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First Read is an analysis of the day's political news, from the NBC News political unit. First Read is updated throughout the day, so check back often.

Chuck Todd, NBC Political Director

Mark Murray, NBC Deputy Political Director

Domenico Montanaro, NBC News Political Reporter



Transition: Geithner's taxes, HRC's day

Posted: Wednesday, January 14, 2009 9:12 AM by Mark Murray

The Washington Post writes, “Timothy F. Geithner, the man tapped to lead the nation out of the greatest economic crisis in decades -- and who would oversee the Internal Revenue Service -- trekked to Capitol Hill yesterday to explain to senators how he made almost $43,000 worth of mistakes on his own tax returns… There was little evidence yesterday that Geithner's errors, which included a related disclosure about a housekeeper who worked for him briefly without proper employment documentation, would derail what has been a smooth confirmation process for Geithner.”

“But the revelations could delay consideration of Geithner's nomination. Late Tuesday, Republican Sens. Jim Bunning (Ky.) and Jon Kyl (Ariz.) blocked a request to proceed with his confirmation hearing Friday. Democratic lawmakers still hoped to confirm Geithner to the critical economic post before Inauguration Day.”

NBC’s Ken Strickland reports that Senate Finance Committee Chairman Max Baucus has asked the committee to hold Geithner’s hearing on Friday. But there is at least one GOP objection, which could postpone the hearing. The matter should be figured out later this morning.

Here’s the Boston Globe’s ironic headline: "Treasury pick failed to pay taxes." More from the Globe: “[T]he revelation was a stunning development and a potential blow to the portrayal of Geithner as an economic wunderkind, who is slated play a leading role in pushing through Obama's economic stimulus program, which the president-elect has made the early focus of his administration."  

The Washington Post on Hillary Clinton’s testimony yesterday: “The 61-year-old former first lady and current senator from New York was warmly embraced by senators on both sides of the aisle who praised her intellect and her policymaking skills. She fielded nearly six hours of mostly polite queries, the only exceptions being a handful of questions about potential conflicts posed by former president Bill Clinton's charitable foundation.”

The Wall Street Journal adds, “Sen. Clinton's nomination is expected to be unanimously approved by the Senate Thursday. Democrats and Republicans praised the New York legislator for her work on international affairs, both in the White House and as a member of the Senate Armed Services Committee. Republican senators stressed, however, that Sen. Clinton's confirmation would be contingent upon a strict accounting procedure being implemented to track former President Bill Clinton's foundation activities and to guard against conflicts of interest with his wife's work. ‘The core of the problem is that foreign governments and entities may perceive the Clinton Foundation as a means to gain favor with the secretary of state,’ said Sen. Richard Lugar of Indiana, the ranking Republican on the Foreign Relations panel.”

During Clinton's five hours of testimony, "her statements marked a drastic departure from the Bush administration's broad skepticism toward treaties, and were greeted enthusiastically by Democrats and many Republicans on the committee, as well as by specialists on arms control and the environment." 

"Hillary Clinton never got her coronation as President, but her confirmation hearing to be Barack Obama's secretary of state on Tuesday came mighty close," the New York Daily News writes. 

The New York Post: "Senators treated colleague Hillary Rodham Clinton with kid gloves yesterday.”

Here’s our confirmation calendar:
-- Wednesday, 10:00 am ET: VA: Gen. Eric Shinseki (Veterans' Affairs Committee) 
-- Wednesday, 10:00 am ET: Agriculture: Former Gov. Tom Vilsack (Agriculture, Nutrition and Forestry Committee)
-- Wednesday, 2:00 pm ET: OMB Director: Peter Orszag (Homeland Security and Governmental Affairs Committee)
-- Wednesday, 10:00 am: EPA: Lisa Jackson (Nancy Sutley to be chairman of the Council on Environmental Quality) (Environment and Public Works Committee)
-- Thursday: Interior: Sen. Ken Salazar (Energy and Natural Resources Committee)
-- Thursday: Attorney General: Eric Holder (Judiciary Committee)
-- Thursday, 10:00 am ET: Homeland Security: Janet Napolitano (Homeland Security and Government Affairs Committee)
 -- Thursday, 9:30 am: UN Ambassador: Susan Rice (Foreign Relations)
 
"Julius Genachowski, a friend of Obama's from their days at Harvard Law School and a top fund-raiser for his presidential campaign, would bring a corporate technology background and inside-the-Beltway experience to the FCC." 

