House Approves 90% Tax on Bonuses After Bailouts

[unapatriciated]

http://www.nytimes.com/2009/03/20/business/20bailout.html?_r=2&hp

WASHINGTON — The House overwhelmingly approved on Thursday a near total tax on bonuses paid this year to employees of the American International Group and other firms that have accepted large amounts of federal bailout funds, rattling Wall Street as lawmakers rushed to respond to populist anger.

Despite questions about the legality of the retroactive 90 percent levy, Democrats and some Republicans said the tax on bonuses for traders, executives and bankers earning more than $250,000 was the quickest way to show angry Americans that Congress intended to recoup the extra dollars. Even backers of the measure noted it was an extraordinary step...

...In a statement, President Obama suggested he was supportive of the legislation, urging Congress to deliver a “final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated.”

In an appearance later on “The Tonight Show” on NBC, Mr. Obama was measured in his reaction, saying he understood that Congress was “responding, I think, to everybody’s anger” but that the best way to handle the situation was “to make sure you’ve closed the door before the horse gets out of the barn.”

The legislation would apply to bonuses paid to executives at companies holding at least $5 billion in bailout money and would essentially wipe out the phenomenal paydays that have been a tradition on Wall Street, at least until the firms reduce the amount they owe taxpayers to less than $5 billion...

[Junkdrawer]

1. So we can tax British Citizens (The AIG division was British) with an American Tax?

Or can we?

Say...you don't think Congress is just trying to make us feel they're taking care of the problem while actually doing nothing, do you?