Thursday, March 19, 2009

Congress 90% Tax on Bonuses to AIG Unconstitutional

http://finance.yahoo.com/news/House-passes-bill-taxing-AIG-apf-14693850.html


This is the most outrageous form of stupidity that Congress has done. Today, the House of Representatives voted decisively to impose a 90 percent tax on employee bonuses paid by AIG and other bailed-out companies.

Because it was the fault of Senator Chris Dodd for slipping in an amendment that protects bonuses to these institutions, Congress decided to punish the innocent. I really don’t care if these insurance companies paid $165 millions bonuses to employees. I am more concern of the principle that will set precedence if Obama signs this goofy bill into law. Because the Democrats Majority on Capitol Hill, who owns 80% of AIG, wanting to deflect their stupidity, they find using upper management as their escape goat. You will never hear how Congress allowed AIG funneled a portion of the $185 billion of federal bailout money to foreign countries.

Do you understand what it means if Congress makes this into law? It will allow Congress to go after any group of people and tax them unfairly. Congress could go after sports personalities, lotto winners, or growing small business. This is unconstitutional to target a specific group and levy them with special tax. This is not the role of Congress. There are other ways to get AIG to cough up their bonuses. This particular bill is not the way.