House passes tax to recoup most of AIG bonuses
The next time you hear complaints over a do-nothing Congress, give praise.
Why? I'm glad you asked. Consider how the House passed the 90-percent tax on certain bonus payments and the stock market tanked:
More...Stocks stumble toward 2nd weekly gain in a row
The mood on Wall Street seemed to darken as the week wore on because of the controversy over those $165 million in bonuses at American International Group (AIG, news, msgs). Not so much because investors thought AIG was being unfairly singled out.
Rather the fear was that Congress' legislation to tax the AIG bonuses and other bonuses retroactively would drive top talent out of banks and other financial companies that have received government aid. Nineteen states now have opened investigations into the bonuses.
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