Timothy Geithner Confirmed as Treasury Secretary Despite Tax Controversy

Timothy Geithner Confirmed as Treasury Secretary Despite Tax Controversy

In a closely watched vote, Timothy Geithner was confirmed as treasury secretary by the U.S. Senate today, despite facing accusations of not fully disclosing back taxes. The vote, which was 60 to 34, saw opposition from both Republicans and Democrats, but ultimately Geithner will now oversee the second half of the $700 billion Wall Street bailout.

The confirmation comes just in time, as the second tranche of TARP (Troubled Assets Relief Program) money becomes available, with $288 billion already spent and $380 billion promised. Geithner, who previously failed to pay over $40,000 in Social Security and Medicare taxes from 2001-2004, faced tough questioning from Republicans on the Senate Finance Committee last week.

President Barack Obama has initiated a multipronged strategy to boost the U.S. economy, with Geithner now tasked with overseeing the remaining $350 billion from the TARP funds. Geithner, who played a role in creating the TARP program during his time as chairman of the New York Federal Reserve Bank, will now take over from his predecessor Henry Paulson.

Despite the tax controversy, many senators believe Geithner is uniquely qualified for the job. Senator Chris Dodd praised Geithner’s understanding of complex economic issues, while Republican Senator Orrin Hatch commended his bipartisan approach and experience in economic policy.

However, opposition to Geithner’s nomination came from both sides of the aisle, with some senators questioning his credibility as the nation’s chief tax collector. Senator Tom Harkin criticized Geithner for his role in crafting the Wall Street bailout and his ties to Wall Street, while Senator Susan Collins raised concerns about his handling of tax issues.

Ultimately, Geithner’s confirmation signals a new chapter in economic policy under the Obama administration, as he takes on the challenge of reviving the economy and overseeing the TARP funds. Despite the controversy surrounding his tax history, Geithner’s confirmation paves the way for Obama to implement his economic agenda with his chosen team in place.