Geithner’s tax problem
Treasury Secretary-designate Timothy Geithner’s confirmation hit a snag when he admitted failing to pay some of his taxes while working for the International Monetary Fund. The fund does not withhold payroll and Social Security taxes from American employees’ paychecks. Geithner neglected to pay them himself and ended up owing $34,000, plus interest. The issue is an embarrassment for Geithner, who as Treasury Secretary would oversee the IRS. But it is not likely to derail his nomination.
The ‘death tax’ lives
Barack Obama intends to block the planned 2010 elimination of the estate tax, aides said. Under legislation passed during the Bush administration, the estate tax—known as the “death tax” to critics—was cut to 45 percent for estates greater than $3.5 million and slated for repeal in 2010. Under the Obama plan, the estate tax would remain at its current level.