Schumer, as he's wont to do, proposes that Congress write a bill to tax the AIG executive bonuses if the execs don't give back the money.
Schumer says that AIG executives should not be getting bonuses considering they ran the company into the ground. I actually agree, but consider that the Democratic Congress voted themselves a pay raise despite the poor economy and the nearly the lowest Congressional approval ratings in history. Do you think any members of Congress will approve legislation to remit this years pay increase?
Furthermore, where does Schumer think he has the legal authority to pass a new law in order to impose a specific retroactive tax on one small group of people? That's not how the U.S. legal system works, but perhaps this is what Obama had in mind when he spoke of "redistributive change?"
I'm sorry, but if legislators didn't want this to happen they shouldn't have bailed out AIG. They shouldn't have given them billions with no preconditions or conditions on how to use the money. I can't help but think "Well what the fuck did you expect to happen morons!?"
Both the media and lawmakers seem to be blatantly ignoring the simple fact that these executive bonuses were part of private contracts agreed upon prior to AIG taking any bailout money. That's the most pertinent point in all of this. I don't care what Congress or Obama think is "fair." I care what the contracts say about the matter, since that trumps the "feelings" of the bigheaded fucktards in Congress and the White House.Do I think it's insane that the company was giving out contractual bonuses that were not dependent upon the actual performance of the executives? Absolutely, but that's water under the bridge at this point. (and Congress does it with their own pay)
If the language in their contracts says they get paid bonuses no matter what happens to the company then AIG has every right to pay out these bonuses. Actually it's more than that, they have a legal obligation to pay out the bonuses.
I'm pissed that my taxes are going to pay out bonuses to these clowns but contract law is one of the things that's the basis of a civilized society. The last thing I want is for the government to be able to come in and retroactively & arbitrarily nullify and/or amend mutually agreed upon contracts between two private parties.Give the government the power to do that and you go down a road with freedom nowhere in sight.