Hello Pot? This is Kettle. You’re Black.

Since the last couple days have been spent on taxes, I thought this would make some of us laugh, in that way we laugh when someone says something about our mom. You want to punch them in the face, instead you laugh and tell them with a smile, “Dude, don’t talk about my mom”. In a laughable turn of events Secretary of the Treasury Timothy Geithner issued a warning to all those out there that dodge your taxes.
 

Good old Timmy boy decided that when he addressed the House Ways and Means Committee the other day that he and the Obama administration will be going after people who evade and evade taxes in a very aggressive way. This was a prepared speech, not an off the cuff remark. He said the President is intent on “tackling tax shelters and other efforts to abuse our tax laws, including international tax evasion efforts.” I had to admit that my head went on a swivel because I couldn’t believe what I was hearing.

geithner-testifyingHe went on to say, “Over the next several months, the President will propose a series of legislative and enforcement measures to reduce such U.S. tax evasion and avoidance.” This comes in the wake of the Swiss bank scandal where it is estimated that between 19,000 and 52,000 Americans were sent a letter from the bank advising them that the bank was willing to help them take their earnings and put them out of the reach of the federal government. In the scandal UBS Bank helped thousands of Americans create fake accounts and avoid paying federal income tax on the money, to the tune of some $20 Billion. 

As you all know I don’t condone breaking the law. That being said, I often do understand why people do so. I don’t like illegal immigration, but I understand why someone trying to support their family comes across the border to do so. I don’t like someone selling illegal drugs, but I understand the economic realities that seem to force people to do so. I don’t like a mother taking a baseball bat to someone who was in court for molesting their child, but I understand the reason she would do so (Wait, maybe I do like her doing so). I don’t like people manipulating the election laws and stealing an election like Al Franken is doing, but I understand how the desire to “serve the people” is more important than some stupid constitutional law. Wait, scratch that last one too. 

OK, maybe I got too far away from serious towards the end of that last paragraph. I don’t like tax avoidance. But given the radical fervor the new administration has for increasing the amount of money they steal from the rich to give to the poor (by poor I mean the hard working Americans below the poverty level. I do not mean the welfare queens who squirt out kids to get more government cheese or the lazy folks who would rather sit on their ass than work hard and take care of their families. I mean no administration would suggest that we give those folks even more money, right??), I understand why wealthy Americans may be moving their wealth out of the reach of this new robber who wants to take even more of it.

But I digress here. Because the point is that the man who was speaking to congress and vowing to aggressively pursue those who evade paying their taxes to the federal government, Timothy Geithner, did not pay his taxes. To the tune of $34,000. No he didn’t use some evasion scheme. He just simply didn’t pay them. He claimed he didn’t know he had to pay them. The man who we have running our Treasury Department in the United States of America did not know he had to pay taxes on his earnings. Even when his accountant pointed out that he must do so, he chose not to. Talk about the pot calling the kettle black. 

A man that didn’t pay his taxes just went before Congress and vowed that he will lead the charge to catch those horrible people who don’t pay their taxes. Oh the gall of these piece of shit politicians.

Daschle-Confirmation HearingAnd before Mr. Hypocrite starts too far with this campaign against the dirty tax evaders, he had best think about what he is doing. Because it seems to me that a real investigation into all of those who evade paying taxes is going to find some things he doesn’t want found. Like the fact that probably more than half those doing so originate in the halls of Washington. I am not saying anything, but let’s review the administration’s recent cabinet picks…

Tom Daschle, Obama’s pick to be Secretary of Health and Human Services, had to bow out when it was disclosed that he had failed to pay $128,000 in back taxes. Nancy Killefer, who was appointed by Obama to scrutinize government spending for the OMB, also had to withdraw her nomination because of tax issues. And just a day before Geithner’s appearance in the House, Obama’s designated Trade Representative, Ron Kirk, told the Senate Finance Committee that he owed some $10,000 in back taxes that he had agreed to pay. Add to this Representative Hilda Solis, whose husband had some tax liens going back 16 years until the day before her committee vote as Labor secretary. But who in their right mind would hold a wife responsible for her husband’s financial problems, even if they did start the same year she was elected to the state legislature?

But hey, I am sure that these were all just anomalies right? And after all, they all, just like Geithner, once caught agreed to pay the taxes they weren’t paying. So it’s all good. I hope I get the same treatment if I ever legitimately mess up on my taxes. It is good to know that not playing by the rules at least gives me a 50/50 shot. 50% chance I will go to jail. 50% chance I will go to Congress. I like those odds.

