The Democrats in the congress are making a big mistakes by taxing 90% of the bonuses of the AIG employees. Their action is silly at best and dangerous at worst. It is similar to the Republicans actions during the Terry Schiavo affair. That was the begining of the end of them. Unchecked, the liberal congressman will ruin the party's recent gains.
The hurried-up actions by the Congress to impose 90% income tax on AIG bonus recipients may come back and bite the Democrats if they don’t stop overreacting for short term political benefit. It reminds me of the Terry Schiavo legislation passed by the Republicans at an emergency session. The Republicans did something totally illogical to please their base. Liberal Democrats are playing with the tax rate just to vent popular outrage at the Wall Street, which has found a scapegoat in the AIG bonuses.
Our economic problems have been caused by greedy Wall Street, unethical financial institution, irresponsible lenders and borrowers, and the regulators and lawmakers who are incompetent at best. So there is a plenty of blame to go around. Excessive bonuses are just one of the symptoms of the economic disaster. Taking the bonuses back may feel good now, but it just distracts us from solving the real problems. It is like depressed alcoholic drinks more to feel better.
Forcing some to return the bonuses wouldn’t stop investors and bankers from being greedy and crooks. It wouldn’t help the banks lend or sell toxic assets. The congress should not implement bailout or manage businesses. If you think the bankers and smarty-pant derivative writers ruined the economy, wait until politicians get their hands on our money. Sooner we rein on them, better off we would be. Democrats’ Terry Schiavo moment is here; if they don’t back off, Obama will be the biggest political victim of it. Let us see if he will act smart and tough, and stop Congressmen and Senators from ruining the Democratic gains, and our financial future.