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Senate Confirms Geithner To Head Treasury

UPDATED WITH FULL ROLL CALL AND NON-VOTERS:

Tim Geithner was confirmed as Treasury Secretary moments ago by the Senate by a vote of 60 to 34, making him the successor to Hank Paulson and the man charged with leading the U.S. out of a global recession.

Geithner, the head of the New York Fed and a Treasury official under President Clinton, was confirmed despite the embarrassment caused last week by his botched tax returns from 2001 - 2004.

Quick recap: While working at the International Monetary Fund, Geithner was audited in 2006 and found that he failed to play self-employment tax in 2003 and '04. He immediately paid those taxes but did not go back to check his 2001 and '02 returns, in which he had also not paid the self-employment tax. He did not pay those back taxes until confronted by President Obama's vetting team last year.

The 60-34 margin was the closest since World War II, Bloomberg said.

Here's a partial list of senators voting against Geithner. The Ticker is missing one name; we'll get it tomorrow when the official roll comes out:

- Lamar Alexander (R-Tenn.)
- John Barrasso (R-Wyo.)
- Robert Bennett (R-Utah)
- Sam Brownback (R-Kan.)
- Jim Bunning (R-Ky.)
- Richard Burr (R-N.C.)
- Robert Byrd (D-W.Va.)
- Saxby Chambliss (R-Ga.)
- Tom Coburn (R-Okla.)
- Thad Cochran (R-Miss.)
- Susan Collins (R-Maine)
- Jim DeMint (R-S.C.)
- Michael Enzi (R-Wyo.)
- Russ Feingold (D-Wisc.)
- Chuck Grassley (R-Iowa)
- Tom Harkin (D-Iowa)
- Kay Bailey Hutchison (R-Texas)
- James Inhofe (R-Okla.)
- Johnny Isakson (R-Ga.)
- Mike Johannes (R-Neb.)
- Jon Kyl (R-Ariz.)
- Richard Lugar (R-Ind.)
- Mel Martinez (R-Fla.)
- John McCain (R-Ariz.)
- Mitch McConnell (R-Ky.)
- Lisa Murkowski (R-Alaska)
- James Risch (R-Idaho)
- Pat Roberts (R-Kan.)
- Bernie Sanders (I-Vt.)
- Jeff Sessions (R-Ala.)
- Arlen Specter (R-Penn.)
- John Thune (R-S.D.)
- David Vitter (R-La.)
- Roger Wicker (R-Miss.)

Not voting:

- Kit Bond (R-Mo.)
- Sherrod Brown (D-Ohio)
- Ted Kennedy (D-Mass.)
- Ron Wyden (D-Ore.)

-- Frank Ahrens
The Ticker is Twittering!

By Frank Ahrens  |  January 26, 2009; 7:00 PM ET
Categories:  The Ticker  | Tags: Geithner, Paulson  
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Comments

Yeah, put him in there. I am still annoyed he did not pay his taxes when due. Guess he will always have an asterisk next to his name, like the athletes who use steroids. 60-34 is no mandate, is it?

Posted by: Bitter_Bill | January 26, 2009 6:39 PM | Report abuse

62,000 jobs lost in the last month...and the Republicans vote against putting the president's choice to head the Treasury Dept. The bitter partisan politics have returned...thanks to McConnell and Boehner.

Posted by: jjedif | January 26, 2009 6:42 PM | Report abuse

Tim Geithner = Tax cheat

Posted by: Phil6 | January 26, 2009 6:43 PM | Report abuse

I would like to know how many of those 34 senators who voted against Mr. Geithner do their own taxes. It warms my heart to know that the man now in charge of the IRS has had first hand experience in dealing with the convoluted tax mess congress has created over the years.

Posted by: b_100666 | January 26, 2009 6:44 PM | Report abuse

So 34 Senators care about politics more than our country. Interesting barometer...

