Kucinich seeks 60 percent excise tax on TARP executive bonuses

[Algorem]

Source: plain dealer

By Sabrina Eaton, The Plain Dealer
December 10, 2009, 12:20PM

...On Wednesday, he proposed an amendment to a pending financial industry reform bill that would do that and impose an additional 70 percent tax on TARP recipients' corporate profits.

"Without the extraordinary actions of the federal government, many of these institutions would have collapsed a long time ago," Kucinich told the House Rules Committee, arguing that his amendment would hold "to account those institutions and individuals that made the decisions that led to the crisis."

The Rules Committee did not permit his amendment to be considered on the House of Representatives floor because it was opposed (by) the Financial Services Commitee, a Rules spokesman said...

Kucinich says he plans to introduce a freestanding bill next year to accomplish those goals, modeled on on British efforts to tax banking bonuses. He estimated his suggested excise tax on bonuses would generate about $14 billion for the U.S. Treasury.





Read more: http://www.cleveland.com/open/index.ssf/2009/12/kucinich_seeks_60_percent_exci.html

---

Britain to Levy a One-Time Tax on Banker Bonuses

http://www.nytimes.com/2009/12/10/business/global/10pound.html?_r=2&ref=business

Published: December 9, 2009

As bankers revel over the return of big Wall Street paydays, the unthinkable is happening in Britain, where the government is making the most direct attack on bank bonuses anywhere in the world.

To the howls of London bankers, the British government said Wednesday that it would return money from banks to taxpayers by placing a 50 percent tax on banker bonuses of more than £25,000, or about $40,700.

The one-time windfall tax would affect not only British banks but also the London subsidiaries of Wall Street giants, whose rapid recovery from the financial crisis and plans to award bonuses that could rival those of the bubble years have stunned many Americans.

The British plan goes beyond the oversight of the financial pay czar in the United States because it touches all banks, whether they took government funds or not. While there has been no push to adopt a similar tax here, new record bonuses expected to be paid to Wall Street bankers in January may prompt a renewed outcry over lavish payouts, especially ones made by American banks that received government support...

[ShortnFiery]

1. I KNOW Dennis Kucinich is in "a safe" district for a liberal ... but still, BLESS HIM! eom

[No Elephants]

6. He's not the only liberal in the district, though, so he is a risk taker.

[TwentyFive]

31. I hope his district is safe. More than a district - he is America's Congressman.

Dennis Kucinich is a national treasure. Nobody owns him, except the people.

[wordpix]

53. very rare, that

[Goldstein1984]

61. All too rare.

Add Bernie Sanders to that same list.

In spite of all my posts complaining about government, there are a few good people in there. But too few.

[OhioChick]

2. Rec. n/t

[stray cat]

3. Britain did 50% across the board whether they received funds or not

[harun]

4. As should we.

[AndyA]

5. Agreed.

Someone needs to be held responsible for this mess. I say it should be the people who contributed to it. It didn't come as a surprise to many of them, yet they reap the rewards of their bad behavior.

[Rosa Luxemburg]

52. Absolutely - I would make it 90%

Thses greedy individuals need to be taught a lesson

[No Elephants]

7. I don't know how Britain's Constitution reads. A tax like this one might violate ours, though.

[ShortnFiery]

10. Yes, since our right-wing Supreme Court has deemed "Corporations" as "People."

:crazy:

[No Elephants]

13. Yes as to the banks, no as to the executives.

edited bc my first version was wrong!

[ShortnFiery]

15. Progressive TAXATION is Constitutional. Gawd! I despise "legalese" ... can make

any damn thing LEGAL, but is it MORAL? :grr: :nuke:

[No Elephants]

17. ? I never said progressive taxation was unconstitutional.

In the original post, before I edited, I had said a tax applied evenly across the board was legal but a tax to punish one group might be unconstitutonal. Perhaps "applied even handedly" would have been a more precise term, but I never said a thing about progressive taxes being unconstitutional. (Kucinich seems to be proposing a flat tax on only one portion of the population, as a punishment.)

As for the alleged "legalese" take it up with James Madison and the rest of the Framers. The few words I used are right out of our country's Constitution. The first thing a law of Congress must be is Constitutional. If it's Constitutional, then we can debate its morality. I suspect the bank executives might have a different opinion than you and I do about how moral that law would be.

And simma down now. I did not write the Constitution and I can't help it if this bill might be unconstitutional.

[totodeinhere]

34. That's why we need to be able to fill some more SCOTUS vacancies. n/t

[newtothegame]

8. I don't see the economy recovering if businesses aren't allowed to grow.

i.e. taking their profits for even MORE government revenue.

[No Elephants]

11. Self delete. Post was erroneous..

[MNDemNY]

14. This proposal does not take "company profits'

It takes Executive windfall bonuses. (they are not part of a company's profits, they are an expense.)

[No Elephants]

18. I hope my original post did not mislead you. I had read the OP too quickly.

[MNDemNY]

20. no prob.

:-)

[newtothegame]

30. "impose an additional 70 percent tax on TARP recipients 'CORPORATE PROFITS"

Sorry kiddo, directly from the post. That's on top of the 60 percent excise tax on TARP executive bonuses, and that's the congressman's language there, not mine. So yes, the proposal takes company profits and prevents growth, that's exactly what it does. Unless you're saying the Congressman Kucinich is lying.

[MNDemNY]

35. Not keen on that, but taxing the bnuses, yes.

But, why should there be any "profits" for any Corp. that still owes TARP money. ANY "profits" should first go to pay it back.

[Egalitariat]

43. Your post shows quite a bit of ignorance. Repayments are not expenses

that lower "profits". Interest is an expense, but the principal repayment is not.

[nashville_brook]

40. "sorry kiddo?" really? that's how you're going to make your point?

good luck with that.

[diane in sf]

42. grow? you mean like cancer??? these are "banks too big to fail" thus toxic to the whole system

[Stevepol]

49. Growth? What's growing? More stock gambling? I would agree w/ the post if

we were talking about a company that had anything to do w/ growth i.e. more jobs, more small business, etc. These Wall Street banks and financial institutions are just juggling accounting sheets and playing games w/ money. The way it looks to me, it has almost nothing to do w/ real growth.

[katkat]

23. holds kleenex to eyes, sniffles

"businesses aren't allowed to grow"?? To borrow from Douglas Adams, what is this, some strange new definition of the word grow, one I haven't previously encountered? How about for grow substitute ripoff.

[liberation]

51. If businesses are not allowed to "grow" by "stealing" from us... the terrorists win!

Why do you hate America and the American way?

I love the whole "we need to give rich people tons of money or else they won't have any incentive to work and the economy will collapse BUT we can't give any money to the poor or else they won't want to better themselves and work harder, and thus the economy will collapse"

Me thinks this whole thing is a f*cking sham... we have been ripped off for the better part of at least 3 decades (at the very very least)...

[Name removed]

24. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Lorien]

37. Boy, you really ARE "new to the game"

This isn't "growing a business" this is profiteering at the public's expense.

[bread_and_roses]

46. Oh, right - those "profits" have done us SO much good over the past thirty years!

Where have you been since Reagan? For that matter, since 1967 - since which real wages have not risen. And even if they had how many more McMansions and plastic gee-gaws from China could we have bought? Not to mention should we have bought, at the utter devastation our "growth at all costs" model of the economy promotes?

Even if one does not hold, as I do, that all profit is theft or that capitalism = death, any rational observer, seems to me, would be hard put to make a case that all those "profits" have profited we the people much, if any, at all.

And that is regardless of whether the tax under discussion would affect profits or only compensation.

[liberation]

50. I thought the proposal was to tax executive bonuses (income) nothing to do with corporate profits

[KansDem]

66. Hey, pal...where've you been for the last 30 years.`

This is the same horseshit we heard from the Reaganites. Well, we tried Reaganomics. We gave taxcuts so the "businesses would be allowed to grow." Guess what? They took their swag and squirreled it away in offshore bank accounts so they wouldn't have to pay taxes!

Sorry, "Leona Helmsley Economics" is dead! we tried it your way...it didn't work.

[Ignis]

72. "if businesses aren't allowed to grow"

Well, we could always try making stuff that people want and selling it for a reasonable price to take advantage of an increased market share.

Nah, it'd never work.

[Vinnie From Indy]

9. The sell-outs and corrupt Congressmen must hate Kucinich

God bless him for at least getting on record that someone is calling bullshit on the theft of the century. Historians will someday mention Dennis's stalwart, vigorous voice of truth.

[earthboundmisfit]

12. YES!

When I heard about the British plan I thought, "Why the hell are we too afraid to do this here?" What are we afraid they'll do if we tax them like this, anyway??? Quit?

[dem2go]

16. We need more Kucinich's

There are not many with his backbone-thanks for Dennis.

[No Elephants]

19. I doubt he expects this bill to go anywhere, but it will make a point.

[Kingofalldems]

21. Great idea! Freepers hate Kucinich

[frylock]

25. freepers?!

people on DU hate Kucinich!

