US lower house passes tax penalty law by 328-93
The US House of Representatives, the lower of the US Congress’ two chambers, voted 328-93 in favour of legislation that will tax 90% of employee earnings above $250,000 at companies that have received more than $5bn in government bail-out funding.
It inserted wording into the recent $787bn fiscal stimulus bill.
The House, A different version of similar legislation is expected to be discussed by the Senate early next week, and would need to be approved by it and by President Barack Obama to become law.
Obama said: "Now this legislation moves to the Senate, and I look forward to receiving a final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated.”
Other AIG news
- New York Attorney General Andrew Cuomo took receipt of a full list of the bonus recipients after subpoenaing AIG’s board, and said he would carry out a “risk assessment” before agreeing to release the names amid fears for the individual’s safety.
- A number of senior AIG executives are however known to have already repaid their bonuses following the intense row which has consumed the American media, and led to a massive public outcry. Among those to have returned the money in full is Douglas Poling, who works in energy and infrastructure investments, who received the largest single payment of $6.4m.
- Small crowds of protesters angered by the government's $180 billion bailout of AIG marched in cities across the United States on Thursday, mocking bonuses paid to employees who helped push the company to the brink of collapse. The largest US trade union, the SEIU, and activists from MoveOn.org called protests for more than 100 cities the day after President Barack Obama declared, "People are right to be angry -- I'm angry."
