After the $165 million in bonuses paid to traders at American International Group (AIG), the House approved a bill that would impose a 90% tax on bonuses paid by AIG.
In addition, any individual working at company who was getting $5 billion or more from the $700 billion Troubled Asset Relief Program (TARP) would be taxed. People with incomes of over $250,000 would receive a 90% tax rate on their bonuses.
About half of the Republicans and almost all of the Democrats voted in favor with a vote of 328- 93. Two thirds majority was required for passage.
AIG's Chief Executive Officer, Edward Liddy testified before Congress that employees who took more than $100,000 in bonuses were asked to return at least half. Some have voluntarily decied to return full bonuses.
It was discovered that more than $165 million had been given to AIG's senior executives with the more than $170 billion in assistance funded by taxpayers through government aid.
"A handful of people (are) receiving taxpayers' money for threatening the community in which we live and indeed our country and the financial structure of the world," House Ways and Means Chairman Charlie Rangel said during the floor debate on the bill.
"The whole idea that they should be rewarded millions of dollars is repugnant to everything that decent people believe in ... It is not our job to tell the private sector what to do. It is our job to say don't do it at taxpayers' expense."
House Minority Leader John Boehner, R- Ohio, said the bill was meant to protect the Obama administration and questioned why only 90% of bonuses were recovered.
Republican leaders in the House said they wanted 100% of the bonus money back and said that because the economic stimulus bill allowed bonus payments that were agreed before Feb. 11, AIG bonus contracts are technically not affected since they were signed in April 2008.
Isn't this against the law?
I read that this was unconstitutional.
It is.
Nancy Pelosi along with all the Democrats and half of the Republicans in the House broke their solemn oath to uphold the Constitution.
They knew it was unconstitutional when they passed it.
This bill could not be a more clear example of an ex post facto bill or bill of attainder, take your pick. The Constitution directly and clearly prohibits both.
White Russian
you're right. it's a
you're right. it's a conspiracy!
welcome to politics.
jesus christ
wasn't white russian just railing about how unjust the bonuses were? now he rails against congress for trying to get the money back? make up your mind.
You're just as ridiculous as you sound.
Yeah, I do want the money back. But I wouldn't advocate breaking the Constitution to get it back. Shame the employees. Threaten to release their names. There are other ways.
Trying to pigeon-hole me into a ideological box is not going to work. Like I said earlier, I speak for myself. I want what's best for this country. And violating the Constitution to make up for a previous mistake is just plain stupid.
White Russian
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