Open Court Topic #5: The Crooked Bonus Onus?
By Corey Thompson, filed in Corey Thompson, Open Court on Mar.24, 2009
***(Editor’s Note: In an effort to promote more dialogue among our readers, “The Thirsty Quill” will run a special series entitled “Open Court” each week. Typically these questions/prompts will run in conjunction with a controversial issue or ‘hot topic,’ while others may be entirely random and cover a more obscure subject altogether. Regardless, the aim of these questions/prompts will be to encourage more debate, dialogue, and discussion among readers of ‘The Quill.’)***
“Open Court” Question of the Week:
What is your opinion regarding the bonuses that were paid out to AIG Executives in the midst of the financial ‘crisis’ that the company was facing that prompted the need for a taxpayer bailout/rescue package worth hundreds of billions of dollars?
Next, tell us how you feel about the right of the Federal Government to apply a high tax on such bonuses, and more specifically, one that only applies to AIG Executives.
March 25th, 2009 on 10:26 am
I believe that we have got to be more adaptable in dealing with this situation. We have to be able to make sure that folks who had nothing to do with the toxic side of AIG don’t get their hard earned incentives taken from them. That being said some concession is necessary when you consider what those in the auto industry have given up for their organizations began to fail. As one AIG executive said if I do my job as a plummer and some irresponsible electrician burns down the house should I not get paid for my work? It is a valid point. We need to take a breath, impossible with the sensationalizing media, and strip away the pieces of this issue and deal with it in a fair and methodical way.
Also I heard yesterday that 85 mill of the bonuses have been returned (half or just over of the total bonuses, most of which had nothing to do with the default credit swaps) If you tax the remaining at 90% that leaves around 7.5 mill. retained by the bonus earners. Is that more palatable?