The "bonus tax" has passed in the House. Minnesota's congressional delegation voted along partisan lines, with Ellison, McCollum, Oberstar, Peteson and Walz voting for H.R. 1586, and Bachmann, Kline and Paulsen opposing it.
The Minnesota Republicans' unified position was not reflected iamong their colleagues from across the country, however, as the House Republicans split nearly evenly, with 85 supporting the measure, while 87 opposed it.
A press release from the congressional office:
Walz Votes to Recover Big Taxpayer-Funded Bonuses from “Bailed Out” Wall Street Executives
(Washington, DC) – Today, Congressman Tim Walz voted for H.R. 1586, the Bonus Recoupment Tax Bill, to force the wealthy executives of financial institutions that have received bailout money from the American taxpayers to repay 90 percent of any bonuses that they receive. H.R. 1586 passed the House by a vote of 328-93.
“Wall Street executives who ran their companies into the ground and brought this economy to the brink of collapse shouldn’t be rewarded with taxpayer funded bonuses,” said Walz. “I voted three times against the Wall Street bailout because it didn’t include adequate protections for the American taxpayer. With failed companies like AIG paying executives big bonuses with taxpayer dollars, Congress needs to act to recoup those bonuses and put the taxpayers first,” Walz said.
Walz continued, “Today, I supported H.R. 1586, because it will take back the taxpayer-paid bonuses these executives have received. This bill will make sure that taxpayer dollars aren’t funding lavish bonuses at companies that have received bailout funds. I’ll continue to work with my colleagues in Congress to put middle-class families first.”
To recapture bonuses that are going to the executives of failed big banks, H.R. 1586 will impose a 90 percent income tax on bonuses paid after December 31, 2008, by companies that have received over $5 billion in Troubled Assets Relief Program (TARP) funds, Fannie Mae, and Freddie Mac. The tax would also apply to bonuses paid by entities affiliated with these companies. Three-fourths of the TARP funds that have been spent went to companies that would be covered by this bill, though the many smaller, community banks that received less than $5 billion will not be affected. This tax will not apply to any bonus that is returned to the company in the same taxable year that the bonus is paid. The bill will only affect executives with adjusted gross income above $250,000.
We wonder what Bachmann, Kline, and Paulsen are holding out for? Stephem Colbert's suggestion:
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