Wednesday, March 18, 2009

Senate Finance Chairman Suggests Excise Tax On AIG Bonuses

Senate Finance Chairman Suggests Excise Tax On AIG Bonuses;

Senate Finance Committee Chairman Max Baucus, D- Mont., suggested Tuesday he and other lawmakers will pressure the Internal Revenue Service to impose hefty excise taxes on bonuses paid to executives of American International Group Inc. (AIG) that have stirred outrage.

"We need to find out the answer to this question: What is the highest excise tax we can impose that is sustainable in court?" Baucus said to IRS Commissioner Doug Shulman during a hearing Tuesday.

Shulman declined to give a specific answer, saying he couldn't go beyond President Barack Obama's statement on Monday, in which Obama expressed "outrage" over the bonuses.

But Shulman said he recognized the finance committee wants to address the issue of the AIG bonuses, and "we stand ready for IRS to do what it can."

Sen. Bill Nelson, D-Fla., said it may be possible to impose excise taxes as high as 90% on the bonuses. ...

Comment: What a mess Congress has made playing shopkeeper with our money.

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