|
Uncertainty about the future of President-elect Barack Obama’s cabinet and
staff are mounting. We are now met with controversy over one of the most crucial
positions, Treasury Secretary. It was recently reported that the nominee for the
position, Timothy Geithner, failed to pay a large portion of his taxes, casting
doubt upon the certainty for his seemingly inevitable nomination. These
indiscretions involved $34,000 of unpaid social security and Medicare payments.
One senator iterates the irony of having a tax-delinquent Treasury Secretary who
has responsibilities for the tax policies of the IRS. In response to these
developments, Geithner’s confirmation hearing has been postponed until the day
after Obama’s inauguration. The strength of Obama’s proposed “Dream Team” of
staff and advisors is beginning to show some weakness. The Geithner news follows
Bill Richardson’s withdrawal as Commerce Secretary, Ray LaHood’s possible
withdrawal as Secretary of Transportation, and scandals with the Attorney
General nominee Eric Holder. In the event that Geithner is stripped from his
nomination, it is likely that Stuart Levey, the Treasury’s Undersecretary for
Terrorism and Financial Intelligence will take the position.
Geithner Possesses “Unique Qualifications”
Despite the very embarrassing and hypocritical nature of Geithner’s problems,
there is very little speculation surrounding the possibility of his
confirmation. Stuart Levey, the stand-in until someone is officially appointed,
lacks one major quality that makes Geithner a perfect choice, the ability to
satisfy bipartisan requirements. In fact, Geithner’s status as an independent
policy maker is most likely the reason why he will be confirmed as Treasury
Secretary. Combined will his experience in dealing with the financial crisis, he
is still the undeniable choice. The urgent economic challenges ahead may be
enough by itself to overshadow his tax problems. Senator Lindsey Graham mentions
that, “These are not the times to think in small political terms.” A decision to
remove him as nominee would serve as a destabilizing factor for the financial
markets, something that the Obama administration will prevent from doing at all
costs. Since no better candidate exists, if he is not confirmed, uncertainty
about who will be the next Treasury Secretary could hurt the US dollar.
Although his experience with domestic tax policy will be directly targeted, many
policymakers are still convinced that he has “unique qualifications” that makes
certain discrepancies worth overlooking.
Read
the entire article here |
