Congress approves 90% tax on AIG bonuses - News, Weather, Sports, Toledo, OH

Congress approves 90% tax on AIG bonuses

House passes bill taxing AIG and other bonuses

WASHINGTON (AP) - The Democratic-led House has approved a bill to slap a 90 percent tax on big employee bonuses at firms that are being bailed out by taxpayers.

The tax would apply to families with incomes above $250,000 at companies that have received at least $5 billion in government bailouts.

Democrats led the charge even though a provision that would have made such payouts illegal was stripped from last month's $787 billion stimulus bill by its Democratic sponsors. Voting "yes" were 243 Democrats and 85 Republicans. It was opposed by six Democrats and 87 Republicans. But in the closing moments of the roll call a lot of Republicans switched from the "no" column to the "yes" side before the final vote was called.

Bonuses totaling $165 million, were paid to employees of AIG over the weekend, including to traders in the unit that nearly ruined the company. AIG has received billions in government bailout funds.

House Minority Leader John Boehner says the bill was "a political circus" to divert attention from why the administration and congressional Democrats had not done more to block the bonuses.

Read more from CNN: House passes bill taxing Wall Street bonuses.


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