House to vote on the tax of 90 percent for AIG Bonuses

 

Friday, Mar 20,2009, 12:02:21 PM   Click:

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WASHINGTON_The House is scheduled to vote today on a bill that would levy a tax of 90 percent on premiums paid to employees with family incomes over $ 250,000 for companies that have received at least $ 5 billion in Fund bailout.

"We realized that local and state governments to take care of the other 10 percent," said Rep. Charles Rangel. New York, the chairman of the tax writing Ways and Means Committee.

Rangel said the bill would apply to mortgage giants Fannie Mae and Freddie Mac, among others, to the exclusion of community banks and other small businesses that have received less money for the rescue.

House Democratic leaders unveiled the bill at the head of Embattled American International Group Inc, which received $ 182 billion in rescue funds, appeared about 165 million in bonuses paid last week, about 400 employees in its financial products unit.

Edward Liddy, which was introduced last year by the Government to launch the AIG, said Wednesday at the House subcommittee that the company was contractually obliged to pay the premiums, some beneficiaries have started to return all or some of them.

Liddy said that on Tuesday he had "asked those who received retention payments of over $ 100,000 or more to return, at least half of these payments." Some have already advanced and gave 100 percent, "he added.

Lawmakers rushed to the microphones after the word bonus has been forwarded by the Government during the weekend. Bills were quickly introduced in the House and Senate to impose heavy taxes on the new one.


The two members of the Finance Committee of the Senate announced Tuesday a bill that would impose an excise tax of 35 percent on businesses to pay premiums of 35 per cent and an excise tax on employees receive. The fees for all companies to receive life-saving government money, but they are clearly oriented AIG.

President Barack Obama, who took office less than two months, said Wednesday that his administration is not responsible for a lack of federal oversight of AIG that preceded the demise of the company.

But Obama added: "The responsibility stops with me."

Obama said his administration has been consulting with Congress on establishing a new authority of the resolution "to enter the giant institutions like AIG _ including all of their toxic assets _ including the collapse of normal can cause bankruptcy claims in the financial markets.

Republicans have criticized the Treasury secretary, Timothy Geithner, questioning how he know about the premiums in advance and the efforts by the administration to stop them. And they complained of being re-gain access to the discussions earlier this year when Democrats agreed to waive a provision of economic stimulation that the bill repealed the payments.

"The fact is that the bill, the President signed, which protects the AIG and other bonuses, was written behind closed doors by Democratic leaders of House and Senate. There is no transparency, "said Iowa Senator Charles Grassley, senior Republican on the Senate Finance Committee.



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