Dems Threaten to Tax AIG Bonuses
The problem with all of this populist outrage about the bonuses being paid to AIG executives is that the company is contractually obligated to pay them, which means that if AIG reneges, the execs can and will sue the pants off the already pantless insurance giant. That’s why Barack Obama, for all his angry theatrics, is essentially powerless to stop it.
So to get around this little problem embarrassing the heck out of our new president, Congressional Democrats are threatening punitive taxes.
WASHINGTON – Congressional Democrats vowed Tuesday to all but strip AIG executives of their $165 million in bonuses as expressions of outrage swelled in Congress over eye-catching extra income for employees of a firm that has received billions in taxpayer bailout funds.
“Recipients of these bonuses will not be able to keep all of their money,” declared Senate Majority Leader Harry Reid, in an unusually strong threat delivered on the Senate floor. “If you don’t return it on your own we will do it for you,” said Chuck Schumer of New York.
Frank says: