90% tax? Might as well go the full course and tax 100%!
AFP - Friday, March 20WASHINGTON (AFP) - - Swept up by a wave of populist economic anger, the US House of Representatives overwhelmingly voted Thursday to slap a 90 percent tax on bonuses for top executives at bailed-out firms like AIG.
The Democratic majority rallied a large swath of President Barack Obama's Republican critics as lawmakers voted 328-93 for the legislation as the outcry over the payouts raised the heat on Treasury Secretary Timothy Geithner .
"We want our money back, and we want our money back now," Democratic House Speaker Nancy Pelosi said during the often bitter debate. "Here's one way to get it."
The 90 percent tax, written with American International Group in mind, would apply to employees whose total annual pay exceeded 250,000 dollars at firms that received more than five billion dollars in government rescue funds.
"Today's vote rightly reflects the outrage that so many feel over the lavish bonuses that AIG provided its employees at the expense of the taxpayers who have kept this failed company afloat," Obama said in a statement.
The Senate could as early as Friday take up its own bonus-hunting measure, which could impose excise taxes of up to 70 percent, but efforts to act quickly on the House bill hit a snag as Republicans demanded hearings before any vote.
The two chambers would need to reconcile any differences before Obama can sign the measure into law.
"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," Obama said during a trip to California.
AIG, alive only thanks to 170 billion dollars in government rescue money, dished out 165 million dollars in bonuses to top executives, including some in the division blamed for putting the once mighty insurer on life support.
(continues)
AFP - Friday, March 20WASHINGTON (AFP) - - Swept up by a wave of populist economic anger, the US House of Representatives overwhelmingly voted Thursday to slap a 90 percent tax on bonuses for top executives at bailed-out firms like AIG.
The Democratic majority rallied a large swath of President Barack Obama's Republican critics as lawmakers voted 328-93 for the legislation as the outcry over the payouts raised the heat on Treasury Secretary Timothy Geithner .
"We want our money back, and we want our money back now," Democratic House Speaker Nancy Pelosi said during the often bitter debate. "Here's one way to get it."
The 90 percent tax, written with American International Group in mind, would apply to employees whose total annual pay exceeded 250,000 dollars at firms that received more than five billion dollars in government rescue funds.
"Today's vote rightly reflects the outrage that so many feel over the lavish bonuses that AIG provided its employees at the expense of the taxpayers who have kept this failed company afloat," Obama said in a statement.
The Senate could as early as Friday take up its own bonus-hunting measure, which could impose excise taxes of up to 70 percent, but efforts to act quickly on the House bill hit a snag as Republicans demanded hearings before any vote.
The two chambers would need to reconcile any differences before Obama can sign the measure into law.
"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," Obama said during a trip to California.
AIG, alive only thanks to 170 billion dollars in government rescue money, dished out 165 million dollars in bonuses to top executives, including some in the division blamed for putting the once mighty insurer on life support.
(continues)
