writing checks?
Timothy Geithner didn’t pay payroll taxes owed on income he earned when he worked at the IMF (2001-2003). After being audited by the IRS in 2006, he paid what he owed for 2003 and 2004. The Obama vetting team found Geithner also owed for 2001 and 2002. He recently paid what he owed for those years along with the accrued interest. Props to the vetters for thoroughness and getting this nipped in the bud. Signs indicate Geithner’s nomination remains safe, however embarrassing it might be to have a treasury secretary who screwed up his taxes.
What I want to know is why this issue wasn’t resolved when Geithner became CEO of the NY Fed in 2003? Don’t the leaders of our country’s central (as in “ginormous-in-its-mega-importance”) bank system go through a rigorous vetting process? Ay-yi-yi!
Unrelated to Geithner’s tax woes, but very much related to the crappy economy Geithner will be charged to fix, the New York Times ran an article today about the role local colleges and universities are playing in shoring up a failing economy in California’s Inland Empire. The Inland Empire is comprised of Riverside and San Bernardino counties. Historically, its economy was agricultural and industrial. The area is a rail transportation hub for freight coming into the country from ports in Los Angeles and Long Beach. Population growth in Southern California pushed Los Angeles and Orange County sprawl eastward, and the housing bubble spawned massive real estate development, with relatively affordable housing, that workers in Los Angeles and Orange counties purchased, taking on hours-long commutes in exchange for home ownership.
In yet another example of “what goes up must come down,” the Inland Empire is feeling the brunt of the economic crisis more deeply than its neighbors to the west. Foreclosure and unemployment rates are high, but there is hope. Local campuses like Cal State San Bernardino [CSUSB) and UC Riverside (UCR) had established community programs to foster entrepreneurial and small-business development in the area during the housing boom (with the idea the area needs to be more than simply a network of bedroom communities), and now these programs are playing a critical role in economic recovery. Residential and commercial property that is even more affordable now is attracting small-business owners. The educational and networking assistance provided by CSUSB and UCR is facilitating economic development, encouraging investment and employment.
Economic recovery is going to be long and involved, especially for areas like the Inland Empire, but as the country debates what a stimulus plan should look like, we ought to keep in mind the work brain trusts on the ground have already been doing and not forget their efforts when doling out political and financial support.