The Boston Globe's Peter Canellos takes a stand against Sanjay Gupta as surgeon general. "The problem - as a small but growing chorus of critics points out - is that the surgeon general isn't merely a communicator, but a policy maker who is supposed to be an independent voice on medical matters." Did you know: "Gupta also has some political experience, having written speeches for Hillary Clinton during her failed attempt to remake the health system in 1993." 

The Washington Post notes how Obama’s pick to head the Transportation Department, GOPer Ray LaHood “has been an unapologetic advocate of earmarks, a practice Obama now opposes, and has used his influence to win funding for projects pushed by some of his largest campaign contributors.” More: “LaHood has defended his use of earmarks as a way to direct federal money to decaying communities in his district and insisted there is no connection between his earmarks and projects benefiting campaign donors.”

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OBAMA'S 'DREAM TEAM' IS CRUMBLING ALREADY!
CHANGE ... NEW POLITICS ... CHANGE --- S.O.S. (SAME OLD STUFF).
I think people are missing the point.  It isn't that Geithner made a mistake on his taxes, that happens.  

The real story is that when told of the mistake by the IRS and forced to pay back taxes, he only did it for 2 of the 4 tax years where he KNEW he didn't pay the correct taxes.  He made a choice to not correct his mistake and knowingly chose to not pay the tax until confronted by the Obama transition team.  The story isn't that taxes are complicated, everyone knows that.  The story is what did Geithner do about correcting his mistake when he knew about it, and the answer is nothing.  

Not a strong moral statement for the future head of the IRS.
>>>Here’s the Boston Globe’s ironic headline: "Treasury pick failed to pay taxes." More from the Globe: “[T]he revelation was a stunning development and a potential blow to the portrayal of Geithner as an economic wunderkind...
==========
He forgot to pay taxes, but fessed up and paid up when the mistake was discovered.  He hired a housekeeper who was legal at the time, but her status lapsed and she simply didn't follow up.

If you can tell me how this measures up to the blatant war crimes of the Bush administration, then I may be willing to give on this one.  But for now, this is just a shiny object for the Republicans.

6 Days Until Inauguration Day!
http://jawillie.blog.com
Doesn't Geithner know its patriotic to pay taxes? Just ask Joe Biden.
I'm still having trouble with a person (Geithner) who is supposedly very bright and whose expertise is economics admitting to making mistakes on his income tax returns. The fact that he is in line for Secretary of Treasury spot makes it even worse. I just can't see the Dems not jumping on this if this were a Republican appointee.

The key word is "credibility". Geithner may not be guilty of anything and may have corrected his errors by paying these back taxes, but in the eyes of your average voter I can't help but think his credibility is shot. Plus the fact that during these rough economic times where many are jobless and becoming homeless Geithner is reported to have had a few minor complications regarding his "housekeeper". Now just what do you think are the first thoughts of people reading of this issue. Perhaps something like "we are hurting badly economically and this guy has to be concerned with housekeeper issues"?  

The whole appointment of Geithner no longer sits well.
Even Obama's Surgeon General pick is drawing fire. How in the world can anyone screw that pick up? I mean, we had the deer in the head lights look Jocelyn Elders in the position. She was amusing to watch, but I don't think anyone listened to any of her so called "policies".
Hillary Rodham Clinton may go down as one of the most influential politicians in American history. This comes from a staunch Republican ... me.

She'll squeak by all the allegations of wrong doing with heads of other countries for profit and questionable, if not illegal or at least unethical real estate deals .... and there's that Vince Foster debacle.

