First, the Obama Admin and his Congressional pals have known about these retention bonuses for months, and even gave AIG $30 billion more while aware of what was coming.

Second, the CEO of AIG was APPOINTED by the government in the fall.

Third, the move to tax the bonuses at 100% runs contrary to a provision in the stimulus bill already passed, a provision added by Christopher Dodd (D-CT), who received over $100,000 in campaign contributions from AIG.  Dodd successfully added a provision to the bailout bill that said these kinds of bonuses were off limits from the federales.

Third, plus a little more. This new tax proposal is an ex post facto law, prohibited by, uh, that document called, uh... Um...

The Constitution of the United States of America.

Whoops!

AIG should not have gotten anyone's tax money. Tax money shouldn't be taken at all, anywhere. Add to the immorality of taxation the immoral and unconstitutional action of "bailing out" a company through the federal gubment, and you have a pretty nasty mix. But it's it odd to hear Dodd and others, such as Chuck Schumer and Barack Obama, cry foul at people getting other peoples' money and doing with it whatever they want - no holds barred? Sounds uncannily like what Congress, the Senate and the White House do all the time!

Here are some fine lil' links for your perusal. Remember, the "retention bonuses" were expenses that the politicians knew about many months ago. The costs are related to employees who have been given notice that their jobs will probably be cut in six to eight months. As a way to stop these employees from going to competitors, the "retention bonuses" are offered contractually. If the emplolyee agrees to stay the given length of time, the bonus will be paid. At least, that's the theory.

http://finance.yahoo.com/news/AIG-chairman-says-retention-apf-14676079.h...
http://www.nypost.com/seven/03182009/news/columnists/spare_us_your_fake_...
http://americaswatchtower.com/2009/03/17/chris-dodd-amendment-permitted-...

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