Posted by: mbmclaughlin | January 26, 2009 7:02 PM | Report abuse

I can't believe that our "representatives" confirmed this guy. Those that voted nay at least have principles unlike those with the power. Thugs beget thugs.

Posted by: Bardip | January 26, 2009 7:19 PM | Report abuse

So 34 Senators care about politics more than our country. Interesting barometer...

Posted by: mbmclaughlin | January 26, 2009 7:02 PM
-----------------------
At least 34 senators chose not to vote for a man who made a conscious decision to not pay his taxes for four years. If he is so sharp with finances, how did that happen? He saw a loophole and took it.

Posted by: mafox1 | January 26, 2009 7:19 PM | Report abuse

SO SO NOT RIGHT. YOU MEAN TO TELL ME THERE ARE NO GOOD FINANCIAL LEADERS OUT THERE WHO DIDN'T USE TURBO-TAX AS AN EXCUSE TO LIE ABOUT THEIR TAXES AND OWE THE IRS, THE VERY AGENCY THAT AUDITED HIM 40,000 IN BACK TAXES-AND ONLY PAID THE LAST OF IT WHEN HE WAS DRAGGED INTO IT BY VIRTUE OF HIS NOMINATION?

FOR SHAME, CONGRESS-I'LL REMEMBER WHO VOTED FOR GEITHNER, THE TAX CHEAT-I HOPE EVERYONE ELSE DOES TO-COME ELECTION TIME-THOSE VOTES FOR THE WRONG PEOPLE AND THE WRONG ISSUES WILL WORK AGAINST YOU, YOU KNOW.

Posted by: farfalle44 | January 26, 2009 7:21 PM | Report abuse

The reasons given for voting against this guy are pure BS. He paid his taxes, he paid the penalties for the screw up, so what. The rational that he was involved in the system when it went tits up is so stupid. Those same senators voted for the legislation that opened the doors for the exploitation of the system by the bankers and wall street hacks. Virtually all repukes supported deregulating the system, and increasing leverage from 12 to 1 up to 40 to 1. They are the problem trying to pawn it off onto regulators is BS.

Posted by: qcdude3 | January 26, 2009 7:22 PM | Report abuse

Geithner is now a member of an elite club who's famed alumni was Al Capone. Accept Al spent his time for not paying his taxes on an island in the middle of San Francisco Bay called Alcatrez. Geithner on the over hand was praised and given a plush goverment position of being in charge of the tax collecting agency.

Way to go Obama. Might I suggest Ayers for FBI director.

Posted by: captain3292 | January 26, 2009 7:22 PM | Report abuse

The Republicans could afford to record a vote against Geithner knowing that his nomination was not in danger. Geithner failed to read the information sent to him by the IMF. The IMF sends the information because without it people don't know to pay their social security taxes. Geithner's accountant did not pick up on the problem either. Neither did the IRS's computers. Given that all the information the IRS needs is on W2 forms, that failure is the real disgrace.

Posted by: dnjake | January 26, 2009 7:26 PM | Report abuse

Hey, it was more than Rupublicans, JJEDIF!

I'm pleased that MY senator voted against his confirmation. Do you really want the President of the United States to have the power to appoint whomever he want without a vote? And do you really expect that all senators will agree? It didn't work that way when Bush or Clinton or any other president was making appointments, why should it not occur with this one? Over 57 million people did NOT vote for Obama, so it is perfectly REASONABLE that 34 senators would NOT vote for one of his appointments. ESPECIALLY an appointment who is a freaking TAX CHEAT!!!

Posted by: PartySandwich | January 26, 2009 7:26 PM | Report abuse

By the way . . .

"The Ticker is Twittering!"

Is that some gay code language?

Posted by: Bitter_Bill | January 26, 2009 7:28 PM | Report abuse

I think that it is wonderful that President Obama's choice for Treasury Secretary doesn't believe in paying taxes. Neither do I. I further suggest that the the Attorney General have experience as a resident of the prison system so that he thoroughly understands his job requirements. The list could go on and on. And let us never forget that VP Biden learned how to plagerize while still a law student.

