U.S. Congress slaps 90% Tax on bailout bonuses
After the CEO of troubled Insurance Giant AIG responded to public outrage and a U.S. Congressional Hearing with little more than a shrug and the assurance that he would do his best to encourage his executives to give back half of their $165 million in bonus money, it took Congress just 40 minutes to vote decisively in favour of imposing a 90% tax on the millions of dollars in employee bonuses paid by AIG and any other companies that were bailed out by the American taxpayer. In a statement issued by the White House, President Obama said the House vote “rightly reflects the outrage that so many feel over the lavish bonuses that AIG provided its employees at the expense of the taxpayers who have kept this failed company afloat.” AIG received $182.5 billion in federal bailout money and is now 80 per cent government-owned.