Thu 19 Mar 2009
Interesting news tidbit:
U.S. House Set to Vote on 90% Tax Targeted at Executive Bonuses
U.S. House Democratic leaders have set a vote for today on a proposed 90 percent tax on executive bonus payments by companies receiving more than $5 billion in federal bailout funds.
The move is obviously targeted at AIG, but will include many other companies receiving bailout money.
One thing that people tend to forget is that Congress makes the rules, and if you screw people over badly enough, even if what you did was technically legal, you will be the target of political backlash and revenge.
Congress is effectively saying, when all else fails, change the rules.
In my opinion, it’s about time.
March 21st, 2009 at 3:30 pm
I have a more cynical reaction: it’s a big distraction from the real issue. “Hey look we are fighting for you, America! We’re going to get your millions back! Aren’t we teh awesome?”
March 21st, 2009 at 4:11 pm
I agree — the $165m is a side-show, but at least some semblance of accountability is being entertained.
I for one am actually not that surprised that AIG chose to pay bonuses. It is a natural consequence of the nature of the people involved and providing them with bailouts.
At the very least, we need to make sure those in a position to do this in the future are at least worried about the rules changing on them so they can’t get away with all their ill gotten gains intact.