Quote:
Originally Posted by MS Fowler
He did not pay; his employer paid him extra to compensate for the extra taxes.
If my employer decides to give me a $5000 bonus, they check I get is somewhat less, say about $3300. This is because they with held the taxes. If they gave me a $5000 check for the bonus, and then another $2000 check for the taxes, it would approximate what Geithner rec'd.
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MS,
Your post was not clear to me, I took it to mean the HE paid extra taxes to the Govt to cover his IMF income. And I haven't read into what actually occurred.
If the IMF paid him "extra" to cover his "extra taxes", the extra reimbursement is also subject to income and self-employment tax. So, if the boss gives you 5,000 and then another 2,000 "for the taxes", you have 7,000 of taxable income. I'm sure you agree with that.
Regardless, I still give him a pass. Probably an innocent mistake. I wouldn't assume that his position in the Fed. Reserve gives him any more expertise or interest in the Code than anyone else.
I may be wrong, but I'll be surprised if his name is added to the
Confirmation Hall of Shame, including Zoe Baird, Kimba Wood, Clement Hainsworth, and "Judge Mediocracy", G Harold Carswell
, to name just a recent few.
And I'll live with it....
