Economics

Should Ten Percent Appear Too Small, Be Thankful I Don't Take It All

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Rep. John Boehner (R-Ohio), writes the AP, argues that the bill is "diverting attention from why the administration hadn't done more to block the bonuses before they were paid."  Mike Pence (R-Ind.) calls it a "constitutionally questionable" piece of legislation designed to "divert attention away from the truth that Democrats in Congress and this administration made these bonus payments possible." HR 1586, which passed 328-93 today, will impose a 90 percent tax on bonuses received by those working for companies that received bailout money.

The AP has more:

The House passed a bill on Thursday that would impose punishing taxes on big employee bonuses from firms bailed out by taxpayers.

Democrats pressed for the quick action. 

"The American people demand protection and that's what we're doing today," said Rep. Charles Rangel, D-N.Y., chairman of the tax-writing House Ways and Means Committee…

The bill levies a 90 percent tax on bonuses paid to employees with family incomes above $250,000 at companies that have received at least $5 billion in government bailout money.

"We figured that the local and state governments would take care of the other 10 percent," said Rangel.

Rangel said the bill would apply to mortgage giants Fannie Mae and Freddie Mac, among others, while excluding community banks and other smaller companies that have received less bailout money