Congress is looking at ways to deal with the outrage surrounding AIG's controversial bonuses.
Senate Majority Leader Harry Reid announced on the Senate floor Tuesday that the tax-writing Senate Finance Committee will pursue a legislative fix in such a way that the "recipients of those bonuses will not be able to keep all their money -- and that's an understatement."
Senate Finance Committee Chairman Max Baucus, D-Montana, will propose a special tax within the next 24 hours, Reid said.
"I don't think those bonuses should be paid," Baucus said Tuesday.
AIG has received $173 billion in U.S. government bailouts over the past six months. The provision would help the government get back the money in the form of tax revenue.
The special-tax idea was first floated Monday by Sen. Chris Dodd, chairman of the Committee on Banking, Housing and Urban Affairs.
At an unrelated hearing Tuesday at which IRS Commissioner Douglas Shulman was testifying, Baucus asked the nation's top tax official, "What's the highest excise tax we can impose that's sustainable in court?"
Shulman did not respond directly, but Sen. Bill Nelson, D-Florida, chimed in to suggest the tax could be as high as "90 percent." - CNN
I am just as angry as everyone about these stupid bonuses being paid to the Morons who drove their Companies into the ground. But, I am afraid of what this may do in the long run. Congress has a knack for writing good intentioned laws that backfire. Who else is this going to hit? We will have to see the law first I guess.
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