House Passes Heavy Tax on Bonuses for Rescued Firms - 90% on bonuses

[masuki bance]

WASHINGTON — Spurred on by a tidal wave of public anger over bonuses paid to executives of the foundering American International Group, the House voted 328 to 93 on Thursday to get back most of the money by levying a 90 percent tax on it.

The measure easily surpassed a procedural hurdle requiring a two-thirds majority vote, thanks to considerable Republican support. The Senate will consider a roughly similar measure, perhaps next week. If something is approved in that chamber the House and Senate versions would have to be reconciled, so prospects for final passage of a bill are unclear.

...

Although the bonuses paid to the A.I.G. executives have aroused public fury for several days, they were in a sense hiding in plain sight. Three months ago, for instance, Representative Elijah E. Cummings, Democrat of Maryland, said Congress should investigate reports that A.I.G. was secretly giving bonuses to some employees.

Apparently the bonuses were not so much secret as under the radar. The White House has said, for example, that Treasury Secretary Timothy F. Geithner first learned of the bonuses on March 10. On Wednesday, A.I.G.’s chief executive, Edward M. Liddy, was met by a wave of anger at a House hearing, although some lawmakers were kind enough to point out that he was recruited to lead A.I.G. after it slipped into crisis.

http://www.nytimes.com/2009/03/20/business/20bailout.html?partner=rss&emc=rss

The Senate needs to get on this.

[Median Democrat]

1. If They Litigate This, Then Let AIG Execs Spend Bonuses Litigating To Keep Their Bonuses

I am cool with the tax.

BTW Who voted against it? Boehner?

[Skink]

2. And yet they couldn't pass a windfall profits tax on the oil companies last year.

[ellacott]

3. How will they tax the foreign citizens who received bonuses?

Do they have to abide by our tax law?

[Cronus Protagonist]

4. The people in London won't get hit by this BUT

Britain already has a large tax hit on excessive earnings. Not sure what it is now, but it used to be 95% over a certain amount of earnings.

[ellacott]

8. Wow, that's pretty high

Thanks for the info. :)

[OwnedByFerrets]

5. Now they can pat themselves on the back and say

"job well done" as the real criminals laugh loudly all the way to their offshore bank accounts.:mad: All just a big show.

[HiFructosePronSyrup]

6. Fantastic.

Now republicans can explain why they want the execs to keep the bonuses.

[tishaLA]

7. How did Cantor vote?

He was such a sniveling little republicon this morning.