Tax AIG bonuses at 100%March 17, 2009 - by Donny Shaw
As David Waldman at CongressMatters points out, the scandal over executive bonuses at A.I.G. has set off a race to the hopper. The legislative solutions that’s picking up the most steam is Rep. Carolyn Maloney’s [D, NY-14] plan to levy a 100 percent tax on bonuses to AIG execs that are not related to a commission.
The bill’s not up on OpenCongress yet- we’ll update when it is. Here’s the text of a letter she sent around yesterday to members of the House:
Like many of you, I was outraged to learn over the weekend that AIG is paying out another $165 million in bonus compensation. For a company that has required $170 billion in U.S. taxpayer assistance and is 80% owned by the United States Government, this is clearly unacceptable. That is why I will be introducing legislation that will instruct the Secretary of the Treasury and the Internal Revenue Service to develop guidelines that tax at 100% any bonus compensation that is not directly related to a commission for any recipient of TARP funds where the United States government is the majority owner of the company. 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.
If you would like to cosponsor this legislation or if you have any questions, please do not hesitate to contact me or Edward Mills in my office at (202) 225-7944 or email@example.com.
CAROLYN B. MALONEY
Member of Congress