Democrats should not use taxes as a weapon against AIG bonuses
I 100% understand why there is so much outrage towards AIG. If “earmarks” -which are a minuscule part of the overall budget- get people riled up ,then why not the AIG bonuses which make up a small portion of the bailout.
On Wednesday, reports surfaced that Democrats in the house are seeking to get exec bonus payouts by through taxes. Though I think AIG execs should give the bonuses back, Democrats taxation plans aren’t appropriate.
On Thursday their plans became more clear. Yahoo! and Politico report that House Democrats are looking to propose legislation that will place a 90% tax on bonuses paid by companies that received over $5 billion in TARP money.
Do everything legally possible to get the money back, no doubt. But taxes should never be used as a disincentive. Democrats should calm down, think logically, and not feed into the mob mentality that is starting to gather.
As President Obama did when Sen. John McCain left the campaign trail to solve the financial crisis, these times call for calculated actions, not spiteful reactions. Democrats, from Chris Dodd to Barney Franks, are running around Capitol Hill like their hair is on fire instead of stepping back and taking a broader look what’s really going on here.
Legislation to put an end to abuse of TARP funds is a good thing and would be well received by the American people. But I’m one who would want taxes to stay out of the equation. We should never use taxes as a deterrent….for anything.
House Ways and Means Chairman Charles B. Rangel was asked why not tax the bonuses 100%. He said he “figured that the local and state officials would take care of the other 10 percent.” The irony, from the party who can barely get cabinet nominees confirmed due to tax issues.