Alleged tax evasion taints nominee for US treasury chief

Obama's nominee for US treasury secretary, Timothy Geithner, has been accused in the US media of evading social security and Medicare taxes. Obama's team has stated that Geithner had committed a clerical error.


AFP - The confirmation hopes of US treasury secretary designate Timothy Geithner were thrown into doubt Tuesday over questions about tax records and the immigration status of a former housekeeper.

President-elect Barack Obama's spokesman Robert Gibbs issued a statement admitting Geithner had made a "common mistake" on his taxes and was unaware the housekeeper's authorization had expired during her last three months on the job.

But Gibbs called on the Senate to confirm Geithner, saying he was the right man to lead the US economic recovery.

Earlier, the Wall Street Journal reported on its website that senators were probing suggestions that a housekeeper who worked briefly for Geithner had not had proper immigration papers.

It also said senators were concerned that Geithner did not pay social security and Medicare taxes for "multiple years."

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