Legislation & Lobbying
Outraged Congress Mulls Special AIG Bonus Law: Tax Could Be 100%
Posted Mar 17, 2009, 03:35 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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