Posted by: Jonsk | January 26, 2009 7:30 PM | Report abuse

This is like deja-vu-all-over-again...

In the run up to the Iraq war, we had zero critical thinking by the collective borg of buffoons on Capitol Hill. Result: We let Mr. Bush worm his way into "making his case" for a war that never should have been. Now the bufoons are so in love with the current Borg King in DC they actually confirmed a tax cheat? Result: Your guess is as good as mine, but clearly it bodes unwell for the country to have a tax cheat running the Treasury Department.

When are the idiots on the Hill going to learn? After 9-11 they whistled happily as they followed Bush down the slippery slope to Iraq. Now it appears they are more than willing to do the same thing -- all... over... again...

Scary. This is so very scary.

Posted by: randy_boyd | January 26, 2009 7:30 PM | Report abuse

That's just great. It really sets the standard for taxpayers and IRS employees. I am an IRS employee and I am encouraged to tell the the taxpayers to utilize e-services with companies like Turbo Tax etc. If the average joe is expected to know how to use it and get it right how can the TREASURY SECRETARY use that as an excuse? Either it was intentional or he is incompetent. There is no excuse. If anyone applying for an IRS job conventionally had that record THEY WOULD NOT EVEN BE CONSIDERED FOR THE POSITION and that is grade 5. VERY disappointing :(

Posted by: GAILNY818 | January 26, 2009 7:36 PM | Report abuse

Another Obama mishap allowing Geithner to continue his bid, and thus confirmation, as Treasury Secretary. Didn't Obama say he was going to run a tight ship and would not put up with baggage as such in his administration that Geithern brings? Blah, blah, blah Obama. So many promises broken in the first week... Change? Nope - it is the same old stuff - just another character sitting on the throne of the WH. When are you people going to wake up and learn?

Posted by: PittAlum | January 26, 2009 7:48 PM | Report abuse

Unfortunately the Congress continues to display no backbone and we get a sleaze as part of the 'change.' Thanks

Posted by: KBlit | January 26, 2009 7:48 PM | Report abuse

Tim Geithner is so brilliant that he can't figure out how to use $19.99 Turbo Tax!!

Posted by: Phil6 | January 26, 2009 7:49 PM | Report abuse

I can't believe this SOB tax evading crook is being put in charge of collecting my taxes. Sounds like business as usual.

Posted by: matrox | January 26, 2009 7:49 PM | Report abuse

Disgusting, the double standards here. If this same guy was a Bush appointee, all his defenders commenting in here would quickly forget their "bipartisanship" in a nanosecond. Seriously, think about it. According to most people here, Republicans are "evil" and can't be forgiven. Democrats can break any law because they are "morally superior".

Posted by: thuff7 | January 26, 2009 7:50 PM | Report abuse

People make mistakes. Get over it. Tim Geithner is an exceptionally intelligent man, but, what some of you evidently have forgotten is that he is not a trained economist. He skills are not in developing economic models or equations, but rather in analysis and synthesizing opposing policies into a more nuanced and effective version of its constituent parts. He has a B.A. from Dartmouth and an M.A. from Hopkins, please do not insult this man's intelligence.

Posted by: BeltwayBorn | January 26, 2009 7:52 PM | Report abuse

62,000 jobs lost in the last month...and the Republicans vote against putting the president's choice to head the Treasury Dept. The bitter partisan politics have returned...thanks to McConnell and Boehner.

Posted by: jjedif | January 26, 2009 6:42 PM

---------------
You are kidding right? First, some dems rightfully joined some republicans in voting against his confirmation. The reality here is that the majority of dems and republicans made the wrong decision in giving the President what he wanted. They should have stood up and voted him down for his at best careless actions -- actions that if people who now work for him had done would have denied them a job or have been a career ending move. The simple fact is that the majority of the senate used partisan politics to support this flawed nominee. If the situation had been reversed, I guarantee you that the same people who voted "yes" today would have voted "no". They are the partisans, not those who did the right thing today!

