House passes 90% tax on AIG bonuses
posted at 3:15 pm on March 19, 2009 by Allahpundit
328-93, which means the GOP split roughly evenly notwithstanding the news that some AIG employees will be returning their bonuses voluntarily. No surprise given the results of yesterday’s Gallup poll. I’ve reached the point the boss and Rick Santelli reached a few days ago and which this trader reached today: Aren’t we, er, missing the big picture?
The Fed yesterday committed to buy $1.5 trillion in assets, and all that we are talking about today is $146 million in bonuses for traders at AIG. I understand the politics and the optics of the situation but this is getting ridiculous. People need to get some perspective.
Initially I thought the tax would be a nifty way out of the bill of attainder problem, but Tom Maguire makes a sterling point about precedents. First they came for the bonuses…
Right now it’s AIG and Fannie Mae; later it will be Merrill and Citibank, and eventually it will be defense contractors, profiteering oil executives, or whomever the Congressional Dems single out as their whipping boy du jour.
And of course, rolling this ex post tax out at the same time the Fed and Treasury are trying to encourage private investors to partner up with the government to get the credit markets moving again is insane. What investor needs the likely aggravation to follow? Who needs to be hauled in front of Barney Frank a year from now in order to be blasted as a profiteer who exploited our national crisis for his own profit, which Barney will then tax back? Who will be daft enough to come out of retirement as Liddy did to endure the abuse Liddy took?
Follow the link and you’ll find that even Rangel’s iffy on the idea. Exit question: How much tighter can those congressional sphincters get? Click the image to watch.
Blowback
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Totally unconstitutional….do they even read the Constitution?
becki51758 on March 19, 2009 at 3:17 PM
Idiots pandering to idiots.
reaganaut on March 19, 2009 at 3:18 PM
How about a Bill requiring Congressional Democrats to pay back 90% of their kickbacks, bribes and (paltry in comparison) salaries?
We could pay for another of the Bed Crapper in Chief’s idiotic stimulus Bills with the revenue that’s generated.
NoDonkey on March 19, 2009 at 3:18 PM
Gird your loins! Tight sphincters are afoot!
lorien1973 on March 19, 2009 at 3:18 PM
somebody better tell getaclue that Bush snuck back to power over the economy again….
sven10077 on March 19, 2009 at 3:18 PM
I hope some of the employees sue the government. The hilarity will be awesome to watch.
OT! http://blogs.abcnews.com/thenote/2009/03/first-family-to.html Obamas want a garden, tended by White House Staff.
Enoxo on March 19, 2009 at 3:18 PM
This is both a Bill of Attainder, and an Ex Post Facto law (as they are taxing income already given).
Both are clearly not within the powers of Congress, and are expressly forbiden by the Constitution.
Ergo, any Congressman who voted for this bill is commiting TREASON, as they are not following their OATH to defend the Constitution.
Romeo13 on March 19, 2009 at 3:19 PM
I want the names of these repubicans that voted for this bill! What a disgrace.
jencab on March 19, 2009 at 3:19 PM
No one should be surprised. This gets scarier every damn day.
macummings on March 19, 2009 at 3:19 PM
60 days in office and Obama has given us 90% tax rates.
Simply breathtaking.
faraway on March 19, 2009 at 3:19 PM
What? read the Constitution?
Hey we don’t read – we just sign~
Is it time to vote ourselves a raise again??? Look Consensus!
Wander on March 19, 2009 at 3:19 PM
NO they obviously don’t read the COnstitution … nor the bills they vote on.
Why do you think America is in the shape it’s in.
tarpon on March 19, 2009 at 3:19 PM
No, but they do use it to wipe their backsides. Shameful and sickening display.
Keyser-Soze on March 19, 2009 at 3:20 PM
I have to assume they catch a glimpse of the text right before they wipe their @$$ with it.
Flyover Country on March 19, 2009 at 3:20 PM
They just used the Constitution for toilet paper.
Maxx on March 19, 2009 at 3:20 PM
We knew it was coming, the AIG Execs knew it was coming, about the only people not expecting a tax was some poor Inuit off hunting on some frozen tundra.
Question 1: If the AIG Execs give 100% of the bonus back are they still taxed?
Question 2: Since when is it fair for 435 people to gang up on 173?
Only in Sodom-on-the-Potomac.
