MSNBC: House passes bill taxing AIG, other bonuses (90 percent tax on some bonuses)

[Peeping Wizard]

Those taxes are certain to be tested in the Courts. The Constitituion prohibts taxes that are purely punative. Congress really did a piss poor job here. If they didn't want AIG handing out bonuses, they should have made that clear before handing out the TARP funds.

[Peeping Wizard]

Punish AIG all you want, take the entire bailout back. But the execs had contracts that the Feds did not void before giving the money so they are instituting a retroactive tax... Very Dangerous policy to think it good business to allow the criminals in congress the power to confiscate individuals wealth because the don't like the legal means with which it was acquired.

Again, we shoudl not have issued AIG the blank check in the first place. Let them go out of business if they are doing business in an unsustainable way.

Stupid "leaders"...

You are spot on. Congress is a total failure. They would not have let AIG fail however because AIG funds Congress' insurance plans.

[Burgold]

The slippery slope is fine as long as they stay away from your hill?

You and I don't know what the people did to earn the contracts that were written up a year ago.

Well, here I disagree. We can be pretty darn sure given the state of the company that many of these bums did not "earn" a bonus. The state of the company defines that.

I share the indignation of many of them using bailout funds to fund "bonuses" and think that there should be away to stop that, but I think the method they chose was poorly thought out. I do think that as a major stockholder/financeer/whatever of the company the U.S. gov. should have a lot of say on what kind of contracts/compensations/etc goes out.

I'll also say I have no worries whatsoever about these people being retained and fleeing to a better job in the finance and banking sector. Afterall, have you looked at the finance and banking sector? We could get some gets running lemonaid stands who could do a better and more honest job.

[ljs]

The danger is...

We might like it as an instance of revenge... who doesn't like a game of "off with their heads!" the question is once you get a taste for lopping off heads who knows who will catch the axeman's fancy?

So true Burgold. It's a scary thought that our government does this. I mean, yeah, AIG should never have been able to use the money for bonus in the first place, but that just goes to show that our lovely congressmen didn't do their job right in the first place. Two wrongs don't make a right.

[stevenaa]

Anyone who supported government intervention into this mess in the first place is out of their mind. Let them freaking fail. The good debts will be carried by others. The entire banking system will not collapse.

[Jeeb]

Those taxes are certain to be tested in the Courts. The Constitituion prohibts taxes that are purely punative. Congress really did a piss poor job here. If they didn't want AIG handing out bonuses, they should have made that clear before handing out the TARP funds.

I have a problem with it because i feel its ex post facto. It sets a pretty dangerous precedent and congress is just trying to make it look like they're doing something because they dropped the ball in the first place. I dont like giving these people their bonuses but if it upholds contract law, there's really not much else choice.

[SkinsOrlando]

Nothing but a cover their ass bill by congress. They ****ed this up with the way they wrote the bailout bill, now their trying to save face. Hopefully the American public sees through this.

**IMPEACH CONGRESS**

[Prosperity]

I have a problem with it because i feel its ex post facto. It sets a pretty dangerous precedent and congress is just trying to make it look like they're doing something because they dropped the ball in the first place. I dont like giving these people their bonuses but if it upholds contract law, there's really not much else choice.

yeah, this thing sounds shady

there are going to be lawyers involved

[twa]

Indeed, SO

Nothing but throwing up smoke to appease the masses.

No one want to touch this?

Why stop there? ... tax the payments on credit swaps,bailouts ect..

What makes the payments AIG has doled out (from our money) any damn different?...you are rewarding bad business choices either way.

[hyphenatedbren]

Well, here I disagree. We can be pretty darn sure given the state of the company that many of these bums did not "earn" a bonus. The state of the company defines that.

Except that these recent bonuses were "retention bonuses" and so simply by staying at AIG they "earned" them. Somewhere along the line these executives were determined to be a necessity and so in order to keep them AIG offered huge bonuses simply for sticking around. Unfortunate as it might be the current state of the company has nothing to do with whether or not they get bonuses of this type.

[HokieSkinsFan]

In "Real" capitalism, success is copied, failures go out of business. In our American socialism, Failure is rewarded (With bailouts, etc) while success is punished.

What successes have been punished?

[HokieSkinsFan]

They are really screwing themselves with this. This tax applies to any company that accepted bailout money. You can best belive the top talent is going to stay far away from comapnies that accept bailout money.

Fine. They can get real jobs then. I don't think there's any "top talent" left anyway. Wall Street is a disaster.

[Jeeb]

In "Real" capitalism, success is copied, failures go out of business. In our American socialism, Failure is rewarded (With bailouts, etc) while success is punished. We are so backwards and our leaders are so braindead. What is worse is that our population seems to accept incompetence in the house and senate because the deliver the federal pork to the local community.

Enjoy bowing down and eating the :pooh: that our idiot leaders are feeding us. I personally don't like the taste or smell of it.

Define "real" capitalism, government subsidies have existed almost as much as this country has.

