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WASHINGTON – Denouncing a "squandering of the people's money," lawmakers voted decisively Thursday to impose a 90 percent tax on millions of dollars in employee bonuses paid by troubled insurance giant AIG and other bailed-out companies. The House vote was 328-93. Similar legislation has been introduced in the Senate and President Barack Obama quickly signaled general support for the concept.
"I look forward to receiving a final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated," the president said in a statement.
Article 1 Section 9 - Limits on Congress
No Bill of Attainder or ex post facto Law shall be passed.
Invest in Pepto-Bismal.
Originally posted by Rockpuck
Unless the IRS is planning on sending these guy's a bill for the money owed, and I would also bet these guys have good lawyers, which would have an open and shut case.
Originally posted by GAOTU789
The other is what will be the reaction of the general population of the US when the execs of one of the companies that has pushed the world to where it is now fighting and winning to keep taxpayers money as a bonus for the stellar job they have done.
Would it be the straw that broke the camels back for some?
Originally posted by loam
The United States of yesterday is taking her last breaths.
Welcome to a brave new world, people.
[edit on 19-3-2009 by loam]
According to the Huffington Post, for over a year now the U.S. Federal Reserve has been pumping hundreds of billions of dollars into foreign central banks, which are then using the funds to bailout financial institutions inside their own borders.
“The program has so far gone unreported in the mainstream media and is a major expansion of Federal Reserve involvement in the global economy,’ Ryan Grim of the Huffington Post writes. “It represents a stark break from the prior role of the Fed, moving it into territory more traditionally occupied by the International Monetary Fund (IMF).”
Originally posted by jsobecky
More importantly, it is unconstitutional on two fronts:
It passes an ex post facto (after the fact) law. It makes something illegal today that you committed yesterday.
March 2008 -- AIG agreed to the retention bonuses . The company's bets on mortgage-backed securities had already started to sour, forcing AIG to take a $5 billion hit.
Sept. 16, 2008 -- The government "rescued" the company with Bailout I -- an $85 billion loan.
Sept. 22, 2008 -- The company notified the Securities and Exchange Commission -- a week after the first bailout -- that the retention bonuses program had come into effect. Approximately 130 executives would get the first installment in December 2008, and the remainder in December 2009.
Oct. 9, 2008 -- AIG executives go on a "junket" at a California resort .
Dec. 1, 2008 -- Congressman Elijah Cummings wrote  to AIG CEO Edward Liddy, asking for full information about the retention bonuses, calling the program a "slight of hand" to get around the company's promise not to pay performance bonuses.
March 11-12, 2009 -- An Obama administration official told Reuters  that Treasury Secretary Tim Geithner only found out about the bonuses last Tuesday, called AIG to protest them on Wednesday and told the administration on Thursday.
Senate Banking Committee chairman Chris Dodd suggested one of the more severe solutions: that the government tax 100% of the bonuses, thereby recouping the losses. It may have been overcompensation, so to speak, on Dodd's part. The National Republican Senatorial Committee was quick to point out that Dodd had amended the stimulus plan to make a specific "exception for contractually obligated bonuses agreed on before Feb. 11, 2009." That exception gives cover to the AIG bonuses