Latest AIG Bonuses

[Anonymous]

jsteele wrote:

Anonymous wrote:Very dicey road we are on. If the bonuses are part of contractual obligations and the employee did not do anything to abridge his/her contract--it is a scarey signal to just nullify the contract because the public is mad.

Actually, it's pretty likely the employees did invalidate their contracts by engaging in illegal activities. The issue really belongs with the DOJ rather then the Treasury.

This is a bit misleading. Most of the bonus recipients received between $1000 and $10000 bonuses. This is typical of Wall Street, where between 20% and 50% of the average worker's income (mail room to mid level manager) is the contractual bonus.

A few perhaps undeserving executives did get mega bucks, but to say all bonus recipients were likely to be criminals mis-states the case.

And to think that the White House is responsible for allowing the bonuses to be paid in the first place (they negotiated the no excessive bonus provision out of the stimulus bill) and then to feign outrage is truly (insert appropriate adjective here).

[Anonymous]

Interesting POV from Larry Kudlow. He is a Republican, but a fiscal conservative, not a social conservative. His observations about the Govt's ability to run a business are spot on IMO.

http://www.realclearpolitics.com/articles/2009/03/the_aig_outrage.html

And Chris Dodd is now singing "The White House made me do it!" to anyone who will listen

[Anonymous]

While I'm not thrilled about the bonuses, I thought the article in the Style section of the Post about the AIG unit that is getting these bonuses made me a little more sympathetic. It says that most of the folks responsible for the bad trades have left and that the bonuses go to everyone - including secretaries, janitors, etc.
Also, it seems that while the Federal Reserve knew about the bonuses, the Obama Administration did not until just last week.

[Anonymous]

It's easy to cast judgment when you don't really know the whole story - I thought the Style section article was very balanced.

Frankly, I think it's pretty frightening that the government can come in and pick specific groups of people to tax more than everyone else. What if they decided they didn't like the company that you work for, so 90% of your income was going to be taxed -- even though you as an individual did nothing wrong? You can villify all of these companies, but most people who work at them are good, hard-working people that are not making millions.

The house bill applies to any one who's entire household made more than $250,000 -- it's not limited to those making millions. IMO this unfairly penalizes dual earner couples - esp. women. You could have two people making the exact same amount - e.g., $150,000 with a $75,000 bonus -- the guy who's wife doesn't work won't get taxed b/c he makes less than $250K but the woman who's husband works doesn't get to keep her bonus? I think this will lead to a mass exodus from all of the affected companies and compound our economic problems.

[Anonymous]

Anonymous wrote:While I'm not thrilled about the bonuses, I thought the article in the Style section of the Post about the AIG unit that is getting these bonuses made me a little more sympathetic. It says that most of the folks responsible for the bad trades have left and that the bonuses go to everyone - including secretaries, janitors, etc.
Also, it seems that while the Federal Reserve knew about the bonuses, the Obama Administration did not until just last week.

But I doubt the janitors and secretaries get north of $100K bonuses. Isn't that the threshold for the taxation?

[Anonymous]

Anonymous wrote:
Frankly, I think it's pretty frightening that the government can come in and pick specific groups of people to tax more than everyone else. What if they decided they didn't like the company that you work for, so 90% of your income was going to be taxed -- even though you as an individual did nothing wrong? You can villify all of these companies, but most people who work at them are good, hard-working people that are not making millions.

They can't. The House of Representatives voted yesterday to violate the very Constitution they are sworn to uphold and defend:

US Constitution Article 1 Section 9 Limits on Legislative Power
"No bill of attainder or ex post facto Law shall be passed."

US Constitution Article 1 Section 10 Limits on States
"No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility."

http://www.techlawjournal.com/glossary/legal/attainder.htm

"These clauses of the Constitution are not of the broad, general nature of the Due Process Clause, but refer to rather precise legal terms which had a meaning under English law at the time the Constitution was adopted. A bill of attainder was a legislative act that singled out one or more persons and imposed punishment on them, without benefit of trial. Such actions were regarded as odious by the framers of the Constitution because it was the traditional role of a court, judging an individual case, to impose punishment." William H. Rehnquist, The Supreme Court, page 166.

[Anonymous]

I do not think the tax will be upheld and of course it shouldn't--you don't claw back and penalize people--interesting to see the outrage when people do not have the full story.

[Anonymous]

I find it very interesting that members of Congress would be so enamoured with the idea of targeting an unpopular group of Americans and using that perception as cover to change the tax laws as a means of punishment more than anything else. I can think of ANOTHER group of Americans who are considered inept, corrupt, (over)paid by taxpayers ... I could go on. So where is the claw back clause that would tax Congressional pay and benefits???

[Anonymous]

Agree

[Anonymous]

People we need to wake up before it is too late!!!!! www.zeitgeistmovie.com
Things that make you go WTF!!!!!!!!!!

[Anonymous]

Welcome to America! This is the true picture finally coming out!
Too many greedy people in America, this place is meant only for THE RICH AND THIEVES!

[Anonymous]

Yes welcome to the new American where people who lack talent and drive get mad at people who have talent and drive. Sorry no pity ..came from family who lacked means and made it and would like to keep what I have earned.

[Anonymous]

They are laughing at you right now! It is not your money. I guess you will be one of the frist in line to get your chip! And then when you can't pay up there will turn your chip off! people as a whole are so hell bent on getting material things that you think will make you feel better. You are always going to want more and more. You will never be happy. What makes me hapy is going to the park with my son and watching him play. He is so happy with out a care in the world. tkae this test... Ask your child/children would they rather you play with them or you buy them something. Most children will say the would rather have the time with their parents. I hope we as Americans wake up and find the real meaning of life. And it is not money!

[Anonymous]

Anonymous wrote:They are laughing at you right now! It is not your money. I guess you will be one of the frist in line to get your chip! And then when you can't pay up there will turn your chip off! people as a whole are so hell bent on getting material things that you think will make you feel better. You are always going to want more and more. You will never be happy. What makes me hapy is going to the park with my son and watching him play. He is so happy with out a care in the world. tkae this test... Ask your child/children would they rather you play with them or you buy them something. Most children will say the would rather have the time with their parents. I hope we as Americans wake up and find the real meaning of life. And it is not money!

sorry about the typos

[Anonymous]

Anonymous wrote:Yes welcome to the new American where people who lack talent and drive get mad at people who have talent and drive. Sorry no pity ..came from family who lacked means and made it and would like to keep what I have earned.

Sounds like the path to proletarian power. Acorn will lead the charge!