Drive on a highway - Product of "Socialism"

Ride a train - Product of "Socialism"

In the 40's and 50's the income tax rate went as high as 90%

[JohnLockesGhost]

It's both ex post facto and a Bill of Attainder. Unconstitutional to the core, but it's not like the Congress will let the Supreme Law of the Land get in the way of their righteous indignation.

[twa]

How about we collect back taxes from our own stimulus payments???

13 firms receiving federal bailout owe back taxes

http://news.yahoo.com/s/ap/20090319/ap_on_go_co/bailout_delinquent_taxes

At least 13 firms receiving billions of dollars in bailout money owe a total of more than $220 million in unpaid federal taxes, a key lawmaker said Thursday. Rep. John Lewis, D-Ga., chairman of a House subcommittee overseeing the federal bailout, said two firms owe more than $100 million apiece. "This is shameful. It is a disgrace," said Lewis. "We are going to get to the bottom of what is going on here."

The House Ways and Means subcommittee on oversight discovered the unpaid taxes in a review of tax records from 23 of the firms receiving the most money, Lewis said as he opened a hearing on the issue.

The committee said it could not legally release the names of the companies owing taxes. It said one recipient had almost $113 million in unpaid federal income taxes from 2005 and 2006. A second recipient owed almost $102 million dating to before 2004. Another was behind $1.1 million in federal income taxes and $223,000 in federal employment taxes.

"If we looked at all 470 recipients, how much would they owe?" Lewis asked.

[GibbsFactor]

Everyone here still thinking the bailouts were a necessary thing?

[SkinsOrlando]

Everyone here still thinking the bailouts were a necessary thing?

I believe theres a large majority on this board who've been against them for along time.

[sacase]

Fine. They can get real jobs then. I don't think there's any "top talent" left anyway. Wall Street is a disaster.

Why do people think this is the last job they are going to get, these dudes will move to another high paying job. Companies who have taken bailout money will have a hard time attracking top talent. Why would anyone want to work for a company that couldn't give out bonuses when they can work for one that can?

[twa]

How about expanding this tax to the political contributions any firm receiving bailout funds????

http://cnsnews.com/public/content/article.aspx?RsrcID=45262

according to the Center for Responsive Politics, a non-partisan group that tallies federal campaign contributions, many lawmakers received large campaign contributions from AIG employees during the 2008 election while the company was in financial straits.

Some of the donations to lawmakers include Sen. Chris Dodd (D-Conn.), $103,100;then-Senator, now President Barack Obama(D-Ill.), $101,332; then-Senator, now Vice President Joe Biden (D-Del.), $19,975; Sen. John McCain (R-Ariz.), $59,499; former Sen. Hillary Clinton (D-N.Y.), $35,965; Sen. Dick Durbin (D-Ill.), $11,000; and Sen. Max Baucus, (D-MT), $24,750.

“During that period of time when these companies were imploding and coming to the American people and asking for funds -- I think political contributions coming during that time to Senator Dodd or others certainly bears further examination,” Pence told CNSNews.com.

[Jeeb]

It's both ex post facto and a Bill of Attainder. Unconstitutional to the core, but it's not like the Congress will let the Supreme Law of the Land get in the way of their righteous indignation.

It screams of mob rule and I think it's just to save face, but the second it's applied I would hope the Supreme Court takes a giant dump on it like it should.

[GibbsFactor]

It screams of mob rule and I think it's just to save face, but the second it's applied I would hope the Supreme Court takes a giant dump on it like it should.

Deflection, what politicians do best.

[mistertim]

Except that these recent bonuses were "retention bonuses" and so simply by staying at AIG they "earned" them. Somewhere along the line these executives were determined to be a necessity and so in order to keep them AIG offered huge bonuses simply for sticking around. Unfortunate as it might be the current state of the company has nothing to do with whether or not they get bonuses of this type.

Haha. So they come up with a different name to call the bonuses so it doesn't sound as bad and that means it's ok? Seeing as how they ran the company into the ground, I find it hilarious that anyone believes that any executives there were a "neccessity" and had to be retained.

[GibbsFactor]

They wouldn't have anywhere to stay without the bailouts, I think that's retention bonus enough.

[hyphenatedbren]

Haha. So they come up with a different name to call the bonuses so it doesn't sound as bad and that means it's ok? Seeing as how they ran the company into the ground, I find it hilarious that anyone believes that any executives there were a "neccessity" and had to be retained.

They come up with a different name because the bonus is meant to reward something different. I don't think they were a necessity but my opinion in that regard is meaningless. The reasoning behind the retention bonuses is that what they do in that division is so complex that you need continuity of staff. True or not is irrelevant. What's relevant is that the bonus were not performance based so the argument that they don't deserve them based on the company's performance is a straw man.

[The 12th Commandment]

I hate to say it but it seems to be government by poll. We see what that did to California I don't like it.

The fact that they were retention bonuses from contracts made at the beginning of '08 is really irrelevant. Once the goofy thing was given the seal of approval congress should of just taken their medicine and moved on. Something equally as outrageous would've come along in short order giving them a chance to use that self-righteousness.