New bill would tax AIG bonuses at 100% Options

[mipadi]

From Newsday:

The $165 million in bonuses set to go to American International Group executives would be taxed at 100 percent under a new bill introduced Tuesday in the House.

President Barack Obama is moving to block the AIG bonuses, but it's unclear whether he can get the payments back from the company, which is awaiting a $30-million installment in federal bailout money.

The sponsor of the new bill, Rep. Steve Israel (D-Huntington), said Tuesday that "if we can't kill the bonuses, we'll tax the bonuses.

"American families shouldn't be forced to reward these professional financial failures with extravagant bonuses that could buy fancy cars and yachts," Israel said in a statement. "AIG may not like it, but since they had to come to the federal government for help, the federal government now has a say in how they spend taxpayer money."

[brooklyneast05]

i was discussing this exact thing with my mother last night. i think it's a great idea. i'm amazed that people still think they deserve a bonus at all. a bonus for what? having a failing company? i don't get it. their lucky to still have a job, you'd think they'd be satisfied enough with that.

this bill is needed