Rep: Tax AIG bonuses 100 percent

After the Feds tax them 100% they will still have to pay New York state income taxes. So the bonuses will actual turn out to be fines!-Lou

Rep: Tax AIG bonuses 100 percent

Rep. Carolyn Maloney has come up with a solution to the AIG bonus conundrum: Tax them into oblivion. The New York Democrat is proposing legislation that would tax the offending bonuses at 100 percent.

“This will allow AIG to continue to meet their ‘contractual obligation’ to pay these bonuses, but will ensure that the recipients are not allowed to keep this money,” Maloney explained in a Dear Colleague letter sent out today asking for co-sponsors.

Entitled the “AIG Taxpayer Protection Act,” the Maloney legislation would instruct Treasury and the Internal Revenue Service to develop guidelines that tax at 100 percent any bonus that is not directly related to a commission for any recipient of government bailout funds in cases where the federal government is the majority owner of the company.

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http://www.politico.com/news/stories/0309/20080.html