"Denouncing a “squandering of the people’s money,” lawmakers voted decisively Thursday to impose a 90 percent tax on millions of dollars in employee bonuses paid by troubled insurance giant AIG and other bailed-out companies.
The House vote was 328-93. Similar legislation has been introduced in the Senate and President Barack Obama quickly signaled general support for the concept.
Republicans took Democrats to task for rushing to tax AIG bonuses worth an estimated $165 million after the majority party stripped from last month’s economic stimulus bill a provision that could have banned such payouts.
AIG has received $182.5 billion in federal bailout money and is now 80 percent government-owned.
Obama administration special envoy Richard Holbooke was on AIG’s board of directors in early 2008, when the insurance company committed to the bonuses, and during the previous years of aggressive investment strategies that brought the firm to brink of collapse. White House spokesman Tommy Vietor said Thursday: “Mr. Holbrooke had nothing to do with and knew nothing about the bonuses.”
Will this make things better, or is it just a “look good now” tactic for Congress and the White House?
They're running for cover and are fully ready and willing to sacrifice each other, if necessary, to save their own necks.
ReplyDeleteCorrect. A division of AIG is suing CFC for bad loan practices and the IRS for alleged unfair taxes.
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