…they do! Nancy Pelosi has just announced that she will introduce legislation tomorrow to tax the AIG bonuses at 90%. This is being done, of course, “to strengthen our economy and create jobs.” The tax will be highly selective:
The bill would apply a separate income tax rate of 90 percent to bonuses received by individuals from companies which have received at least $5 billion from TARP. It would also apply to bonuses paid by Fannie Mae and Freddie Mac.
For this purpose, bonuses will be defined as any retention payment, incentive payment, or other bonus which is in addition to regular employee compensation payable on a periodic basis.
The special tax rate only would apply to individuals and families with overall income (including income other than bonuses) in excess of $250,000.
The good news there, I guess, is that the new tax covers Fannie Mae and Freddy Mac. That shows it’s bipartisan, right? Because it would apply to the more than $50 million in bonuses that Fannie Mae paid to Obama adviser Franklin Raines, right? Not quite:
The bill applies to payments received after December 31, 2008.
So much for Fannie and Freddy. I’m guessing the only company that fits the statute’s description is AIG. It’s pathetic, but it shows how desperate the Democrats are getting, no doubt in part because they’ve seen these numbers.