SeniorD on March 19, 2009 at 3:21 PM
For comic relief, I imagine
LimeyGeek on March 19, 2009 at 3:21 PM
We’ve done retroactive taxes in the past.
Yes. But -for now- they are only on people we don’t like.
lorien1973 on March 19, 2009 at 3:21 PM
Dangit, Keyser. Your shuffling walk lulled me into thinking I had this one all figured out first.
Flyover Country on March 19, 2009 at 3:21 PM
Lovely precedent they set for future theft by taxes.
cntrlfrk on March 19, 2009 at 3:21 PM
Just remember when you sign a contract with the government it means nothing.
Maxx on March 19, 2009 at 3:22 PM
Not sure whether it amounts to treason, but they should certainly all be impeached/fired immediately.
LimeyGeek on March 19, 2009 at 3:23 PM
Oh , these guys will really fight for AIG to survive now..
the_nile on March 19, 2009 at 3:23 PM
BINGO@!
becki51758 on March 19, 2009 at 3:23 PM
It won’t stop here. You laid off a few employees, you get higher tax rates.
Didn’t hire enough minorities, higher tax rates.
Not union, higher tax rates.
Your business starts with “Wal” and ends with “mart”, higher tax rates.
Bishop on March 19, 2009 at 3:23 PM
Remember when there was something called a Constitution?
youngO on March 19, 2009 at 3:23 PM
The folks we need to feel sorry for are the folks that just sent back their bonuses. They are to be royally screwed.
In our tax system it is a matter of having received notice that they received income not that they actually have it. If some AIG exec received a $1m, then sent $500k back, they will get hit with a tax bill for the $1mx90%.
Congress strikes again. Our laws are now warped at the whim of the Congressional mob.
Dr. Dog on March 19, 2009 at 3:23 PM
Wow. Great point.
Key West Reader on March 19, 2009 at 3:23 PM
Really? Example?
LimeyGeek on March 19, 2009 at 3:23 PM
Rush was saying he was wondering which of the AIG folks voted for obama.. If they did, then “hoist by your own petard”
bullseye on March 19, 2009 at 3:24 PM
All contracts are being rendered meaningless by this bunch. Look at the mortgage bailout. Irresponsible people and deadbeats are gonna be allowed to renegotiate their loans. Now this charade with AIG. What good does Congress and the Obamination think will come out of this?
Doughboy on March 19, 2009 at 3:25 PM
Missed it by THAT much!
Keyser-Soze on March 19, 2009 at 3:25 PM
QFT
clearbluesky on March 19, 2009 at 3:25 PM
Slick how the democrats managed to protect their socialist bailout of AIG by ginning up a patented class warfare shtick by concentrating only on the bonuses? See how that works? Clever, eh?
The bailout was 165 Billion. The bonuses were 165 million. That is $1 in $1000.
keep the change on March 19, 2009 at 3:25 PM
Clinton 1993
lorien1973 on March 19, 2009 at 3:25 PM
I seem to recall that it’s also unconstitutional for the federal government to make a targeted tax against an individual or individual corp?
(That is, you can’t write a tax law that says AIG employees who got bonuses over $100,000 must pay a 90% tax rate)
Skywise on March 19, 2009 at 3:25 PM
I hope just one of them goes to the SUPREMEs with this. It is unconstitutional.
stenwin77 on March 19, 2009 at 3:25 PM
Why just AIG? Why not the bonuses paid to execs of Freddie and Fannie? To agree to pay bonuses to AIG execs, then single them out for such unconstitutional punishment when the misdeed sees the light of day, makes a mockery of our government.
DarkKnight3565 on March 19, 2009 at 3:26 PM
The Constitution was imposed upon us by patriarchal dead white men. Therefore it is evil and should be ignored.
/typical lefty.
$1.5 trillion vs. $146 million = 0.0001% = distraction
I’d sue. This isn’t a performance bonus, rather a retention payment. Taxing it at 90% is nothing more than involuntary servitude.
rbj on March 19, 2009 at 3:26 PM
In more than one place the Constitution specifically prohibits the legislature from punishing a group of people simply because they dislike what they do. You might not like the AIG bonuses but they were contractually sound and legal. This country is reverting to mob rule and everyone that hasn’t already done so should exercise their Constitutional right to own and bear arms for self protection while you still have that right and the Constitution still exists. The actions of this government have thrust us into dangerous times and every citizen should be wary of and prepared for what will follow.
rplat on March 19, 2009 at 3:26 PM
If the House can pass a 90% tax on AIG bonuses, what else can/will they tax at 90%? “First they came for the AIG executives but I was not an AIG executive , so I did not speak out…”
borg on March 19, 2009 at 3:26 PM
God save the King!
