Simple solution to the AIG bonus issue

[kaygore]

Since the federal government claims that the contracts that AIG has with employees who receive bonuses precludes any attempt to not pay the bonuses; then if Congress is really serious about the bonus issue, Congress should simply pass a retroactive tax law that states that bonuses awarded employees of companies receiving federal bailout money, as AIG is, will be taxed at 100% of that bonus (or better yet, 110%).

Rather than wringing their collective hands and claiming that nothing can be done to halt bonuses or excessive salaries and other rewards, simply tax the living daylights out of that money until the madness stops.

I don't buy the government's claim that they are simply helpless to stop the plunder. Make the financial rewards so toxic and the greed will halt.

[elleng]

1. Send suggestion to WH, OK?

Might be a useful idea.

[zanne]

2. I don't buy that they're helpless, either.

Getting rid of the bonuses should be made a condition of the loan.

[woodwrite]

7. ... Should HAVE been

Should have been a condition all along.

[zanne]

21. I guess you're right about that, but....

Given that these are extraordinary times and considering the fact that the American public is paying for those bonuses in the form of taxes, shouldn't the top bonused execs have to negotiate with US?

[remedy1]

3. Tax laws cannot be retroactive.

Won't stand up in the courts.

[kaygore]

4. OK then

Then change the tax code for 2009 when the bonuses are being awarded.

[depakid]

5. You're assuming that the people being paid fall under American tax jurisdiction

[Indy Lurker]

8. How about a law

...that simply states any company that receives over 100 Billion in Government money is prohibited from issuing bonuses.

Criminal Law trumps contract law.

Typically contracts even include the phrase. "...unless prohibited by law."

[kaygore]

17. Looks like at least one member of Congress is going to try

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3785829&mesg_id=3785829

[sandyj999]

6. I don't buy it either. Just more of the same .......n/t

[RC]

9. Ex post facto law

http://en.wikipedia.org/wiki/Ex_post_facto_law

Generally speaking, ex post facto penal laws are seen as a violation of the rule of law as it applies in a free and democratic society. Most common law jurisdictions do not permit retroactive criminal legislation, though some have suggested that judge-made law is retroactive as a new precedent applies to events that occurred prior to the judicial decision. In some nations that follow the Westminster system of government, such as the United Kingdom, ex post facto laws are technically possible as the doctrine of parliamentary supremacy allows parliament to pass any law it wishes. However, in a nation with an entrenched bill of rights or a written constitution, ex post facto legislation may be prohibited.

[kaygore]

13. Very well said, but a gal can hope.

[kaygore]

18. Check out the following DU thread:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3785829&mesg_id=3785829

[ColbertWatcher]

20. More like a nixo-facto law ...

http://www.wikiality.com/Nixo_facto

[Hubert Flottz]

10. "Simple solution to the AIG bonus issue"

PUT CROOKS, THIEVES AND BANK ROBBERS, IN JAIL WHERE THEY BELONG!

[chimpymustgo]

11. PRISON TIME. HARD FUCKING LABOR. And RESTORE our 401K's and pensions.

[kaygore]

12. I agree but doesn't look like that's goiing to happen

If one of us had done what these guys did, we would be in jail for life.

[Hubert Flottz]

14. The "Grown-ups" in the "Justice" Department need to dust

off the RICO act and apply it to the crooks and thieves who have robbed America blind.

Racketeer Influenced and Corrupt Organizations Act

http://www4.law.cornell.edu/uscode/18/usc_sec_18_00001961----000-.html

http://www4.law.cornell.edu/uscode/18/pIch96.html

[kaygore]

15. Excellent solution

We need to do something. If they aren't held accountability and punished, they will simply do it again.

[gratuitous]

16. The IRS just assessed back taxes against Allen Stanford

Dinged him for something like $220 million in assessments. I'd say to the AIG folks, "You want your bonus? Allen Stanford has it. Go get him." If the AIG folks collect the bonuses, all well and good. And I would magnanimously cancel Mr. Stanford's tax liability, because I'm such a big-hearted guy.

Otherwise, let's just lock 'em all up in Chunderdome. Last person alive is allowed to come out and claim his bonus.

[kaygore]

19. Appears that it can be done. Check this out:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3785829&mesg_id=3785829