Obama's Tax Problem

Lately its all about taxes. Tim Geithner, Tom Daschle, and tax cuts have made Obama's first two weeks a tad difficult, but I still have overwhelming confidence in him.

First of all, the mistakes made by Geithner and Daschle were errors that most average Americans could and would make. Now, this isn't to say that someone of their stature should have had an accountant that knows what he is doing, but alas, everyones trying to save money, and doing your own taxes can help.

Lets start with Geithner. Did his taxes himself with TurboTax software while working for awn international company that does not automatically deduct Social Secuirty and Payroll taxes. Geithner forgets to add these percentages and fails to pay roughly $40,000 in taxes. He pays back taxes and interest and is all good with the IRS.

Tom Daschle failed to declare that someone had lent him a car and driver. Why this has anything to do with taxes is beyond me, but it happened. So Daschle pays back his taxes, over $140,000, and is all good with the IRS as well.

Lastly there are tax cuts that the Republicans are desperately clawing for. Obama has included some of them, but doesnt seem to want to compromise more. This is good, however, because everyone knows that the multiplier effect for a dollar of government spending is greater than that of a tax cut. Marginal Propensity Consume is higher than Marginal Propensity to Save.

So these problems with the nominees can lead to two things. One; the American public sees common mistakes in these two high class men and sympathize with them, which is what seems to be happening. Two; the public is wary of these two Cabinet members and at the first chance will eat them alive, bringing much of the confidence in Obama down. Hopefully, we will never see outcome number two, but it is a possibility.