Rep. Carolyn Maloney (D-NY), the chairwoman of the Joint Economic Committee, has a novel solution to the AIG bonuses flap: levy a 100% tax on the company’s senior executives for every bonus payment that’s not related to a commission.
Maloney is introducing legislation that would institute the tax, and apply it to any recipient of bailout money where the U.S. government has become the majority shareholder. After the jump, you can read her letter to fellow lawmakers urging them to sign on to her effort.
Dear Colleague:
Like many of you, I was outraged to learn over the weekend that AIG is paying out another $165 million in bonus compensation. For a company that has required $170 billion in U.S. taxpayer assistance and is 80% owned by the United States Government, this is clearly unacceptable. That is why I will be introducing legislation that will instruct the Secretary of the Treasury and the Internal Revenue Service to develop guidelines that tax at 100% any bonus compensation that is not directly related to a commission for any recipient of TARP funds where the United States government is the majority owner of the company. 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.
If you would like to cosponsor this legislation or if you have any questions, please do not hesitate to contact me or Edward Mills in my office at (202) 225-7944 or edward.mills@mail.house.gov.
Sincerely,
CAROLYN B. MALONEY
Member of Congress
