House Votes 328-93 to Tax AIG Bonuses 90%; Cantor Votes for Tax Increase!

This was predictable.

The Democratic-led House overwhelmingly approved a bill on Thursday to slap punishing taxes on big employee bonuses from AIG and other firms bailed out by taxpayers.

The vote was 328-93.

But this wasn't.

Almost all Democrats voted for the measure, but the GOP conference was literally split in half, with conservatives – led by Minority Leader John Boehner – voting against the bill. But dozens of other Republicans, including Republican Whip Eric Cantor (R-Va.) and Reps. Adam Putnam (R-Fla.) and Roy Blunt (R-Mo.), waited until the last minute to vote yes, making a difficult vote in favor of a tax increase.

So, now that Eric Cantor has voted for a 90% tax on the rich, does that make him officially a "socialist?" :)

Tom Perriello Pushes to Block AIG Bonuses

Tom Perriello at a press conference pushes for legislation that would tax AIG executive bonuses at 100%, effectively winning them back for the taxpayers. Does this guy rock or what?!?

Webb Says AIG Bonuses "Out of Line," Urges "Accountability"

As usual, Jim Webb hits the nail right on the head with his statement on the AIG bonus scandal:

There is nearly universal agreement in the Senate that AIG, the recipient of nearly $200 billion in U.S. taxpayer dollars, is out of line by offering excessive bonuses to some of the very executives that helped to feed the financial crisis by investing in toxic assets. The American people deserve accountability on how their money is spent.

It is important to put into context that, while the U.S. auto industry was ultimately provided $24 billion in repayable loans to help ensure the viability of millions of American jobs, AIG received $197 billion in federal dollars with little apparent oversight. Of that amount, AIG has distributed tens of billions of dollars to foreign banks—more than the entire amount loaned to the auto industry. Furthermore, one of the requirements for the auto industry to receive federal assistance was to renegotiate existing workforce contracts, yet we are told that Wall Street contracts are sacrosanct.

Most agree that government action was necessary to stabilize the financial system, but lavish bonuses and payouts to foreign banks were not Congress’s intent and do not represent a proper usage of taxpayer money. I will continue to push the administration and this Congress to strengthen oversight, especially in light of AIG’s recent actions.

Thank you, Jim Webb!

P.S. Meanwhile, the Washington Post reports on "[a] tidal wave of public outrage over bonus payments swamped American International Group." In addition, President Obama is vowing to "pursue every legal avenue to block these bonuses."

Populist Anger Explosion Coming After AIG Bonuses?

Josh Marshall articulately explains why the AIG bonus story - bonuses going, no less, to "the very executives who caused AIG's implosion" and, "since all money is fungible...[is] being paid with taxpayer dollars"

Few exchanges have so captured the disconnect that makes this situation so politically explosive. We're collectively taking our country's future in our hands, spending vast sums of money to keep these companies from suffering the consequences of their own folly and (in many cases) criminality. And in return we're receiving cavalier dictates about pay-outs and bonuses from executives who by any reasonable measure work for us -- dictates we promptly accede to. There's a beggars can't be choosers problem there. And the disconnect is so mighty that it fuels the impression that the whole enterprise is not what it seems, not what we've been told, that in addition to picking up the tab we're being played for fools.

Is there a populist explosion coming in this country? I'm starting to believe, increasingly, that it might be. And if that explosion DOES come, it will be outrages like these AIG bonuses that light the fuse.