I have no problem with seeking a legal remedy to take the bonus money back out of AIG's corporate hide, but applying punitive confiscatory taxes against individuals could set a very dangerous precedent.
As a result of extraordinary abuses of the public trust by companies rewarding employees with excessive compensation while receiving billions in taxpayer assistance, Congress introduced legislation to recover taxpayers’ dollars.Using the tax code as a political weapon strikes me as a very bad idea that positively screams "unforeseen consequences."
• The bill would apply a separate income tax rate of 90 percent to bonuses received by individuals from companies which have received at least $5 billion from TARP. It would also apply to bonuses paid by Fannie Mae and Freddie Mac.
• For this purpose, bonuses will be defined as any retention payment, incentive payment, or other bonus which is in addition to regular employee compensation payable on a periodic basis.
• The special tax rate only would apply to individuals and families with overall income (including income other than bonuses) in excess of $250,000.
• The bill applies to payments received after December 31, 2008.