Huffpost Homepage

Proposed Bonus Tax May Imperil Bailout

Posted: Updated:

Congress moved yesterday to levy punitive taxes on bonuses paid by financial firms receiving government aid, threatening to undermine federal efforts to rescue the financial system by driving away participants in the programs.

A quickly assembled House bill was approved 328 to 93. It struck hard at Wall Street's compensation system, which has come under fire because of the $165 million in bonuses distributed last week by American International Group to executives of the troubled unit that helped lead the insurance giant to the brink of collapse. Under the legislation, those who received bonuses of more than $125,000 would surrender 90 percent of their payments to a special income tax.

Read the whole story at Washington Post

Around the Web

Steve Young: TAX EM!: AIG Bonus Solution

Rep. Eric J.J. Massa: Demand 100% tax on bailout bonuses!

The Hill’s Blog Briefing Room » Rangel pressed on AIG bonus tax ...