Obama's Treasury Secretary Apologises for Not Paying Taxes

The man Barack Obama selected to be his treasury secretary has apologised to the US Congress for failing to pay his taxes.

Tim Geithner, the president of the Federal Reserve Bank of New York, admitted he was careless in failing to pay $34,000 to the Internal Revenue Service between 2001 and 2004.

He called the transgressions "careless mistakes" and unavoidable. "They were unintentional," he told the Senate finance commtitee today. "I should have been more careful."

Committee chairman Max Baucus called the transgressions "disappointing mistakes", but said he believes they were innocent ones and should not bar Geithner from serving. The oversight, which has delayed Geithner's confirmation, has become fodder for comedians and talk show hosts. Tax problems have helped sink cabinet nominees in previous administrations.

Geithner paid some of the taxes in 2006 after an audit discovered the discrepancy for the years 2003 and 2004. But it wasn't until two years later, days before Obama asked him to head the Treasury last November, that Geithner paid back taxes he owed for 2001 and 2002.

Geithner is to succeed Hank Paulson, whom he helped steer the Bush administration's response to the economic crisis.