow up on that issue.  Specifically, does Geithner's compliance level set a new de facto standard?  How does the IRS justify higher penalties or stricter enforcement against "ordinary" taxpayers for the same conduct.  How does it enforce strict rules against its own employees?  What other kinds of conduct does the Geithner rule apply to?

I also noted the relevance of the "Apple Rule" of non-prosecution of important or well-regarded executives.  Is there now a comparable rule for government appointees?  When do misdeeds that used to be disqualifying no longer count?  Do the same rules apply to Supreme Court appointments?  Republicans? 

I can't make up my mind whether this nomination is more appalling for its arrogance or its stupidity.

And as for the argument that we need somebody in place as soon as possible, I have seen little evidence over the last few months that the economy has been helped by having a Treasury Secretary.  How about if we trying getting along without one in this administration?

Comments

[Stephen G. Barone]

Here’s a guy whose résumé lists the presidency of the Federal Reserve Bank of New York, and whose attendant credentials—we are to assume—make him competent to be the titular guardian of our national treasure.

Yet, we’re to believe that he forgot about Social Security and Medicare taxes when he filled out the old 1040, which are intimately, affectionately, and collectively known as the Self Employment, or SE tax, by the 11 million or so people in America who don’t earn their living working for somebody else.

The SE tax is extremely straightforward to understand, even if you’ve only graduated from Dartmouth and have an M.A. in International Economics from John Hopkins. As a matter of fact, just type “Self Employment Tax” into Google, and handy & helpful Web page will appear at the very tippy-top of the listings to tell you all about it, which is the kind of search engine result that tells you 11 million or so others have visited here before you.

Call me a cynic. But I think Timothy saying he just forgot about the SE tax—from 2001 to last fall—stretches the parameters of credulity. Or more prosaically, he’s full of bull. You know it. I know it. He knows it.

But since when is being notoriously feculent in spirit and morality a detriment to one’s suitability for government service? Actually, it’s a credential. The Senate has vetted Timothy Geithner, and they have found his ethical predilections to be totally reasonable by their own standards.

No surprise there.

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