Legislation & Lobbying
Outraged Congress Mulls Special AIG Bonus Law: Tax Could Be 100%
Posted Mar 17, 2009 3:35 PM CST
By Martha Neil
There's growing public outrage over news that some $165 million of a taxpayer-funded $180 billion bailout of American International Group is being paid out in bonuses to those who helped drive the insurer into its near-demise. But as some federal officials suggest litigation as a possible taxpayer recovery option, others apparently are thinking creatively.
Among the latter set is U.S. Rep. Gary Peters (D-Mich.), who is proposing a special 60-percent surtax on bonuses above $10,000 paid by companies in which the U.S. has at least a 79 percent equity interest. Combined with other federal, state and local taxes, that could well result in a total tax bill of 100 percent on such bonuses, reports Reuters.
"Currently, AIG is the only company that meets this threshold," says Peters in a written statement. "The legislation I'm proposing will get taxpayers their money back."
Additional coverage:
New York Times: "Fingers Are Pointed Across Washington Over Bonuses "
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Comments
John Doe
Mar 17, 2009 9:41 PM CST
The flaw with this scheme is that many of those receiving large bonuses from AIGFP are employed overseas and are not US citizens. Thus, such individuals would not be subject to this proposed tax.
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sam
Mar 18, 2009 7:13 AM CST
a tax at 100% is nothing but total BS. why doesn’t obama just come and steal our houses and our cars. obama didn’t have to give aig this last round of billions if he was upset by the bonus structure. maybe if obama would actually due some due dilligence, some vetting before he shoots from the hip we wouldnt be in the mess.
is obama going to appoint one of his elitist criminal tax dogers to collect this money - what will the obama tax cheat spend it on?
the government has no right taking 100% of what a corporation gives its workers - it’s not the workers fault they got the bonus. it’s obama’s friends who are the ceo and on the board.
obama doesn’t have a clue
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sam
Mar 18, 2009 7:15 AM CST
Maybe Gary Peters (D-Mich) can impliment a bill that will not give himself a pay raise every year.
Gary Peters is crying wolf while at the same time Gary Peters is getting richer with a nice fat automatic pay raise every year even if he doesn’t deserve it while the american people lose their jobs.
Gary Peters is a hypocrite.
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Tom
Mar 18, 2009 12:41 PM CST
Qoute of the day
“Quite simply, the Timothy Geithner experience has been a disaster. The Treasury Department is in disarray. Taxpayer dollars are being wasted. America’s economy hangs in the balance. America needs and deserves a treasury secretary who can truly lead us forward,”
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associate
Mar 18, 2009 3:59 PM CST
I really do find all of this quite funny. I was screaming “DON’T GIVE THEM MY MONEY.” But they did it anyway. Now they want to complain that AIG is honoring its existing contracts? I find it downright comical. Watching Obama, Pelosi, and Geithner tripping all over each other is like one of those good black and white 3 stooges episodes. You can’t “community organize” in big business. We’re here to make money, not friends.
As an aside, who wants to do business with an insurance company run by a govn’t that can arbitrarily alter the terms of your contract? Anyone?
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Joy
Mar 19, 2009 10:06 AM CST
Congress knew about these bonuses all a long. Chris Dodd needs to resign, he is the one who put it in the bailout plan. Congress should leave these people alone and quit threating those who received the bonuses and their families.
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sam
Mar 20, 2009 6:29 AM CST
March 19 (Bloomberg)—Senate Banking Committee Chairman Christopher Dodd said the Obama administration asked him to insert a provision in last month’s $787 billion economic- stimulus legislation that had the effect of authorizing American International Group Inc.’s bonuses.
Dodd, a Connecticut Democrat, said yesterday he agreed to modify restrictions on executive pay at companies receiving taxpayer assistance to exempt bonuses already agreed upon in contracts. He said he did so without realizing the change would benefit AIG, whose recent $165 million payment to employees has sparked a public furor.
http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aT_tMXRy2vDs
The AIG bonus was something Obama wanted to give to his elitist ivy league friends. Now that Obama got caught he is trying to cover his tracks.
Obama needs to resign
Geither needs to resign
Dodds needs to resign
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