Still, she had the good sense to follow Bush into Iraq, based on the intelligence available at the time, and she even leaned strongly toward many of Bush's policies while he was president. John McCain may be the Democrat's favorite Republican but Hillary may be the Republican's favorite Democrat.

She has common sense like no other Dem and realizes that, although she does not favor an Omama presidency, she's willing to work with him nation to nation to help America and at the same time add to her illustrious political career. Some would think she's already been president for the 8 years William Jefferson Clinton was in office. Certainly she had a lot to do with his presidency and a split from him during the Lewinsky scandal would not have furthered her career.

So while I do not agree with Ms. Clinton most of the time, I am big enough to acknowledge her good points and appreciate them. This is something you won't get from the libs on First Read toward ANY Republican.
Off comment a bit but the Cincinnati Enquirer's Editorial Page calls CNN ans MSNBC hyenas for not giving Bush enough credit during his tenure as President.

The Enquire goes on to list Bush's accomplishments (many)AND his faults or failures, the biggest of which was SLOW responses, in general. And he never defended himself.

The Enquirer goes on to say that history will judge GWB as a better than mediocre president, leaning him toward good but short of great.  

I can live with that.
We do not need corruption and scandals from this incoming administration.

1466 days until Obama/Biden are gone!
HRC is going to be an amazing Secretary of State.  She is smart, articulate, tough, and understands the issues facing the U.S. and the dangers around the world.  There's no doubt in my mind.  She will do a great job.
There is an old saying that says it is the cobbler's kid that goes barefoot. The reason, of course, is that he is too busy making shoes for others that he doesn't have time to make shoes for his own kid. Well, Mr.Geithner may be see as the cobbler of finance. He is too busy helping others that he neglects his own affairs. Once pointed out to him he fixed the problem. Had he not fixed it there would be a problem but since we all make mistakes what the heck. Learn from our mistakes and move on. It seems he may do that.
That wall street insider Geithner must go!

His arrogance in thinking he could get away with not paying his taxes is a prime example of the wall street malfeasance that has caused our economic collapse.

By letting him stay, TPTB admit there is one set of rules for the DC/NYC robber barons of the 21st Century and another for main street America.

This is no "honest mistake" as Senator Baucus states.

What? The guy doesn't know that April 15th comes around every year?

Pathetic!

To restore Americans faith in the political/legal/financial systems of our country, get rid of him!

Where's the change?
>>>The Enquire goes on to list Bush's accomplishments (many)AND his faults or failures, the biggest of which was SLOW responses, in general. And he never defended himself.

The Enquirer goes on to say that history will judge GWB as a better than mediocre president, leaning him toward good but short of great.  

I can live with that.
Sarah of Cincinnati (Sent Wednesday, January 14, 2009 10:40 AM)
==========
Like a certain governor once lamented, when did we start accepting annonymous bloggers as hard news sources?  The same can be said of Editorial pages, since they're both mostly the biased opinions of the author.

But, hey, if that gets you to sleep at night, more power.

Still trying to find out who's partying on the 20th.

6 Days Until Inauguration Day!
http://jawillie.blog.com
How can U.S. Senators say deliberately not paying thousands of dollars of taxes "no problem"?  He even did it twice, and still "no problem?".  Maybe the Senators will bail him out too.  Come to think of it, the word "bail" was once meant for crooks.
This is something you won't get from the libs on First Read toward ANY Republican.
                         Palomino
******************************************************
Show me a Republican that has one GOOD point, and I'll acknowledge it.
Is the President-Elect aware that IRS employees who don't pay taxes are terminated?  And, given the salaries earned by these IRS employees, the amounts owed is generally only in the hundreds, not multiple thousands.  Anyway, should we elect an individual who fails to pay his taxes and the President-Elect calls it a "mistake" when low income IRS employees are fired for the same "mistake"??????  Once again, unfair treatment to different citizen classes.
Awww shucks, it was a little mistake and it got fixed on the second try.  What's the big deal! Everybody cheats on their taxes.


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