My four year old is obsessed with tea parties right now. If she were aware that tomorrow was National Tea Party Day, she’d be absolutely delighted. Once she realized that meant little in the way of fancy dresses, she’d be pretty disappointed. Thousands of taxpayers across America, however, are energized about the National Tea Party Day.
National Tea Party Day will take place on Tax Day, April 15. Organizers hope to see high numbers at the Taxed Enough Already (TEA) party rallies across the country. There are, as of this writing, 2,027 cities hosting tea parties – you can find one near you on their web site.
While I’ll admit to being intrigued at the idea of a tax protest, I was quickly disappointed when I visited the site. I agree that our deficit it out of control. I am concerned about selling our debt to countries like China. I am not a fan of special interest groups. And those of you who follow the site know that.
It was, then, dispiriting to see an opportunity to have a conversation about real tax policy (something I’d love to see in this country) devolve into a political diatribe. On the front page, mixed in with concerns about tax, there are such tidbits as criticizing the Congress and the President who would “appoint a defender of child pornography to the Number 2 position in the Justice Department” and “want to force doctors and other medical workers to perform abortions against their will.” Abortion and judicial appointments? Really? There are also concerns rallying against immigration, universal health care and more – though at least those parts could arguably be linked to tax.
Please don’t misinterpret what I’m saying. I’m not criticizing the politics (though I clearly don’t agree with all of them). I’m just surprised that the organizers of the event have passed on the occasion to make a unified statement about our tax system that would have appealed to the general population – and instead let it become a shockingly disjointed display of “values” (however you define those).
Why can’t we just talk about tax? Wouldn’t that be a great thing to do at a Tax Day Tea Party? All that stuff that organizers buried on the News Page? Tax effects on the middle class? Charitable contribution limits? Skyrocketing deficits? That’s the stuff that will get people talking. That would have made for an awesome Tea Party on Tax Day.
I tried to reach out to some tea partygoers on twitter – but no takers for an interview. (Quick update: I’ve been promised some feedback from one of the parties – come back for the scoop!)
In the midst of the current economic crisis, I know that many in Congress were hoping for a smooth transition to a new administration. That may not happen. President Elect Barack Obama’s nomination to head the Treasury Department has hit a road block: revelations that Timothy Geithner had failed to timely pay $34,000 in taxes.
Republicans and Democrats have indicated that the information about back taxes (which were eventually paid) would not necessary block the nomination. Sen. Orrin Hatch (R-UT) has said he had “no problem” with Geithner while Sen. Charles Grassley (R-IA) called the information “serious, and whether or not it’s disqualifying is to be determined.” With all of the buzz, it looks like it will definitely not be smooth sailing for Geithner at his confirmation hearing.
The problem stems from Geithner’s 2001-2004 stint at the International Monetary Fund. Geithner failed to pay SE taxes (self-employment taxes, which are basically the FICA equivalent for an independent contractor or otherwise self-employed person). At IRS audit in 2006, Geithner repaid the obligation for 2003 and 2004 but did not pay the tax for 2001 and 2002 until 2008. Remarkably, that amount due wasn’t discovered by the IRS at audit but by Obama’s transition team.
Many in Congress believe that the filing omissions were not intentional and that the confirmation hearing will proceed without further problems. Intentional or not, it’s a sure bet that no matter what Congress is saying now, the hearing will not be an easy one for Geithner.
Geithner formerly worked with the International Affairs division of the U.S. Treasury Department. He went on to serve as an attache at the US Embassy in Tokyo before working under Treasury Secretaries Robert Rubin and Lawrence Summers. Geithner then served as the director of the Policy Development and Review Department at the International Monetary Fund for the tax years in question. He was later named president of the Federal Reserve Bank of New York.
An impressive resume, for sure. But what about the tax issues?
It’s not surprising to hear about someone failing to file SE taxes – or other taxes related to self-employment. I see it all of the time – just look at my “ask the taxgirl” questions. But most of the time, the folks who make those mistakes are web designers, authors, engineers and writers… They are not people whose entire careers have been focused on money management.
Timothy Geithner’s career has always been about money and he’s now on tap to lead the Treasury. He will set the tone for how our country reacts to economic news, as well as tax policy. He will follow in the footsteps as such esteemed Secretaries of the Treasury as Alexander Hamilton, William Gibbs McAdoo and James Baker (I’ll conveniently leave out Henry “I’ve pulled one over on the American people” Paulson).
Is this really the face that we want as representative of our economic policy? Especially in a time of crisis? What do you think?
I sort of took yesterday off… to be interviewed for an upcoming documentary on taxes.
I met with the crew of An Inconvenient Tax at my home on yesterday to talk tax. It was great meeting the guys behind the film.
They posted a quick excerpt about filming me on their blog.
Hmm. I had a “different perspective” than the other interviews? That’s likely true. I suspect the other interviews also didn’t have a dog barking in the background now a rogue fly in the living room…
I’m really interested to see what the Tax Foundation folks have to say – I frequently find myself agreeing with a lot of their policy statements but I do disagree with the notion that our tax policy is fundamentally broken.
Things that were apparent during the interview:
1, My Southern accent becomes more pronounced when I am around folks from Georgia and I talk about my parents.
2, Out of context, I sound very conservative. This is largely because I actually do subscribe to a fairly conservative view of economics. I just happen to think that today’s conservatives are not fiscally conservative.
3, I flip my hair from side to side a lot. A lot.
4, I am really interested in the tax code as it applies to tax policy. This notion of directing behavior through taxation is most pervasive throughout modern history – and on both sides of the political spectrum.
5, It’s hotter than you’d expect in Philadelphia in July.
I’ll keep you posted as I hear news about the film!
Is the UK going green?
You might think so. Since we’ve been here, we’ve been inundated with organic produce and eco-renovation television programming – my son is even using environmentally friendly diaper wipes.
What else is going green? UK tax policy.
The Chancellor has introduced a new budget which includes a substantial tax on higher carbon emitting vehicles. A new Range Rover, which is included in the highest category, can now result in a tax increase in the first year of nearly 1000 pounds (sadly, with the exchange rate, is equal to $2000).
The idea is to provide a disincentive for the average taxpayer to buy an inefficient vehicle. Unlike the 3p increase in beer prices, this kind of increase is likely to make a difference in taxpayer behavior.
Smart policy or destined to be a problem?