[spiritual_gunfighter]

41. True that

It seems like Kucinich is worse than Cheney on here sometimes. It is revolting.

[Zorra]

75. Yeah, but they are the same people that wanted Lieberman to beat Ned Lamont

in the Senate race in Connecticut. You know - the Blue Cross Dog brigade.

So, *snicker*...who cares what they think?

[mbperrin]

22. Great idea. Let's do it.

Please?

[chill_wind]

26. The Constitutionality of Taxing Bonuses (Jack Balkin)

I remember this getting kicked around last March.

http://balkin.blogspot.com/2009/03/constitutionality-of-taxing-bonuses.html

http://journals.democraticunderground.com/chill_wind/139

[chill_wind]

29. Links to earlier House & Senate Bills from last Spring

Govtrack links (Balkin's second link (Thomas link) is broken)

Charlie Rangel's House Bill (51 co-sponsors)

http://www.govtrack.us/congress/bill.xpd?bill=h111-1586

Max Baucus's Senate Bill (14 co-sponsors)

http://www.govtrack.us/congress/bill.xpd?bill=s111-651

[AzDar]

27. Kooch!!

:loveya:

[seeinfweggos]

28. the same kucinich who voted with the GOP on pre-existing medical conditions?

[fascisthunter]

32. aint gonna work.... but nice try

we know more about that vote than you realize.

[fascisthunter]

33. Excellent (nt)

[RoccoR5955]

36. Thats our guy! Again working for WE THE PEOPLE...

...not them, the corporations!

Kucinich/Sanders 2012
TAKE BACK AMERICA!

[AllyCat]

38. Yes! If they can do this in the UK, they can do it here.

[Jefferson23]

39. Thank you DK, one day I hope an individual like you will be POTUS. n/t

[truedelphi]

47. Same here. n/t

[lastone]

44. i don't know about ya'll but...

this article form Rolling Stone's TAIBBI puts the pieces together pretty well.
I think I am through w/politics, politicians and the campaign bullshit they spew to get their sorry asses elected.
http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout/print

[DemReadingDU]

48. Thanks!

How did you get 0 postings? It seems you should have at least 1.
:shrug:

[lastone]

58. this is #1.

after reading that piece I couldn't keep my trap shut.

[54anickel]

63. You appear to be blessed with a broken post counter, Lastone.

A belated welcome to you, although it's hard to welcome a lurker until they actually post. :hi:

[SallyMander]

64. Weird, you are still at 0 posts!

Welcome to DU! :hi:

[Telly Savalas]

73. "I'm through with politics, but I'm posting on a political message board"

[midnight]

45. This should help the budget.

[winyanstaz]

54. You rock Dennis Kucinich :)

K & R and a big thank you...again!

[Bozita]

55. France and Germany are joining England in setting up a special Bankster Bonus tax.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4179649

[yurbud]

56. given the state of the world economy, it's hardly to believe that any of those trust fund babies

deserve a bonus. They deserve a prison cell and employment as someone's sex doll.

[pleah]

57. K&R

[TCJ70]

59. We should be taxing all executive bonuses...

...until they pay back what they owe.

[nini]

60. it should be higher than that..

about 99.5

[classysassy]

62. Give them heck Dennis

he sure is a burr under the saddle of those wall street crooks.

[LWolf]

65. k & r for the best Democrat standing, bar none. nt

[bobshin]

67. DK right again. Too bad he doesn't play well with others, er, cave to the bluedogs

and repugs. DK is an example of someone who realizes that being an example may be the best someone in his position can do. He doesn't need to shout out loud he's an American, his actions speak for themselves.

[Blue Owl]

68. Go Dennis!

We the people thank you for looking out for us!

[Stealth of Nations]

69. we should mimic a Republican president instead and...

...tax them 90%. Eisenhower represent!

[liberalmike27]

70. I'm all in for that

Kudos Dennis.

We really need to stick with people like Dean, or Kucinich for president. When we get a centrist, like Obama or Hillary, we end up with compromise in the right of center, between the insane right, and the center. With a president on the left, hopefully the compromise will end up somewhere in the middle.

[bluestateguy]

71. THAT is a Kucinich initiative I could definitely support

I would only add one amendment: bar the TARP companies from simply passing the costs on to consumers in higher fees.

[Telly Savalas]

74. It seems like a reasonable idea worthy of consideration.

Is the Representative going to work to build a consensus to get something in this spirit passed?