The 90% Tax on AIG bonuses… Tragicomedy.

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Today the House passed a 90% tax on bonuses that would apply to those that take federal bailout money like AIG (and others) which apparently would also be retroactive. Passed House by 328 to 93 (two-thirds) vote.

Well of course this makes people feel better and maybe that’s what they were going for. Makes the reps in Washington look like they’re doing something effective. If you think about this a bit however I seriously doubt it can actually be done. Symbolically I suppose it’s a great public pleaser (addresses the outrage) but as a “law, bill or even a rule” it won’t work in this form.

Even though it's approved by the House, it likely won’t be approved by the senate, and even if it was approved by the senate it’s likely unconstitutional and won’t ever be put into effect.


It targets one group’s (even though they took money from the government) taxes to 90% (rather unprecedented) which though perhaps desirable or fair in this case, I don’t see how it could be enacted. If the government decided that in order to raise funds for the government they were going to create new 90% taxes or raise existing taxes like alcohol/tobacco 90% many people would be up in arms. Or how about if the government decided to repeal the tax exempt status of churches to raise money and be fair to all taxpayers… well, I expect all hell would break loose (pardon the expression) wouldn’t it? Whether it’s a good idea or not doesn’t matter because it wouldn’t happen. As far as I can see this 90% tax won’t hold up even if it gets through the Senate.


The Keystone Kops in charge of a national disaster. It doesn’t seem like anyone knows what they’re doing. Timmy G wanna weigh in on this?

The big question is whether Geitner should resign, or Obama should fire him, or maybe he should come up with some comprehensive plans that can be explained thoroughly to the public. The latter being the best idea.

Tragicomic.
Funny in a decidedly unfunny rather tragic way.

Off to watch Obama on Leno which I have mixed feelings about. I’ll decide after I see how it goes and what is said.

Later,

Laura
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