Posted on 03/17/2009 1:32:20 PM PDT by Constitutionalist Conservative
Fox News reports on one popular idea bouncing around Congress as the torch-and-pitchfork mob tries to figure out a way to punish AIG for honoring its executive compensation contracts:
Senate and House lawmakers on Monday night returned to the idea of imposing heavy taxes to recover the bonus money.Emotions are running at a fever pitch, and perhaps that's why our distinguished legislators have overlooked the simple fact that their taxation idea is unconstitutional."You can write a tax provision targeted specifically at 98 percent of the taxable proceeds," Dodd said, adding that it wouldn't violate the terms of the AIG contracts.
Rep. Carolyn Maloney D-N.Y, the chair of the Joint Economic Committee, also called for a 100 percent tax on bonuses not related to commissions. And Rep. Gary Peters, D-Mich., introduced a bill to recover practically all of the money through hefty taxes.
"If (AIG CEO Edward) Liddy does nothing, we will act and will take this money back and return it to its rightful owners, the American taxpayers. We will take this money back by taxing virtually all of it," Sen. Chuck Schumer, D-N.Y., said Tuesday. "So let the recipients of these large and unseemly bonuses, be warned. If you don't return it on your own, we will do it for you."
But while Dodd on Tuesday said lawmakers would continue to pursue this avenue, he added: "I don't know whether or not as a practical matter it will produce the kind of results we're looking for. We're all searching for a way to get this money back and one way or another we're going to figure out how to do it."
Nevertheless, Senate Majority Leader Harry Reid vowed to recover a sizeable chunk of the money.
"Remember, we, as a Congress, are not defenseless. We can also do things," the Nevada Democrat said Tuesday, announcing he has tasked Senate Finance Committee Chairman Max Baucus, D-Mont., with crafting a proposal to recover the bonuses.
Reid said Baucus "is going to make a proposal that I think will certainly send a message to you people at AIG and all others who try to benefit from the hardships the American people face ... AIG recipients of these bonuses will not be able to keep all their money, and that's an understatement."
I agree with the title itself!
But so what? When was the last time the government was actually limited by the Constitution? They’ll find a way...
bumping this sucker.
it most certainly was. I recall it being challenged in court, but it didn’t get to scotus, iirc (and it has been a long time)...
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