Wander on March 19, 2009 at 3:27 PM
relax… he had to set the upper tax limit somewhere.. now we know that it is 90%, so when the other taxes creep up, at least we can take comfort in the fact taht we’re not paying 90%
gatorboy on March 19, 2009 at 3:27 PM
Totally disgusting./ Wth
becki51758 on March 19, 2009 at 3:27 PM
Those were the days.
thomasaur on March 19, 2009 at 3:27 PM
How long do we go before we realized the law has failed us, and our options to take our Congress full of criminals to court are limited to very unsavory means?
MadisonConservative on March 19, 2009 at 3:27 PM
It’s for any company that received government bailout funds. For now.
Soon, it’ll be…
It’s for any company
that received government bailout funds.lorien1973 on March 19, 2009 at 3:27 PM
Totally unconstitutional….do they even read the Constitution?
becki51758 on March 19, 2009 at 3:17 PM
Oh that old thing? Its so outdated, we need something more up to date, more hip, something with more bling, more down, more … more … whatever those rap idiots say.
johnsteele on March 19, 2009 at 3:28 PM
Ah, Rick, there is no big picture in the world of soundbites.
DamnYankee on March 19, 2009 at 3:28 PM
I’d love for the AIG employees to suck the govn’t tit by making AIG’s lawyers take this thing all the way to the Supreme court… that’d be great to soak the taxpayers for a couple dozen more million because of the idiots in congress
gatorboy on March 19, 2009 at 3:28 PM
Maybe I’m giving the Dem’s too much credit but its almost seems that they took out the bonus legislation so they could enact this ridiculous tax and establish a greater precedent for even greater nonsense…Just crazy. I’m stunned and appalled. Why else would they take it out and then go crazy when they “found out” about the bonuses. Or maybe they are just THAT incompetent.
unrealcitizen on March 19, 2009 at 3:28 PM
So the Administration intervened to get bonus protection language in the stimulus bill. Congress passed the bill. The President passed it into law.
And now they want to punish the employees that took the money two branches of our Government said they could have????
Who does this not bother?
MayBee on March 19, 2009 at 3:28 PM
This is not just AIG, folks.
This effects almost every bank in the country.
We are screwed.
faraway on March 19, 2009 at 3:29 PM
Thanks. A wee bit off googling later turned up this gem
http://www.heritage.org/research/taxes/hl613.cfm
LimeyGeek on March 19, 2009 at 3:29 PM
If they are sucking our tits with tight sphincters…
Something tells me they are doing it wrong.
lorien1973 on March 19, 2009 at 3:29 PM
Not yet..give them time.
becki51758 on March 19, 2009 at 3:29 PM
What utter effing BS! Don’t they know they constitutionally cannot do this? Do they not understand this is a taking? How much is their little temper tantrum going to cost us?
Get rid of all of them!
skatz51 on March 19, 2009 at 3:29 PM
This is an all out attack on Capitalism!
Where is the Republican leadership?
huckleberryfriend on March 19, 2009 at 3:30 PM
Let’s see, we need to connect the companies who dealt with AIG, since they indirectly received federal money, let’s say, 75% if they receieved a bonus. Would that make people feel better about themselves?
I think any company that works on government contracts should be taxed at 69.125% for bonuses. It’s only fair, right?
$900 million to terrorists in Gaza – meh.
$165 million worth of contractually obligated bonuses – ZOMG!!!!11!!!!
reaganaut on March 19, 2009 at 3:30 PM
Next week it will be a 90% tax on Republicans. Then people that did not vote for Obama.
A new 90% tax for those not living in cities.
How about a 90% tax on those of a religion they don’t like.
I hope these AIG people sue and in the settlement they get twice the bonus that was to be paid.
albill on March 19, 2009 at 3:30 PM
Shhhh…they are busy digging holes.
lorien1973 on March 19, 2009 at 3:30 PM
This is totally illegal.
I hope the AIG employees who got bonuses get themselves a good lawyer and sue the pants off of these idiots in Congress.
