A Few Thoughts on the 90% Bonus Tax.

Quote of the Day:

“We figure the local and state governments will take care of the other 10 percent.”

Rep. Charley Rangel's explanation for the 90% tax on tarp recipients bonus payments.


Counterquote of the Day:

"No man's life, liberty, or property are safe while the legislature is in session."
-- Mark Twain (1866)

Holy Smoke, America!! Did this really just happen to us? The American colonies rebel yell against England was "taxation without representation is tyranny!" Now we have a 90% tax rate with representation!! Perhaps it is time for another tax rebellion. The Senate is proposing a 70% tax on bonus payments, 35% paid by the company and the other 35% paid by the recipients. Even that is way too high. I think our representatives need to take a real deep breath, exhale slowly, then read the Constitution. Is this what they want for our future generations? I think not. This bill was composed mainly to make the most political hay over the public's distress over the bonus payments. It scares me how quickly this bill was passed. Congress, especially the house financial services committee, used delaying tactics and dogged resistance to prevent reform or overhaul of Fannie Mae/Freddie Mac for years. If they had acted half as fast on reform of these GSEs, (government sponsored enterprises, more on this later) the USA could have avoided the super recession we are experiencing and just had a nice regular recession that goes away in a year or two. If Congress can pass such outrageous tax bills for one reason, I am certain they will be able to think of more. Who knows, maybe all the opponents of war will tax the extra pay for overseas and dangerous duty military people receive.

Since the unions and activists have arranged busloads of people to hike to the AIG executives homes, would it not be fair to let the overtime pay of union workers be taxed the same as bonuses for people who do not get paid by the hour but by results? When it comes down to brass tacks, overtime is just another bonus. Since the UAW get paid when they are out of work, congress could really clean up here.

If the unions and activists cared more about all the taxpayers and not just the unionized ones, they would also organize a march in DC to all the congresspeople's DC homes to lodge complaints about their micromismanagement of this financial fiasco. Remember, all this started with Fannie Mae and Freddie Mac, not AIG.