Posted by: sagedutch | January 26, 2009 7:53 PM | Report abuse

GAILNY818! You Rock! so true, so true!

I put tax evaders on the same level as child abusers. I despise them! I was really really trying to be optimistic about his new president and the change and transparency he promises....but this is an early indication that it was indeed campaign and Inaugural Speech bullshoot!

Posted by: PartySandwich | January 26, 2009 7:59 PM | Report abuse

Why are some of the commentors complaining that some Republicans voted against Geithner? Aren't they happy that they have the majority and don't even need the Republicans? Aren't they happy that everything that occurs will be the Democrats responsibility now and they don't have George W Bush to blame or kick around? It seems they are now going to insisted that everyone vote yea for all things the Dems put forth and no one in this country should have a negative say against anything. Now that sounds close to a dictatorship but then that is change, isn't it.

Posted by: curious3 | January 26, 2009 7:59 PM | Report abuse

Let financial games begin. You ain't seen nothin' yet until ole Geithner gets to play with your money.

Posted by: PalmSpringsGirl | January 26, 2009 8:06 PM | Report abuse

Sometimes it takes a thief to catch a thief.

Posted by: OldCoot1 | January 26, 2009 8:12 PM | Report abuse

I am furious about this confirmation! When are we going to wake up and stop putting up with this crap in Washington??? If either you or I had made that error on our taxes, WE'D BE IN JAIL! Why are we putting up with this??? We have GOT TO START making our voices known to our elected officials!!! America....STOP being so damn apethetic about what our politicians are doing!

Posted by: clefnotekids | January 26, 2009 8:13 PM | Report abuse

It would be interesting to hear from Russ Feingold about why he voted against Geithner.

I suspect the reason does not include forgetting to pay taxes.

Personally, I don't blame anyone for forgetting to pay their taxes during the Dubya/dick 8 year long nightmare.

Posted by: kevinschmidt | January 26, 2009 8:23 PM | Report abuse

WOW. First was H.Paulson now we have T.Geithner as a Treasury Secretary. Both were among the Genius at Goldman Sachs for inventing SWAPS, the Gimmicks that brought down the Economy. Who need Terrorists !!!

Posted by: mtavro | January 26, 2009 8:23 PM | Report abuse

THE U.S. NOW HAS A TAX EVADER IN CHARGE OF THE IRS!!!

CLAP! CLAP! CLAP! CLAP! CLAP! CLAP! CLAP!
CLAP! CLAP! CLAP! CLAP! CLAP! CLAP! CLAP!
CLAP! CLAP! CLAP! CLAP! CLAP! CLAP! CLAP!
CLAP! CLAP! CLAP! CLAP! CLAP! CLAP! CLAP!
CLAP! CLAP! CLAP! CLAP! CLAP! CLAP! CLAP!
CLAP! CLAP! CLAP! CLAP! CLAP! CLAP! CLAP!

THAT MEANS NOBODY HAS TO PAY THEIR TAXES ANYMORE!!!

YEA!!!!!!!

Posted by: DriveByPoster | January 26, 2009 8:24 PM | Report abuse

Geithner, the person who heads the IRS didn't pay his taxes.

Rangel, the congressman who writes the tax laws didn't pay his taxes.

Frank lives with a Fannie May lobbyist and writes the law that regulates it.

Dodd and Biden write mortgage law and get sweetheart mortgages.

Obama and Michelle get a free house from the Blago machine.

Oh well, gd bless our democracy and the Democrats that own us.

Posted by: georgejones5 | January 26, 2009 8:29 PM | Report abuse

"62,000 jobs lost in the last month...and the Republicans vote against putting the president's choice to head the Treasury Dept. The bitter partisan politics have returned...thanks to McConnell and Boehner.
"

don't be a fool.

