Will Another Politician Lose Nomination for Not Paying Taxes?
It has happened before: Zoe Baird, Linda Chavez, Bernard Kerik, and Kimba Wood, all have lost political appointments due to not paying their domestic employee's taxes, which is required by law.
Now another politician, Timothy Geithner, may lose his bid for Treasury Secretary for not paying taxes of a former housekeeper. Perhaps the failure to pay was due to a, "common tax mistake," from 2001-2004 while working for the International Monetary Fund. Geithner claims he has since paid all back taxes owed, but he did not admit the error or pay the taxes until after his nomination by President-elect Obama.
http://www.cnbc.com/id/28641283
http://news.aol.com/political-machine/2009/01/13/nannygate-nabs-another-nominee/
Quote from CNBC:
"Treasury Secretary nominee Timothy Geithner is facing questions over the immigration status of a former housekeeper and whether he paid Social Security and Medicare taxes.
Sen. Charles E. Grassley, the ranking Republican on the Senate Finance Committee, has raised questions about both issues, the Wall Street Journal reported, though Senate Democrats told CNBC that they don't think this will derail the nomination. Geithner's confirmation hearing is scheduled for Thursday.
According to the Journal, the former housekeeper's immigration papers expired while working for Geithner, though she later received a green card and became legal. The second question involved employment taxes while Geitner was working for the International Monetary Fund from 2001 to 2004."
Zoe Baird was nominated by Bill Clinton in 1993 to be attorney general until it was uncovered that she had hired two illegal immigrants as a driver and a nanny and did not pay their social security taxes.
Linda Chavez was nominated by George W. Bush in 2001 for Secretary of Labor. But Chavez allowed a woman to live illegally in her home in the 1993's and gave her money and did not become Secretary of Labor.
Bernard Kerik was nominated by George W. Bush in 2004 to be Secretary of Homeland Security. But Kerick lost the nomination once it was discovered he had not filed taxes for a former housekeeper and nanny.
Kimba Wood was Bill Clinton's second nominee for attorney general in 1993. But, like Zoe Baird, Wood had hired an illegal immigrant as a nanny. Due to the controversy over Baird, she decided to not accept the nomination. Clinton's third nominee for the top U.S. law enforcement position, Janet Reno, was confirmed.
If you work as a nanny, are you legally filing and paying taxes?
8 comments:
Yes I pay taxes! Haven't politicians learned by now you've got to be certain you hire legally and pay legally?!!!
This is so utterly annoying to me. Time and time again high profile personalities are caught not paying salaries legally to domestic workers. Ruining another career. What a waste. With all the inexpensive software available online and just a few measely hours per year and their careers wouldn't be ruined. It's not worth it. Lawyers lose the bar. Doctors lose their practice. Politicains lose their elected positions. If you are a nanny not paying taxes insist on it today! Don't let your employers lose their practices. PAY YOUR TAXES! So annoying no one learns from their mistakes.
Donna, Career Nanny in Michigan
Timothy Geithner is the norm not the exception! Honestly, how many nannies or housekeepers do you know that pay taxes? Even when parents or domestic employers pay on the books they write checks to CASH. But any audit could easily see the employer is giving $750 per week to the same person for a year. But no one is prosecuted unless the media is looking for this stuff and are a high profile personality.
I really feel like a lot of nannies are on their "high horses" constantly preaching to pay taxes, pay taxes. What's the big deal? Nannies make so little money as it is. I pay taxes but wish I didn't. I am actually jealous of my nanny friends who get cash under the table. I make more salary than them but bring home much less. I pay about 25% of my salary in taxes. For what? To defend a nation in an immoral war? Healthcare that I don't benefit from? I am single without children why should I pay for schools when I don't have kids? A social security system that will be non-exixtent by the time I am at the age to retire. The amount nannies make isn't enough to save a nest egg to retire either, then the government takes what little I make for taxes?
I just don't see what the big deal is. Doesn't seem fair to ruin political careers over something most domestic employers do anyway!
Sad but true, I think nannygate is the norm. How can the IRS really keep track of it all? There really is no effective way to police most parents and domestic workers. The actual chances of getting caught outweigh the satisfaction of saving both time and money by paying under the table. Sadly, when some parents make such decisions they aren't expecting to be a politician someday. Fair or not, it's illegal and we certainly cannot have a Treasury Secretary that has broken the law. What does Treasury Secretary do anyway? LOL I'll look it up now. But clearly those who are highest up running the country are held to higher standard then most citizens. As they should be.
Lilli Nanny in DC
Are you kidding me? A nanny above doesn't want to pay taxes? How does that make you any different than an illegal alien? Chances of losing your job are increasing in this economy so having enemployment isn't something you want if you lose your job? Who cares if you fall and get hurt, at work because you don't want diability? Paying taxes as a citizen protects you my friend. I do think paying taxes towards education and our schools is extrememly important for every citizen not just those who have children. You work as a childcare worker but don't care about education because they are someone elses kids you care for? The rationalization is insane.
Agencies and parents should be required by law to make sure everyone they hire pays taxes legally. Nannygate is a term for a huge scandal and there should be severe laws punishing those who break the law.
No way in H_ll that the Treasury Secretary should be this guy. An Obama cabinet member must be able to handle his own personal finances. You think he could be hired as an accountant or banker or law firm after not paying over $30,000 in taxes?
We cannot afford to have scuff laws running the country.
Lara in New York
This isn't some high school election or high school politics we are talking about. This is American top government and world financial matters. Obviously reporters are going to find out if nominees to the United States cabinet avoided paying taxes. Even a bank would not hire him if they he applied and they found out he didn't pay $34,000 in taxes! You think he could be hired as an accountant? Lawyer? Do you think my boss would even hire me as a nanny if she found out I owed back taxes? He cannot help lead the country (and world) out of financial recession if he cannot even handle his own taxes. Qualified or not, you are judged on your past actions. Let this be yet another lesson to all of us to pay our taxes as required by law.
Colleen, Live-in nanny and household manager in Richmond, Virginia
If the government could regulate the nanny industry than all nannies would pay taxes as required by law. I've never heard of a department store staff or doctor or lawyer or librarian or pilot or teacher that doesn't pay taxes. There is no doubt that nanny placement agencies should insist that parents pay taxes and if the parents do not sign contracts with placement agencies stating that they promise to pay taxes the agency should be fined. If there are regulations they certainly are not being enforced.
If Bernard Kerik who was in law enforcement doesn't pay taxes and the nominee for treasury secretary thinks he can get away with not paying his domestic employees "on the books" why would the regular, hard-working, under-paid American pay taxes for their housekeepers and nannies?
Becaue the nanny industry is so under-regulated nannies have to insist they are respected and negotiate their own labor rights. Nannies must insist for themeselves that their employers are submitting tax paperwork and paying their portion of taxes as required by law. Taxes protect you and your fellow americans.
Felicia, Nanny, Household Manager, Boston, MA
This man ran the New York Fed and we are to believe he didn't know he owed taxes?
I think I'm going to "forget" to pay my taxes in April and see if I can get a position in Obama's cabinet.
Kellie N., Nanny, Montclair, NJ
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