Just got this not too long ago and don't see it on the diary list, so I thought I should throw it up there. Probably a few more similar bills coming, too.
One of my states congressman, Earl Blumenauer, announced a 100% tax on bonuses at companies receiving bailout money.
Finally!
Full release over the fold.
The press release:
RELEASE: Rep. Blumenauer to Introduce Bill to Tax Executive Bonuses at 100%
Tuesday, 17 March 2009
Ways and Means Committee Member says with Americans facing historic economic hardships, TARP assisted firms’ executives should give money back
Washington, DC – Today, Rep. Earl Blumenauer (D-Ore.), a member of the House Ways and Means Committee announced his bill that will impose a 100% tax surcharge on bonuses received by highly-ranked employees at taxpayer subsidized financial institutions.
Specifically, Blumenauer’s states that any highly ranked employee of a subsidized financial institution who receives a bonus, including any amount of deferred compensation or other compensation, after the institution received funds authorized under the TARP program shall face a tax of 100% on the amount of that bonus effective as of December 1, 2008.
"Across the nation unemployment is at an all time high, and in my home state of Oregon it’s even worse. Funds provided under the TARP Program were intended to provide stability to the financial system to prevent further pitfall, not to pad the pockets of corporate executives," said Rep. Blumenauer. "I strongly support President Obama’s efforts to pursue every single legal avenue to block these bonuses and make the American taxpayers whole. It’s time for Congress to take action in holding these executives accountable and to increase oversight of these programs. As a member the House committee with jurisdiction over tax, I look forward to working with my colleagues on the Ways and Means committee and in Congress to claw-back these ill-gotten bonuses; and that’s why I am filing this legislation to impose stiff taxes on these types of compensation arrangements."
The Summary provides a few more details:
III. Tax on Taxpayer-subsidized Bonuses
- Definitions –
a. HIGHLY RANKED EMPLOYEE- The term ‘highly ranked employee’ shall mean any officer, director, or similar managerially-ranked employee, or any employee earning in excess of $400,000 in base salary.
b. SUBSIDIZED FINANCIAL INSTITUTION- The term ` subsidized financial institution' means any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company, established and regulated under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, that receives financial assistance from the Troubled Assets Relief Program created under Public Law 110-343.
- Imposition of Tax—
Any highly ranked employee of a subsidized financial institution who receives a bonus, including any amount of deferred compensation or other compensation, after the institution received funds authorized under the TARP program shall face a tax of 100% on the amount of that bonus.
- Effective Date –
The tax authorized under paragraph 2 shall be effective as of December 1, 2008.
I can't wait to hear the screams of unfair taxation from those "poor" Wall Streeters!