That is, if this ‘tax AIG bonuses’ bill gets passed into law. I can’t see how it can being that its totally unconstitutional.
RedbonePro on March 19, 2009 at 3:31 PM
Wait.
Are they sucking our teets with tight sphincters?
If so, they might be doing something wrong.
lorien1973 on March 19, 2009 at 3:31 PM
Just remember in dealing with the government: YOU are bound by what you say and do, THEY are not.
johnsteele on March 19, 2009 at 3:31 PM
That’s true. But my knowledge of the fact they have ignored the Constitution before doesn’t make me feel any better about this time.
This is bad, but I reject the idea that the Constitution is dead and people should never say that. I agree however that these dirtballs in Congress trample and wound the Constitution every time they ignore it.
Maxx on March 19, 2009 at 3:31 PM
How long do we go before we realized the law has failed us, and our options to take our Congress full of criminals to court are limited to very unsavory means?
MadisonConservative on March 19, 2009 at 3:27 PM
At the current rate of destruction, probably sooner than we think.
Bishop on March 19, 2009 at 3:31 PM
Is this just AIG or is it any company that the Federal Government has seized (in exchange for worthless toll road tokens)?
How do you define ‘bonus’?
Should ‘wait persons’ waiting tables in your neighborhood bistro be worried about their tips?
Skandia Recluse on March 19, 2009 at 3:31 PM
Unconstitutional?
Really?
Well, why did so many gop vote yes?
“In all, 243 Democrats and 85 Republicans voted “yes” on the bill. It was opposed by six Democrats and 87 Republicans.”
Please explain.
getalife on March 19, 2009 at 3:32 PM
Getting Republicans to vote “yea” on a 90% tax on any sort of income is making a silk purse out of a sow’s ear for Congressional Dems. Nicely done. Now we’ve got the top tax rate set (90%) – don’t look at me, Mr./Ms. Republican Congressman, you voted for it, the only remaining question is to whom and to what income should that rate apply? Surely, you can’t draw the line at these bonuses.
jdp629 on March 19, 2009 at 3:32 PM
Hello. This effects almost every bank in the country.
faraway on March 19, 2009 at 3:32 PM
I agree; but lets not pretend this is the first time it’s ever happened. That’s besides the point.
Taxation is a weapon. And they are wielding it without any idea of how to use it.
n00bs have the sword of a thousand truths!
lorien1973 on March 19, 2009 at 3:33 PM
They’re going to run out of people to blame at some point, how will Barney Frank feel when the mob turns on him? Not so great?
Because I’m not persuaded.
John_Locke on March 19, 2009 at 3:33 PM
Just because members of both parties are retarded, doesn’t mean something is constitutional.
N’cest pas?
lorien1973 on March 19, 2009 at 3:34 PM
You don’t think they know what this does? I think it’s worse than incompetence…
John_Locke on March 19, 2009 at 3:34 PM
getalife… that we have idiots in congress on both sides of the aisle is a given. that they vote on asinine legislation is a given. the two do not make the bill constitutional
gatorboy on March 19, 2009 at 3:34 PM
He’ll say….mmmmm, tight sphincters.
And we’ll laugh.
lorien1973 on March 19, 2009 at 3:34 PM
Of course… it’s a living, breathing document.*
*It means whatever Leftists want it to mean.
mankai on March 19, 2009 at 3:34 PM
This is finally starting to really rattle me.
Up to this point I kind of took some of the “end-of-the-country-as-we-know-it” stuff that ‘s been flying around as your run of the mill hyperbole. I figured we survived Jimmuh, we survived Bubba, we’ll survive this.
But this time around the Donks are not even trying to hide their contempt for our free enterprise system and the rule of law. With one-party rule and nothing to fear from an enabling press, I fear they have already cemented in the means for them to rig our system to keep power in perpetuity before another election cycle arrives for us to stop them.
Please someone convince me I’m wrong.
VelvetElvis on March 19, 2009 at 3:34 PM
Anyone know what the bill number or name was? I’ll be looking up my congressman if I can find either of those bits of info… and filling out the “constituent survey” he’s just sent us all as appropriate.
Blacksmith on March 19, 2009 at 3:34 PM
no, just the ones that Poulson’s crew FORCED to do the bailout… relax, it is only for those evil rich people making over $250k
gatorboy on March 19, 2009 at 3:35 PM
No I really don’t think they understand at all.
