House Democrats' Vote Hides Truth Behind AIG Bonuses

House Democrats' Vote Hides Truth Behind AIG Bonuses

Today, the U.S. House of Representatives voted to pass legislation that would tax AIG employees at 90% to retract the contractual bonuses that were paid. Congressman Mike Conaway (R-TX) made this statement following today's vote:

"Three wrongs don't make a right. These bonuses would not have been paid had the stimulus bill not included Senator Dodd's amendment, which was slipped in behind closed doors, to allow TARP money to be paid out in bonuses. Now the Democrat's are trying to cover their tracks by enacting a vengeful 90% tax on AIG employees. The American people deserve, and should demand, to get 100% of their hard-earned tax dollars back, but we have to find a legal way to achieve this goal. Article I, Section 9 of the US Constitution specifically blocks Congress from enacting a law that effect only one person or group. Therefore, this bill is a direct violation of the U.S. Constitution. The third wrong is the use of the Internal Revenue code as a weapon and in retaliation sets a precedent that I cannot support.

"We have loaned AIG $164 Billion and we expect to be repaid with interest. I am offended, like many of the constituents of District 11, that the money was loaned without the proper restrictions on the use of the proceeds. I find it incredulous that the contractual bonus plan did not provide for overall restrictions on amounts paid out when the company is losing money.

"In contrast to this political theater, we should take appropriate steps such as forcing bankruptcy or ‘court ordered receivership' that are legal and that do not violate the clear terms of the Constitution and that still meet our objectives."

Source