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Comments

  1. I don’t care for defending Democrats or Geithner,but I can tell you that if you’ve never run afoul of the IRS over misinterpretations of the tax code,you are one lucky person.There are many kinds of income,and some are exempt from taxes.To make matters even worse,the income that is exempt from taxes is only exempt to certain qualified people.In many cases only portions of the income is exempt.I know of cases where even the IRS errs with it’s own interpretations.It’s people make mistakes.
    Case in point: A friend of mine had some logs cut on his property and declared the income under the appropriate tax schedule.The IRS told him he could not use this schedule and had to declare the money from the sale as regular income and pay the appropriate taxes and penalties and fees.
    This fight went on for the next three years until the problem was finally located and solved.Seems the woman that was assigned the case did not believe that any one individual could actually own enough land so they could cut wood on it.This is not a joke.This is exactly what happened.
    Now I believe that Geithner could easily misinterperet what income to pay taxes on.I have also done so and wound up paying back taxes,penalties and fees.Mine was an honest mistake.Many years ago I honestly did not know that single construction workers were not allowed to claim expenses like their married connterparts.Some of the married counterparts also got in trouble because they did not know that they were not allowed to claim expenses if they had been on the same construction job for all 365 days of the previous tax year.These are traps that many people fall into.Honest people.

  2. One comment for yesterday’s poster–Crimsonjihad–.During the Carter adminisrtration a luxury tax was assessed on yachts.It totally destroyed the entire East Coast boat building industry.

  3. Just as the Democrats would never look under the table skirt to see who actually caused the sub-prime mortgage mess (hello Barney and Chris), they will not investigate their own regarding taxes. This administration will in fact, put its enemies list together ie. anyone who disagrees with their policies and says so in public (like you and I on our blogs or people who set up Tea Parties or those on talk radio, etc) and go after them with a laser-like focus. There has been so much hypocrisy within the Obama administration regarding taxes, ethics, lobbysist, earmarks, etc.: whatcha wanna bet that they’re dying to dig up tax dirt on Republicans and others which they can hold up to the people and say “See they do it too!”. Anyway, please stop my blog afterwards and sign up to join the National Tax Day Tea Party in your area (April 15th). I’m organizing the RI tea party, but there are parties scheduled in EVERY state! http://www.timetorevoltamerica.com Thanks!

  4. G. A. Rowe says:

    Those who would tax us to death, do not wish to pay their own taxes is not unusual. After all, when you believe that you are better than anyone else . . .

  5. Geithner is a joke…this is the “only person” who can rescue us from the financial crisis we are in…I suppose if we all followed his lead and did not pay taxes we would do better…

  6. Karl from Esom Hill says:

    This is funny because I was a self emplyed painter back in the eighties. Being self employed I never had the money to pay the taxes during the year, not the money to pay at the end of it. Because I owed $3000 in back taxes, the gov’t applies the interest and penalties to the tune that I owed $16000 by the time it was all over with. Even though I was paying payments every month, the penalties were adding up faster than the payments. I actually owed only $200 one year but since all payments are put on the earliest year that you owe on, that amt had increased to over $3000 and I still hadn’t gotten to that year yet. I say this because as I understand it, Geithner, Dascle, and others didn’t have to pay those interest and penalties or it probably would have been much more that they owed. I think this is a very Appropriate name for this article. Lord knows, what’s good for you is not good for them! It’s also a case of do as I say, not as I do.

  7. Tax laws need a total overhaul. They are unfair and too complicated for the average citizen. Tax laws should be fair, equatable, and simple. Much talk has been made for a straight tax, but efforts fall on deaf ears. A straight tax makes good comon sense; everyone pays their fair share. Because it is based on a percentage of your income, the higher your income, the more you pay. No deductions–I earn this much and my taxes are this much. This could, quite possibly, eliminate the need for dodging taxes and puting more money into the Treasury. The IRS could be downsized, saving millions of taxpayer dollars. Win, Win situation.

    I would like to know the rationale for not considering this proposition. I don’t mind paying taxes; I do mind feeling robbed to pay for others self-imposed inability to provide for themselves (welfare).

  8. Keith E. says:

    The reason that we will never see a straight tax is that without the overly complicated system we have now, the politicians (both sides) would not be able to manipulate the loopholes and exemptions to get out of paying any taxes. If they simplified the tax code like that they would no longer be able to get away with their own special second set of rules that apply only to them.

  9. Ron (Comment #1 & 2): yes, I can see a real ‘honest’ mistake, as you suffered thru. However, when ‘Turbo Tax Tim’ signed on to work for the IMF, he was advised about paying that tax, and was compensated for it. He was reminded to pay it; but ignored the nudges he got from IMF. While I suppose it’s (REMOTELY) possible he made an ‘honest’ mistake; it is reeeaally much easier to believe it was not honest at all. He’s just better than the rest of us, above the law, above being taxed our ‘fair share’. Further, when he got nominated, he paid for the first two years (remember, there were four years involved). He was stretching so that he wouldn’t have to pay those first two years after all…until he got the nomination. Then, he was forced to, to be able to get this cherry job. Further, the position he was up for is to LEAD the IRS, the very entity he was so stumped by– after being warned and reminded that he had to pay those taxes– how can anyone– even on a whim– expect him to be able to manage it??? While what you say is correct about the complications of the tax code, your kind thoughts for Timbo are only that – kind.

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