v'ܩ House Passes 90% Tax on AIG and Other Exec Bonuses
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House Passes 90% Tax on AIG and Other Exec Bonuses

March 19th, 2009

The House passed a bill today that will tax at 90% bonuses given by firms receiving bailout money. As I said in a recent article this is just a political game trying to keep the attention on AIG and off of how badly this whole situation has been managed by Washington.

This is from an article on CNN:

A similar proposal in the Senate would attempt to recoup bonuses by taxing both individuals and companies, but Rangel said House leaders decided against penalizing companies because they could simply ask for more taxpayer money.

Hey Rangel, how about you say no. Stop giving them them the taxpayer money. That was easy.

From the same article linked above:

Earlier Wednesday, President Obama also lashed out at the bonuses given to AIG executives, calling them “outrageous.”

“People are right to be angry. I am angry. … People are rightly outraged about these particular bonuses,” he said.

“But just as outrageous is the culture that these bonuses are a symptom of, that [has] existed for far too long; a situation where excess greed, excess compensation, excess risk-taking have all made us vulnerable and left us holding the bag.”

I agree that AIG and many others have screwed up badly. That I won’t argue, but what is “excess compensation?” These companies made a lot of money over the past decade. Should the employees not be paid for this? Do we not live in a capitalist country. Stop painting the top 5% as evil people. Most of them are smart hard working people who have done a lot for this country. Speaking of excess compensation, how did you like the 2.5 million dollars you made last year Mr. President? Would like to have that taxed at 90%?

Yes these companies suck. Yes they did a lot of stupid things. No the .09% of the 170 billion dollars the government has given AIG doesn’t matter. It is pocket change. Stop playing political games and do something worthwhile. Maybe start talking about how the rest of that money went in the front door and out the back to Goldman Sachs and the other counterparties. You make the argument that these employees would not have gotten their money if the government hadn’t bailed them out. Well, neither would have Goldman. Make them give 90% back to the Treasury as well.

Author: Derek Clark Categories: Finance, General Politics Tags:
  1. March 19th, 2009 at 21:34 | #1

    It’s funny how Rep. Bart Gordon calls himself a “blue dog” but is basically walking in lock-step with the expansion of government while also wasting taxpayer money on trips to Europe for him and his wife.



  2. March 19th, 2009 at 21:54 | #2

    @mjB Thanks for that link. Interesting to see the new and creative ways they find to waste our money.

  3. December 1st, 2009 at 19:35 | #3