Obama has now appointed sumners, who 18 months ago swore there was no problem with
sub prime mortgages.

and geitner, who back deregulation and helped created TARP (the first bailout for those who don't know)

we're getting more of the same "protect the super rich" from obama..

Posted by: newagent99 | January 26, 2009 8:35 PM | Report abuse

I have new respect for Democratic Senators Robert Byrd, Tom Harkin and Russ Feingold for opposing this nomination and going against the bullying of Harry Reid and the Obama administration. There have been many other nominees for non financial departments that have had their nominations derailed for more minor infractions than Geithner. I think it's horrible that this guy gets confirmed to oversee the IRS when he can't even comply with federal tax laws.

Posted by: jsypal | January 26, 2009 8:40 PM | Report abuse

Man, "ain't" America just the greatest country on earth. An ex-drunk and a self-admitted illegal drug user can get elected POTUS in consecutive terms. A tax cheat can get appointed Treasury Secretary.
But a famous baseball, who never used illegal drugs, can't get elected to the Hall of Fame.
Where else in the world?

Posted by: bnw173 | January 26, 2009 8:40 PM | Report abuse

This is another HISTORIC FIRST by Barack Obama. This is the fist time we put a tax cheat as head of the IRS.

Thanks for the History President Obama!

Posted by: robtr | January 26, 2009 8:46 PM | Report abuse

It is a shame that only 34 Senators put their country first. How can anyone put faith in Geithner to manage the country's finances when he can't manage his own.
His proclaimed expertise only illustrates that he is too corrupt for the position.

Posted by: BlackGumTree | January 26, 2009 8:59 PM | Report abuse

Tax cheat???

It was my understanding Geithner paid his back taxes plus interest and penalties.
Sooo the government got its money plus more and then flushed it down a toilet in Iraq!!!

Way to go!!!!!

Posted by: knjincvc | January 26, 2009 9:09 PM | Report abuse

His mistake concerning his taxes was understandable. He was employed by the International Monetary Fund - and remember he was employed by this organization - so he figured the statutory deductions from his income took place - as if he was employed.

However, the IMF, being an international organization, doesn't pay the payroll taxes that most employers in the U.S.A. pay. That is the responsibility of the employees - who under U.S. tax law are regarded as "self-employed" even though they really are not "self-employed."

Did the IMF inform Mr. Geithner of his responsibilities in regard to this?

Did the IRS just give him a bill for the two years he was asked to pay without an explanation that he might owe for previous years for a similar type of employment?

Geithner paid his back taxes and also paid the penalties.

Give him a break.

Posted by: WorkatHomeGuy | January 26, 2009 9:12 PM | Report abuse

I like having a tax cheat as Treasury Secretary. It's comforting to know he also thinks taxes are too high - and he's willing to break the law to prove it!

Posted by: pgr88 | January 26, 2009 9:15 PM | Report abuse

Personally mistakes can be made and understood how it can happen. My only hope is no laws in Government are broken these fours years, I would really hope that because this team must succeed and shine forward.

Posted by: bdrevers | January 26, 2009 9:27 PM | Report abuse

A Paulson clone who cheats on his taxes. Thanks. I voted for this?

Posted by: rusty3 | January 26, 2009 9:32 PM | Report abuse

As a dyed in the wool DEM., I am beyond shocked and appalled that this TAX CHEAT WHO TRIED TO BLAME HIS TAX EVASION ON TURBO TAX BEING THE CULPRIT IS NOW GOING TO BE HEAD OF TREASURY AND GASP! HEAD OF THE IRS- AN AGENCY THAT WOULDN'T HIRE HIS SORRY ASS IN AN ENTRY POSITION WITH HIS 40,000 TAX EVASION!

