Tuesday, March 17, 2009

AIG Bonus Conundrum -- Solved

From Politico.com comes Rep. Carolyn Maloney "with a solution to the AIG bonus conundrum: Tax them into oblivion".
  • The New York Democrat is proposing legislation that would tax the offending bonuses at 100 percent.
  • “This will allow AIG to continue to meet their ‘contractual obligation’ to pay these bonuses, but will ensure that the recipients are not allowed to keep this money,” Maloney explained in a Dear Colleague letter sent out today asking for co-sponsors.
  • Entitled the “AIG Taxpayer Protection Act,” the Maloney legislation would instruct Treasury and the Internal Revenue Service to develop guidelines that tax at 100 percent any bonus that is not directly related to a commission for any recipient of government bailout funds in cases where the federal government is the majority owner of the company.
  • Mega-insurer American International Group has received more than $170 billion in bailout funds, and the federal government owns about 80 percent of the company.
  • “The only reason they are even working is because the American taxpayer bailed them out,” Maloney said ... of the recipients of the $165 million in bonus compensation.
I REALLY like this plan.

1 comment:

  1. I really like this plan too! failing that, let's not give AIG any more money until they re-negotiate those contracts!