Dem Congressman introduced 50% tax on bonuses

[cali]

By Eric Zimmermann - 01/12/10 12:58 PM ET

Rep. Peter Welch (D-Vt.) has introduced legislation that would impose a 50% tax on excessive bonuses at firms that received bailout funds.

The "Wall Street Bonus Tax Act" would apply only to bonuses over $50,000, and would use the tax revenue to support loans to small businesses.

Welch unveiled the proposal at a press conference in Burlington this morning.

"As most Americans struggle to endure a long and wrenching recession, the same Wall Street bankers who came to the American taxpayer with hat in hand are now preparing to pocket record-breaking bonuses,” said Welch. “Financial firms that received taxpayer assistance must remember that they owe their return to profitability to hardworking Americans.”

Reports this week indicated that a handful of the largest firms receiving TARP funds--Citigroup, Morgan Stanley, Chase, Goldman Sachs, and Bank of America--will pay out $90 billion in bonuses.

The White House has expressed dismay at such payouts. Obama has repeatedly said that many Wall Street firms "still don't get it." One of the president's top economic advisers said this weekend she was outraged by such bonuses.

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http://thehill.com/blogs/blog-briefing-room/news/75459-dem-congressman-introduced-50-tax-on-bonuses

[Last Stand]

1. Obama says they "still don't get it."

Yeah, they do. $50 million at a time.

DO SOMETHING about it!

[w4rma]

2. That's too small. (nt)

[Vincardog]

3. I express dismay that Obama still does not get "it" Tax the fuckers at 99% of everything over a mil

And make them pay SSI on ALL OF IT

[shawcomm]

6. President Obama doesn't set tax rates

Congress needs to get off its dead useless collective ass and tax the hell out of these bonuses. Start a new version of the WPA and CCC with the money, not loans to more business, small or otherwise.

[cali]

7. well, seems that's what Welch is trying to do.

How about supporting him? Call your rep and express support for his legislation. Call his office and thank him.

[Vincardog]

8. He is the LEADER of the Democratic Party. He sets policy. Why haven't I heard him call for the tax?

[ThomCat]

4. A 50% tax is a start

But that will still leave more than $45 billion in bonus. There is no way in hell they do anything to really deserve that kind of money.

They are moving other people's money around, gambling with other people's money, and manipulating the value of other people's assets.

They aren't producing anything of value to society. In fact, there was a study recently that was posted and discussed here on DU that documented that they destroy more value than they earn. They have a net negative effect.

Teachers, sanitation workers, and others who are vital to society produce value. They are underpaid for the value they contribute to society. These goons on wall street don't care what they destroy, what they destabilize as long as they become wealthy. Everyone around them can crash and burn as long as they personally live in luxury.

So taxing them is only a start. The entire system on Wall Street needs to be re-regulated and reformed so that these parasites can't build bubbles. They can't be allowed to perform meaningless manipulations solely to get fees. They can't be allowed to game the values of other people's assets because they have running bets. They can't be allowed to pay themselves bonuses so large that even after a 50% tax they are still getting millions of dollars.

All of these behaviors earn them money, but they undermine an honest economy and suck money out of the hands of producers and into the hands of speculators. :(

[SOS]

5. Hell will freeze over before an American banker is taxed at 50%.

They own the Congress.
Wall Street will tell their employees on Capitol Hill what the tax rate will be, not the other way around.