From the WSJ:
The House gave strong approval to legislation intended to recoup bonuses paid by American International Group Inc. and other recipients of federal aid, after a sharp-edged debate that dramatized populist outrage over the government’s sweeping efforts to prop up the nation’s financial system.
The legislation was rushed to the floor by Democratic leaders amid a storm of protest among rank-and-file lawmakers over AIG’s decision to pay bonuses to hundreds of current and former employees, while receiving more than $100 billion in taxpayer assistance. Approved on a 328-93 vote, the measure would impose a 90% surtax on the disputed payments, effective for bonuses made after Dec. 31, 2008.
The legislation would apply widely to payments by all institutions that have received at least $5 billion in taxpayer aid. The special levy would be in addition to existing income taxes, and would apply to bonuses received by individuals with at least $250,000 in adjusted gross income.[...]
[...]Under the plan, the first $250,000 of compensation including any bonuses earned by executives at the firms would be taxed at normal federal income tax rates. Any bonus over that amount would be taxed at a much higher rate of 90%.
The Senate is working on its own plan to try to recoup the bonuses. Lawmakers there have yet to roll out their legislation, although according to Sen. Max Baucus ( D., Mont.), the chairman of the Finance Committee, a bill will be introduced later Thursday.
The Senate bill is much broader than the House version — taxing bonuses at any company that received federal assistance, not just the largest ones. It would tax bonuses at 70%, split evenly between the company paying the bonus and the employee receiving it.[...]
I will have commentary on this issue in tonight’s video update.
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No comment on the bailout out of D3 suppliers? Did you know that Ford, GM, and Chrysler can choose which suppliers get bailout funds and which suppliers get fed to the sharks? Managable debt will get serviced, large debt will not?
That is one way for additional bailout funds to be covertly funneled to D3 (money laundering). D3 won’t have to pay down their debt to the suppliers because the government just covered the bill or if they are not on the short list the supplier will be allowed to fail. This is a well know Detroit cycle.
I wonder if Uncle Sam will pay by cable bill this month?
big gov attacks the small man