UNREAL! THIS IS THE REPUBLICANS ALL OVER AGAIN IN THE RUN UP TO THE IRAQ WAR- GIVE THE PRESIDENT A BLANK CHECK TO PUT ANY MORALLY QUESTIONABLE GOVT. OFFICIAL LOYAL TO THE PRESIDENT IN CHARGE! LET'S SEE, I THINK I CAN SEE SIMILARITIES BETWEEN GEITHNER AND CHENEY/RUMSFELD-PURELY FROM AN IDEOLOGICAL POINT OF VIEW.

AND CONGRESS, YOU WILL RUE VOTING FOR THIS LIAR AND TAX CHEAT FOR SEC. OF THE TREASURY-MARK MY WORDS! BUT THE IRS SHOULD EXPECT THAT OTHER PEOPLE CAN NOW GET OFF WITH TAX EVASION-AND NOT PAY THE CONSEQUENCES-JUST LIKE THEIR BOSS, TIM GEITHNER DID@

DISGUSTING YOU GOOD FOR NOTHING DEM. LEADERSHIP! STAND UP TO OBAMA AND JUST SAY NO!

Posted by: schmetterlingtoo | January 26, 2009 9:36 PM | Report abuse

If the new guy at Treasury is able to recover the ruined economy, then his stumble over his obligation to pay income tax might be forgiven. I hope he's up to the job. The Republican strategy is to oppose, oppose, oppose and hope Obama is unable to breathe life into the corpse of an economy that President Cheney left behind. That way voters will abandon Democrats and jump into the arms of Republicans in hope that Republicans are disposed to make life easier for citizens of the United States who boast of net worths less than a few dozen millions of dollars.

Posted by: BlueTwo1 | January 26, 2009 9:36 PM | Report abuse

Is it okay if I don't pay my taxes? If it's good enough for the Secretary of Treasury, it's certainly good enough for the rest of us.

Just kidding. He's "sorry". Yeah, me too, that I didn't get away with it.

Posted by: Ombudsman1 | January 26, 2009 9:38 PM | Report abuse

Geithner was notified by the IMF of his SE tax responsibilities numerous times in writing. He was ALSO REIMBURSED by the IMF f/those same SE taxes. There is NO EXCUSE, NO LIE, NO COMMENT that can provide a tax evader w/the honesty and/or integrity necessary to direct the Office of the Secretary of United States Treasury. Those of you who excuse his dishonesty belittle what integrity our Democracy might still have. Getting caught for intentional tax avoidance by the IRS and paying up and expressing trite remorse does not excuse the act. No doubt,as long as the bank robber apologizes and gives the money back, he should be allowed to walk away, right?

Posted by: rem1236 | January 26, 2009 9:39 PM | Report abuse

If I understand the taxes not paid, they had nothing to do with Turbo Tax and nothing to do with filing individual income tax returns. The guy is a crook!!!!!

Posted by: PWC0412 | January 26, 2009 9:39 PM | Report abuse

This guy is either too stupid to figure out his taxes - or criminally evaded them.

In a normal world, he would be unqualified to do anything remotely connected with money.

In the Obama administration, this guy actually looks good.

Thieves, criminals, incompetents.

It used to be that these issues disqualified a potential nominee - now, its a matter of spinning and downplaying the criminal behaviour.

Change.

I'll keep my guns, my self respect and my dignity. You screws can have the change.

Posted by: VirginiaConservative | January 26, 2009 9:41 PM | Report abuse

Two years!! Big deal. India had a Deputy Prime Minister who failed to file his tax returns for ten years. Why? He forgot. What happened? Nothing.

Posted by: arunv49 | January 26, 2009 9:48 PM | Report abuse

The real disgrace here is Geithner gamed the system not once, but TWICE. After the IRS first caught him cheating on the tax, he paid, but only partially. Because of the 3-year statute of limitations, IRS couldn't go after him for unpaid tax before '03. SO what did Geithner do? Dodge the tax! However unbelievable it might be, one can still take Geithner's words for why he missed the original unpaid tax. But IRS found him cheat, how can he still claim an innocent mistake for not paying '01 and '02 taxes? This is absolutely deliberate!

