THE BLOG
05/31/2010 05:12 am ET | Updated May 25, 2011

It's Alive! (A Wall Street Bonus Tax, that is)

Remember that Wall Street bonus tax that a couple Senate Democrats unsuccessfully floated this month? It's not dead yet.

As we recently reported, the bonus tax initially failed amid opposition from the Chamber of Commerce and hesitation among moderate Democrats and key New York politicians, including Sen. Charles Schumer.

But now the plan is making a comeback. Politico noted this morning that Sen. Barbara Boxer lobbied for the bonus tax in a meeting last week with Treasury Secretary Timothy Geithner. We've also heard murmurings that Boxer could try to attach the bonus tax to the financial regulatory reform bill making its way through the Senate.

Boxer, along with Virginia Democrat Jim Webb, is sponsoring the one-time 50 percent tax on 2009 bonuses of more than $400,000. The tax would apply to only 13 firms--including Fannie Mae and Freddie Mac--that received $5 billion or more in federal bailout money. The Senate's number two Democrat, Richard Durbin of Illinois, has signed on to the plan.

We put in a call to Boxer's office to learn how receptive Geithner was. We'll update you if and when we hear back.