04/17/2009 05:12 am ET Updated May 25, 2011

Demand 100% tax on bailout bonuses!


It's been an incredibly busy day in our office. Last night I met with Congressman Steve Israel and signed onto his bill, The Bailout Bonus Tax Bracket Act of 2009, which if passed will tax bailout bonuses over $100k at a rate of 100%.

I will not stand by and be silent while these corporate swindlers make off with our tax dollars.

We held a press conference earlier today and I wanted to share this with you. If you believe as I do that we must hold AIG executives accountable and that Congress should get into their wallets and get our money back, please comment and help spread the word.

Below is a video of part of the press conference as well as the press release our office released today.

Thanks again and I look forward to reading your comments,

-Eric Massa

Congressman Eric Massa takes action to recoup bonuses from AIG

Rep. Massa signs on as an original co-sponsor to legislation designed to tax bonuses over $100,000 at a rate of 100% at companies that received TARP funds

WASHINGTON, DC - Today Congressman Eric Massa signed on as an original Co-Sponsor to The Bailout Bonus Tax Bracket Act of 2009, which is being presented by Congressman Steve Israel. The bill is designed to recoup American tax dollars which have been used for executive bonuses like those at AIG. This bill, if passed, will tax executive bonuses over $100,000 from companies that received TARP funds at a rate of 100%.

"The American public demands action and that's why I am working to get these out of control AIG executive bonuses back," said Congressman Eric Massa. "Today we will present the Bailout Bonus Tax Bracket Act of 2009 to get our money back from the executives of companies that received TARP funds. If you received a bonus of more than $100,000 after the bailouts from a company that received TARP funds, everything above that $100,000 will be taxed at 100%. This way, AIG's claim of a requirement to fulfill contractual obligations is completed and taxpayers get their money back."

"AIG's shameful use of our money for resort vacations and obnoxious bailout bonuses requires swift and decisive action. I've never been afraid to call out greedy executives and hold them accountable in the light of day," said Congressman Massa.

Currently, the IRS withholds 25 percent from bonuses less than $1 million and 35 percent for bonuses more than $1 million dollars. The Bailout Bonus Tax Bracket Act of 2009, would tax bonuses over $100,000 disbursed to employees of companies receiving TARP funds. Because bonuses are treated as taxable income, this bill applies a separate "Bonus Bailout" rate to the TARP bonus. Bonuses would be taxed beginning with those disbursed this year.

For example, if an AIG employee's taxable income is $750,000 which includes the $150,000 AIG bonus received this year, that employee will pay the top marginal rate on $500,000 of personal income, and then the "Bonus Bailout" tax rate of 100% on the $150,000 TARP bonus.