Posted by: wangAustin | January 26, 2009 9:49 PM | Report abuse

Funny how this tax cheat heads an agency, IRS, in which he does not qualify for a contract. Federal contractors seeking to transact business with the IRS are held to a much higher standard than this guy was held by congress.

Posted by: natledone23 | January 26, 2009 10:16 PM | Report abuse

imagine the millions of americans will will begrudgingly pay their taxes (on time!) over the next few months. will the everyday people of this nation ever get respect from our country club style of government.

Posted by: natledone23 | January 26, 2009 10:23 PM | Report abuse

My old Senator, Robert Byrd is so old and frail he's only chugging along on one cylinder. But bless that geezer, he knows BS when he sees BS! He broke the code that Geithner only coughed up his back taxes when his nomination was at stake. Shame! Shame! Have you no Shame Mr. Geithner?

Nah..... guess not. How sad that Obama is already listening to sleazy 'advisors' who told him to give this loser a pass.

Posted by: mosthind | January 26, 2009 10:27 PM | Report abuse

In this currant financial crisis, would President Obama and his economic team now lead by newly sworn in Treasury Secretary Tim Geithner consider buying up all of the bad debt held by financial institutions by reissuing "United States Notes”?

United States Notes were in circulation before the creation of the modern “Federal Reserve System” as a way of influencing the money supply by federal government fiat. These Notes were first issued by The United States Treasury after passage of The “Legal Tender Act” by the U.S. Congress and President Abraham Lincoln on February 25, 1862 to finance the American Civil War.

There have been previous attempts to stimulate the economy, the Currency Acts of July 10, 1862 and March 3, 1863, and May 3, 1878 (among other legislation) which established statutory limitations on the amount of United States Notes authorized to be outstanding and in circulation

The notes were issued and remained in circulation until January 1971, after which they were entirely replaced by the “Federal Reserve Notes” which had circulated alongside them since 1914.

As an example, during the panic of 1907 president Theodore Roosevelt increased liquidity in the markets by authorizing the treasury to issue more "United States Notes”

The Treasury Department issued these notes directly into circulation, and they are obligations of the United States Government (not the Federal Reserve) the issuance of United States Notes was subject to limitations established by Congress as allowed by the U.S. Constitution, Article I, Section 8,states that only the U.S. Congress has the ability.

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

Both United States Notes and Federal Reserve Notes were parts of the national currency of the United States and both were legal tender. Both were used in circulation as money in the same way. However, the issuing authority for them came from different statutes. United States Notes (like Federal Reserve Notes) were fiat currency, in that they were never redeemable explicitly for any precious metal. The difference between a United States Note and a Federal Reserve Note is that a “United States Note” represented a "bill of credit" where the currency was transferred into circulation free of “interest” or Debt.
“ Federal Reserve Notes” are based on debt, and thus bear (or pay) interest to the Federal Reserve from the Government and the Citizenry. The Federal Reserve serves as a lending intermediary, (an interest charging Bank) between the Government and the citizenry.

This is an issue with multiple legal precedence. Please feel free repost and to pass on to others who may be able to see, understand, expand on and bring to reality, the possibilities presented here.

Posted by: supernovaone | January 26, 2009 10:39 PM | Report abuse

There is no real change in government except a shift in different players and some are repeats from Clinton's former days. Same old rhetoric and old way of politicking...Always paying the piper and always pluging in the holes with either irresponsible and inept individuals or liers and cheats....

Posted by: Rhonda5 | January 26, 2009 11:17 PM | Report abuse

Byrd, Feingold, Harkin, Specter is a pretty impressive enemies list.

IMHO this guy should have been denied confirmation on moral grounds.

