A senior U.S. senator on Tuesday warned American International Group Inc. employees to return bonuses they are receiving or face being slapped with a major tax on those payments.
“They should voluntarily return them (the bonuses). If they don't we plan to tax virtually all of it,” Senator Charles Schumer, a member of the Democratic leadership, said in a speech on the Senate floor.
Schumer noted that AIG lost nearly $100 billion last year and is now being propped up by U.S. taxpayer funds. Providing performance bonuses to employees “Defines Alice in wonderland business practices ... it boggles the mind.”