According to Yahoo, the House of Representatives has passed a bill allowing a tax rate of 90 per cent on the retention bonuses paid to AIG employees. The logic behind the 90 per cent rate is that the states and local municipalities will take the other 10 per cent, leaving the recipients with nothing. This is beyond obscene. The fact that the House of Reprentatives would waste its time on a tax law that specifically targets a group of individuals would make the founding fathers turn over in their graves. I don't care how much public sentiment they have stirred up, it is simply the wrong thing to do.
John Hinderaker states at Power Line that the law is unconstitutional and will probably never actually be enforced. He makes the point that:
"Pelosi's tax will never become law; it will die quietly at some point. Its only purpose is as a cheap PR stunt to deflect public anger--mostly misplaced, in my view, to the extent that it focuses on the AIG bonuses rather than the multiple, trillion dollar disasters the Democrats have perpetrated or are planning."
In a previous Power Line post, John explains why he feels that the people who received the bonuses should be allowed to keep them. It's a long entry, but it's worth reading. This whole outrage thing is manufactured and harmful to our country.
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