House Minority Leader John Boehner said the bonus tax bill was a “political circus” to keep the focus off the Obama administration’s mishandling of the AIG bonus boondoggle. That’s Rep. Mike Pence, an Indiana Republican, behind him.
After the top brass at AIG couldn’t be stopped from dishing out $165 million in bonuses to executives who didn’t exactly deserve gold-star treatment, Congress is attempting to recoup most of the money by slapping a 90 percent tax on such executive windfalls.
Meanwhile, Sen. Chris Dodd is disclaiming responsibility for enabling the AIG bonus debacle by changing the wording of a key section in the stimulus bill passed last month; Dodd says the Obama administration made him do it.
The U.S. House approved a bill Thursday that would impose a new tax on the $165 million paid to bailed-out insurance giant AIG as Senate Republicans stepped up criticism of the Obama administration’s handling of bonuses.
The House measure would apply a 90% tax on bonuses given to employees who earn more than $250,000 at any firm that received more than $5 billion in bailout money.