Mar
AIG Bonuses
I have remained mum on the AIG bonuses for a few days. However, here are my thoughts on the matter. Firstly, if Congress did not want them to get the bonuses, they should have actually read the legislation they passed (there’s a novel idea) and removed the bonuses from that legislation (the stimulus bill). These bonuses were part of compensation promised to these employees. Perhaps a lot of people do not understand how bonuses work. Even though the company may overall be struggling, individuals can still be meeting goals. For these individuals, they do not get a set salary no matter what happens. They get bonuses to motivate them to reach goals. So, by forcing them to not get the bonuses we are penalizing individuals.
Perhaps the scariest part of the whole thing is what the House of Representatives did last week. They passed legislation taxing the bonuses at 90%. This should scare the daylights out of every one of us. Congress has now set the precedent that they will target a group of individuals (or a single individual for that matter) and tax that group at an exorbitant rate because of a populist opinion of these individuals. What is to stop this from happening in the future if you or your company does something that Congress does not like?? The answer is nothing.
Unless we kick all these guys out and get in new leaders that are there for a short period of time and actually uphold the Constitution. Term limits anyone?
