Ruppersberger Co-Sponsors Legislation to Tax AIG Bonuses at 100%

Press Release

AIG Chief Executive To Testify Today on Capitol Hill

Congressman C.A. Dutch Ruppersberger (D-MD) co-sponsored legislation today that will tax the bonuses given to AIG executives at 100%. AIG awarded $160 million in bonuses just months after receiving $173 billion in taxpayer funds to save the company from the brink of collapse. AIG says it was contractually obligated to grant these bonuses. AIG Chief Executive Edward Liddy is expected to testify today on Capitol Hill.

"Using taxpayer funds to pay out multi-million dollar bonuses to AIG executives who drove the company into the ground is absolutely outrageous. It is immoral, fiscally irresponsible, and downright greedy. This legislation will ensure all of the money is returned to the taxpayers. This situation is also a massive distraction from our efforts to get our economy back on track," said Congressman C.A. Dutch Ruppersberger.

H.R. 1542, the "AIG Taxpayer Protection Act," directs the Department of the Treasury and the Internal Revenue Service (IRS) to develop guidelines that tax bonus compensation at 100% for executives whose company is a recipient of Troubled Assets Relief Program (TARP) funds where the United States government is majority owner. Congressman Ruppersberger co-sponsored this legislation together with Congressman Steve Cohen (D-TN), Congressman Eliot Engel (D-NY), Congressman Brian Higgins (D-NY), Congresswoman Mazie Hirono (D-HI), Congresswoman Carolyn B. Maloney (D-NY), Congressman Earl Pomeroy (D-ND), and Congressman Zack Space (D-OH).

Congressman Ruppersberger also co-sponsored H.R. 1543, the "Responsible Corporate Executive Compensation Act of 2009," which would make bonuses to employees of companies receiving TARP funds subject to a 95 percent tax. This legislation does not require that the United States government is a majority owner for taxing purposes in contrast to H.R. 1542. H.R. 1543 is sponsored by Congressman John Dingell (D-MI).

Source