Question for those saying impossible for government to impose 100% tax on AIG bonuses

[960]

Why do you keep using the strawman that the gov can't target a single company?

Yes, it is unconstitutional to target one company with a specific tax.
But that doesn't matter, because that's not what we need to do.
We need a law that A) Taxes bonuses and excessive compensation paid out by all companies (Not just AIG) who received TARP money/other assistance. (Yes, I think 100% is a good base rate.. maybe penalties imposed for accepting the ill-gotten funds as well).

We also need to pass executive compensation caps, again for ALL companies. No need to target AIG, the laws are for ALL companies. If a company is posting losses, NO ONE FUCKING DESERVES A BONUS, RETENTION BONUS, PERFORMANCE BONUS etc. They don't even deserve their multi-million dollar base pay.
And the moral hazard has happened. These folks opened their hands and accepted free government money... they MUST expect and receive more oversight.

[earcandle]

1. Right on!

[ddeclue]

2. Yet tax loopholes are constructed all the time that are intentionally so specific

that they could only ever apply to the one company or industry that lobbied for them.

As long as you don't use the magic word "AIG", I think it would be ENTIRELY possible as long as the loopholes are.

Doug D.

[PensiveGadfly]

3. tax the bonus

This is from a post at the daily kos, but it seems to fit the topic, and I like it! This is from freshman congressman Gary Peters from a suburb of Detroit:

“It is beyond outrageous that the very people who brought AIG to its knees and helped create the current financial crisis are scheduled to receive hundreds of millions of dollars in bonuses while tax dollars keep their company afloat,” said Rep. Peters, a Member of the House Financial Services Committee. “These bonuses are in effect a raid on taxpayer dollars. The legislation I’m proposing will get taxpayers their money back. Congress must act swiftly on this matter to show AIG, other companies receiving federal support and taxpayers that we mean business when we say that tax dollars are not to be used to enrich company executives.”

Congressman Peters’ bill would create a 60 percent surtax on bonuses over $10,000 to any company in which the U.S. government has a 79 percent or greater equity stake in the company. Currently, AIG is the only company that meets this threshold. The 60 percent surtax would be added to the normal income tax rate, meaning that bonuses received this year by AIG executives paying the top 35 percent tax rate would be taxed at 95 percent. The remaining 5 percent would likely be paid in state and local taxes, so taxpayers would fully recover any AIG bonuses paid in 2009.

http://www.dailykos.com/storyonly/2009/3/16/709336/-Freshman-Congressman-Peters-Has-Solution-to-AIG-Bonus-Scam

[Frances]

4. The corporate TV pundits are 100% against

higher taxes for the super rich.

IMO there is a huge difference between those making $350,000 a year and those making millions/year.

If we could tax the bonuses at AIG 90 or 100%, that would open the door to higher taxes for the multi-million/year people.

So, don't expect the media to support the proposal.