House bill will tax employees of TARP banks 90%!!!
Started by Special_K
almost 17 years ago
Posts: 638
Member since: Aug 2008
Discussion about
This just passed in the house. Over $250k will basically get taxed at 90%. And this gets applied in 2009, and therefore applies to most bonuses paid for 2008. This would be the death knell for NYC real estate. ------------------------------------------------------------------- House to vote on bill to tax TARP bonuses at 90% Legislation targets $165 million in bonuses for traders at troubled AIG... [more]
This just passed in the house. Over $250k will basically get taxed at 90%. And this gets applied in 2009, and therefore applies to most bonuses paid for 2008. This would be the death knell for NYC real estate.
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House to vote on bill to tax TARP bonuses at 90%
Legislation targets $165 million in bonuses for traders at troubled AIG
WASHINGTON (MarketWatch) -- House lawmakers are scheduled to vote Thursday on a massive tax bill tailored toward bonuses to highly paid individuals at companies receiving bank bailout funds -- the next chapter in the controversy surrounding $165 million in payouts going to executives and other workers at troubled American International Group Inc.
The lower chamber's set to vote on legislation that would subject employees of companies receiving more than $5 billion of government funds to a 90% tax on bonuses, according to the House Democratic cloak room.
The vote comes a day after AIG Chairman and CEO Edward Liddy told lawmakers on Capitol Hill that some bonus recipients at the insurer plan to return the money while others have already done so.
AIG has received $173 billion in U.S. bailout funds. The AIG bonuses went out to traders in credit default swap insurance products and other derivatives contracts.
During hours of contentious testimony, Liddy told a House committee that he asked executives at AIG receiving bonuses greater than $100,000, to return half of the money they received. See full story.
However, the legislation targets more than just AIG bonuses: It would limit bonuses given to all executives at roughly a dozen financial institutions including Bank of America Corp and Citigroup Inc. receiving money from the $700 billion bank-bailout fund, known as the Troubled Asset Relief Program, enacted in October.
The legislation was introduced by House Ways and Means Chairman Charles Rangel, D-N.Y.
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Response by ccdevi
almost 17 years ago
Posts: 861
Member since: Apr 2007
news like this is what depresses me, not the economic data. actions like this shatter the illusion that the people in charge will find a way to fix things. This could be the single dumbest piece of legislation ever. And we let a man like Rangel have this kind of influence. maybe there really isn't any hope for this country.
is the gov't now going to push for big bonuses?
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Response by Special_K
almost 17 years ago
Posts: 638
Member since: Aug 2008
Supposedly, the only reason they kept the federal tax at 90% is to allow for state and local taxation as well.
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Response by jrw293
almost 17 years ago
Posts: 91
Member since: Jan 2007
the gov't is now the in-house mafia.speak of "slippery slope"'now mr barney and mr rangel wield godfather power.by the way,i never heard this level of rage by democrats [in general],directed against ben laden or the taliban.
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Response by Special_K
almost 17 years ago
Posts: 638
Member since: Aug 2008
Actually, I was incorrect. It had not passed yet, but was proposed. Now it has passed.
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Response by alanhart
almost 17 years ago
Posts: 12397
Member since: Feb 2007
Recipients should protest by refusing bonuses altogether.
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Response by jsmith9005
almost 17 years ago
Posts: 360
Member since: Apr 2007
Why aren't the people of Mass. screaming for Barney's head?
"''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''" - Rep. Barney Frank, Sept 2003
Same reason they aren't screaming for Dodd's head (who was the guy who enabled the AIG bonuses, then became the biggest "critic").... or why they keep reelecting the state assembly.
voters are suckers, and they generally buy the party line hook, line, and sinker.
news like this is what depresses me, not the economic data. actions like this shatter the illusion that the people in charge will find a way to fix things. This could be the single dumbest piece of legislation ever. And we let a man like Rangel have this kind of influence. maybe there really isn't any hope for this country.
is the gov't now going to push for big bonuses?
Supposedly, the only reason they kept the federal tax at 90% is to allow for state and local taxation as well.
the gov't is now the in-house mafia.speak of "slippery slope"'now mr barney and mr rangel wield godfather power.by the way,i never heard this level of rage by democrats [in general],directed against ben laden or the taliban.
Actually, I was incorrect. It had not passed yet, but was proposed. Now it has passed.
Recipients should protest by refusing bonuses altogether.
Why aren't the people of Mass. screaming for Barney's head?
"''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''" - Rep. Barney Frank, Sept 2003
http://www.nytimes.com/2003/09/11/business/new-agency-proposed-to-oversee-freddie-mac-and-fannie-mae.html?sec=&spon=&pagewanted=all
Same reason they aren't screaming for Dodd's head (who was the guy who enabled the AIG bonuses, then became the biggest "critic").... or why they keep reelecting the state assembly.
voters are suckers, and they generally buy the party line hook, line, and sinker.