Bill would tax bonus cash

Democratic leaders to introduce legislation to tax bonuses from companies getting $5 billion or more in government bailout funds.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Deirdre Walsh, CNN congressional producer

What progress is the Obama administration making toward ending the recession?
  • It's succeeding
  • The recovery is too slow
  • It's not helping at all

WASHINGTON (CNN) -- House Democratic leaders said they would introduce legislation Wednesday night to try to recoup bonuses paid to Wall Street executives with taxpayer money.

The measure would tax individuals on any bonuses they receive from companies getting $5 billion or more in TARP money. Bonuses for people with incomes over $250,000 would be taxed at a 90% rate. It affects bonuses received after Jan. 1, and applies not only to employees but former employees as well.

"We can't have any concept of we're getting even, but we must have a concept that we're trying to show that Congress ... can not tolerate that," said Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee.

Referring to the AIG executives who received bonuses, Rangel said, "I don't think these are the type of people to [whom you can] make an appeal to equity and justice. I don't think they really know the difference. I don't really think they've had life experience to allow them to believe the pain that they've caused for millions of Americans."

House Speaker Nancy Pelosi, D-Calif., said the bill would come up for a vote on Thursday.

"We must ... protect the American taxpayer from executives who would use their companies' second chances as opportunities for private gain," Pelosi said. "Because they could not use sound judgment in the use of taxpayer funds, these AIG executives will pay the Treasury in the form of this tax."

A similar proposal in the Senate would attempt to recoup bonuses by taxing both individuals and companies, but Rangel said House leaders decided against penalizing companies because they could simply ask for more taxpayer money. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Some Converse copycats cost big bucks A few bargain brands got swept up in Chuck Taylor's net, but others cost a pretty penny. More
Urban infrastructure gets a second life Railroad beds become parks, power plants become aquariums and slaughterhouses are now art centers as an industrial past turns people-centric. More
Boomtown moms From working mothers raising their kids in RVs to stay-at-home moms who spend their days organizing events for the Oil Wives club, meet the moms of North Dakota's oil boom. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.