New Wall Street Bonus Tax

[Vovchandr]

@Cossey

http://money.cnn.com/2009/03/19/news/economy/bonus_tax/index.htm

I found this quite interesting. Any company that was given over $5bil in government relief and still gives a bonus to it’s employees will have to pay a 90% tax on it. What I think is messed up is some of these people getting a bonus have no control over the say that they wanted the bailout. The bonuses some of these guys get are based on a contract, set in stone before the recession started. I think it should be taxed, but 90% is outrageous. So the guy who got $100 all year in bonuses will have to pay $90 back. But to play fair, I also think it’s messed up that the company is giving out bonuses in it’s current state.

It only affects the bonuses over $100K, so unless you forgot to put in “,000” the 100$ bonus won’t be affected.

Secondly it doesn’t matter if they had a contract, they would have gotten nothing if the company went out of business. They needed the money to jump start the AIG program back on track instead of giving the obligated bonuses.

Logically, bonuses should only be given in an event of success, which obviously didn’t happen. Paying people millions of dollars ontop of their salary after the company FAILED is moronic.

The government found a way to allow AIG to fulfill their contracted demands, yet still get their money back in a cunning way.