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U.S. Rep. Paul Tonko (D-Amsterdam) voted today in favor of legislation (H.R. 1586) that would impose a 90% income tax on bonuses paid to individuals from companies that have received more than $5 billion in TARP funds. That would include $165 million in bonuses paid to executives with American International Group. The bill now moves to the Senate for consideration.

“Taxpayer funds should not be used to reward executives at companies whose irresponsible decision making brought the nation’s economy to the brink of economic collapse and prompted a government bailout,” said Rep. Tonko. “The fact that these bonuses were paid by AIG shows sheer arrogance and total insensitivity to our financial crisis and the plight of our working families. We need to use all the tools at our disposal to protect Americans from the poor judgment of these companies.”

The new tax would apply to any bonuses from these companies paid out after December 31, 2008, and would only apply to bonuses received by individuals with an adjusted gross income over $250,000.
                                                                                     

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