If they did, they’d be evil. I’d prefer to think of them as simply incompetent.
lorien1973 on March 19, 2009 at 3:35 PM
they are coming to get you. keep your guns loaded & at hand.
kelley in virginia on March 19, 2009 at 3:35 PM
Rush.
Well played dems well played.
getalife on March 19, 2009 at 3:36 PM
Actually; smaller banks were forced to take money as well. Not just the big ones. The treasury made banks tank money, even those that didn’t want it. Some want to give it back.
And they are being punished for running their businesses properly.
lorien1973 on March 19, 2009 at 3:36 PM
Personally I want a 90% tax on the big salaries of every professional baseball/footballice hockey player whose team doesn’t win their championship. Taxpayers contribute big bucks to build many of the stadiums and those ijits owe me.
katiejane on March 19, 2009 at 3:36 PM
Is there a roll call? I called my representative this morning and I am wondering if I was on the “winning” side of the calls.
Cindy Munford on March 19, 2009 at 3:36 PM
Roll call.
Paul Ryan voted for the bailout, and voted for this. “Conservative” my ass. What a turncoat.
MadisonConservative on March 19, 2009 at 3:37 PM
Well, using the IRS as a weapon against opponents was a commonn Clinton strategy.
docdave on March 19, 2009 at 3:37 PM
Unconstitutional?
I want every one of the names of those Republicans so I can know who the RINO’s are. I will get the voting record later.
Maxx on March 19, 2009 at 3:37 PM
Most of these are coming to a Congress near you.Wait until they pass Cap-and-Trade and every electric company gets smacked with cap-and-trade charges — they are going to pass them directly to you and your electric bill will go up a few thousand dollars a year. Then your food will skyrocket because farmers are getting hit with cap-and-trade costs for working the farm and transporting the food — and they are going to pass those on to you too. Then the airlines, what few remain after they too get socked with cap-and-trade costs, will pass those on to you as well and New York-Chicago will be $2000 in steerage.
Obama is out to make America a Socialist workers’ paradise in which no one has more or less than anyone else (except the elites of course). Comes the revolution …
johnsteele on March 19, 2009 at 3:38 PM
It’s really entertaining having you here. But honestly, you are a very stupid person. Even by internet standards.
Chuck Schick on March 19, 2009 at 3:38 PM
This is very scary territory. The government not only overturning contracts, but their own bloated spending bill and the special protection Chris Dodd created in one stroke.
The people that made this disaster are becoming dictators.
dogsoldier on March 19, 2009 at 3:38 PM
Well played dems well played.
getalife on March 19, 2009 at 3:36 PM
Yes, well played on the shredding of the Constitution and lying about your role in the AIG fiasco, demorats. Your rank and file supporters are obviously pleased.
No wonder the libs are going to get swept out, one way or another.
Bishop on March 19, 2009 at 3:39 PM
Why didn’t I think of this?
Do you prefer to think they’re incompetent or do you not believe they can be evil? It’s a fairly important distinction…
John_Locke on March 19, 2009 at 3:39 PM
Hot damn. My Representative voted against it. Best Republican in the House.
He’s also the first Congresscritter to call for Giethner’s resignation.
Go Mack!
Enoxo on March 19, 2009 at 3:39 PM
Just hit me…
On your W-2, it just reports wages… which includes bonuses.
This will be reported on their W-2 as wages, and thus taxable income… thus the bonus will be taxed at the normal rate
THEN they add 90% of that to bonus total in further taxes… thus that money gets taxed TWICE.
So, they are taxing this money, including state taxes, at like 139% of the bonus earned… and that does not even include soc sec…
Romeo13 on March 19, 2009 at 3:40 PM
Sorry can’t do that. After ACORN and Obama get finished with the 2010 Census you’ll have to be Sherlock Holmes to find a non-Democrat in government.
johnsteele on March 19, 2009 at 3:40 PM
Forgive my ignorance but is this law now, or does the Senate have to vote on it too?
unrealcitizen on March 19, 2009 at 3:40 PM
Really?
99% of the congress voted for the Patriot Act. Do you still feel that it is unconstitutional?
Obama voted to legalize mass wiretapping. Do you feel that is now constitutional?
Skywise on March 19, 2009 at 3:41 PM
Term limits folks, term limits.
Knucklehead on March 19, 2009 at 3:41 PM
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