Taxing Executive Bonuses Paid by Companies Receiving TARP Assistance

Floor Speech

TAXING EXECUTIVE BONUSES PAID BY COMPANIES RECEIVING TARP ASSISTANCE -- (House of Representatives - March 19, 2009)

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Mr. KILDEE. Mr. Speaker, I rise today in support of the H.R. 1586, a bill to impose an additional tax on bonuses received from certain TARP recipients. Financial firms such as AIG, who have accepted government assistance, need to recognize that the days of lavish travel, million dollar bonuses and golden parachutes are over.

When bridge loans were granted to General Motors and Chrysler, they were required to reduce wages and salaries. Auto workers are being asked to accept lower wages and stock contributions to their benefits account--which funds their healthcare--rather than cash.

What are executives at banks and financial institutions asked to do? Maybe spend fewer afternoons at the spa. Those firms should be subject to the same requirements imposed on GM and Chrysler and on their employees. My constituents have had enough of the double standard that rewards greedy executives and punishes working families.

After accepting $170 billion from the federal government, AIG is responsible to the American taxpayer.

Before I ran for elected office, I was a high school Latin teacher. And I can tell you that in Latin, ``bonus'' translates to ``good.'' A bonus is supposed to be a reward for something good--for excellent performance, not for running your company into the ground and sending the economy into a tailspin.

AIG's performance warrants a pink slip, not a paycheck.

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