The U.S. Congress is a big bunch of babies, as is obvious from the current rage over AIG’s recent bonus payouts.
Let’s go through the history here:
- A year ago, AIG commits itself contractually to paying enormous bonuses to a bunch of douchebags who are ruining the company. This is just one of a slew of very poor business decisions made by the company.
- A few months ago, after AIG’s gross incompetence comes to light, the US Government decides that AIG is “too big to fail” and gives $170 billion in taxpayer money to AIG.
- A couple of weeks ago, the impending payout of $165 million in executive bonuses–the ones that AIG committed to a year ago–becomes public knowledge. Nobody pays any attention until the AP and Reuters pump the story, at which point Congress suddenly becomes very angry and the President starts using the word “shameful” again, which is apparently all he is capable of doing about anything.
- Today, the House of Representatives decides that they are going to get their money back by levying a 90% personal income tax on the recipients of AIG’s bonus payouts.
Am I the only one that thinks this is totally insane and inappropriate? Congress shouldn’t just get to do whatever the hell they think is right! AIG drew up crappy contracts a year ago, our government failed to perform their due diligence when they bought most of the company, and now the sleazebags in Congress are trying to make themselves look less idiotic by spewing rage at the current CEO of AIG, who has nothing whatsoever to do with the bonus payouts. He didn’t even work for the company at the time.
The Democrats in Congress can go get bent. This is a stupid battle being fought by stupid people and I’m sick of reading about it in the news.
2 Comments
I absolutely agree. Congress screwed up by not doing adequate due diligence when they passed the TARP. OK, I can almost give them a break – the stock market was tanking every day and there was enormous pressure to do something. I think oversight of how the bailout money is spent is critical, but this combination of Monday morning quarterbacking and a retroactive law is scary. And AIG paying bonuses to the same dummies that turned a pretty well run insurance company into a whatever sort of hybrid “financial services” thing that morphed out the ooze of a lax regulatory environment is stupid. But as the current whipping boy running the treasury said, we’re a nation of laws. I think the Supremes may weigh in on this one. We got taken. Let’s learn from this and not let it happen again.
It would be gratifying to see the Supreme Court declare that a 90% tax is inherently punitive and that the tax bill constitutes a bill of attainder, but most legal scholars don’t seem to think that will hold up. Congress was granted the constitutional power to tax, after all. So I’m not holding out much hope on that one.
I’m just ready for Barney Frank to stop running his mouth at this point.
Post a Comment