With him at Treasury, I don't see why every US citizen shouldn't feel entitled to try to underpay their taxes by as much as they think they can get away with, and see how it turns out.

Of course, for people whose work actually causes them to sweat and get tired muscles, sore feet, or aching backs, there will be no mercy like the mercy this rich man received.

Sad day for those with high hopes for Obama - a category which includes me.

Posted by: officermancuso | January 26, 2009 11:26 PM | Report abuse

This was a contentious nomination.
I listened to Mr. Geithner being grilled in the Senate committee one morning.
On one hand, I get what he was saying; he had a CPA who put the completed forms in his hands and he signed them without studying them in detail.
When he was audited and the IRS corrected his IRS submissions, he paid what they said he owed, making one big mistake.
He didn't think about why he owed back taxes and penalties.
Then, he underwent vetting by the Obama transition team.
Then, he woke up to all of his tax liabilities.
He didn't argue about it; he paid his 2001-2002 back taxes and penalties.
As I listened to the testimony and the esoteric questions about the poor performance and the needs of the economy, I understand that President Obama believes this man has the comprehension to craft prescriptions for resurrecting the economy.
However, like Senator Collins of Maine (for me, a rare agreement with someone from the GOP), I still could not agree that Mr. Geithner deserved to be in charge of tax collection and the I.R.S.
Reluctantly, I have come to agree with Senators Byrd, Collins, Harkin, Hutchison and Spector.
My GOP friends would faint if they could read this.
Geithner has the confidence of those who control our financial institutions.
That, in itself, raises the hackles on my neck.
I hope and pray President Obama has made a wise choice here.
One thing I do know: Mr. Geithner will have one tough cookie breathing down the back of his neck until things get better.
However, I think the IRS is going to have a problem garnering respect from those who resist paying taxes.
President Obama doesn't intend to fail, bad as this situation he inherited is.
America is depending upon him to win the battle.

Posted by: Judy-in-TX | January 27, 2009 12:05 AM | Report abuse

He was promoted because he did such a great job overseeing the New York Banks and financial system.
Obama, DUH?You need a new vetting team.

Posted by: Texan2007 | January 27, 2009 12:07 AM | Report abuse

Did the IMF inform Mr. Geithner of his responsibilities in regard to this?

Geithner paid his back taxes and also paid the penalties.

Give him a break.

Posted by: WorkatHomeGuy | January 26, 2009 9:12 PM

Yes, WorkatHomeGuy, Geithner SIGNED documents that explained his tax responsibilities while working for IMF. Tell me, if you pay taxes, do you think you'd notice the take-home pay difference if Social Security and Medicare/caid weren't being taken out of your paycheck?

Geithner only paid taxes and penalties AFTER Obama nominated him in 2008! I wonder why the IRS didn't garnish his wages or throw him in prison like they would do us?

I can't understand why anyone would support this guy. This isn't about party lines, this is about greed and corruption by a financial elite which is being decried as the reason why we're in a recession! Ludicrous. You're a sheep if you're supporting this man just b/c you voted for Obama and it's what Obama wanted.

I voted for Bush twice and think it's horrible that he and Congress (Dems included) went to war on faulty intelligence. Somebody's head should've rolled at the CIA or FBI or whoever had that report. If Congress thought it was intentionally misleading, THEY should have forced an investigation. If true, I wouldn't support Bush blindly. Think, people, think.

Posted by: justawriter | January 27, 2009 10:46 AM | Report abuse

Before the IRS flub was discovered, Tim Geithner was reported to be the BEST in the US. Let's be sure that if the IRS thing didn't happen, the repubicans and blue dog dems who voted against him would have done the same thing regardless. Its inbred in them. It would be more correct to refer to them as the obstructionist party instead of republicans. These are the clowns that spent us into the mess we're in right now.

Posted by: jessie1 | January 27, 2009 11:52 AM | Report abuse

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