The NYT report on Treasury Secretary nominee Timothy Geithner's failure to pay his payroll taxes tells readers that, "a 2007 I.R.S. notice reported that up to half of such employees [workers at the IMF and foreign embassies] incorrectly file their tax returns." Apparently, the I.M.F. does little or nothing to inform their workers about their tax liabilities under U.S. law. (Assuming Mr. Geithner's account is accurate.) The I.M.F. has a rather poor record in managing the international monetary system as demonstrated by the poor growth records of most developing countries over the last three decades and the persistent flow of capital from poor countries to rich countries. However, it should not be too hard for this organization to figure out the tax liabilities for its employees at its headquarters in the United States. The NYT and other news outlets should do follow up articles asking IMF officials whether they did not know or did not care that a large percentage of their employees were breaking U.S. law. Workers in less prestigious positions, like school teachers or truck drivers would be fired for this sort incompetence or corruption.
--Dean Baker
