Yet another feel good populist BS thing.
The $838 billion measure includes an amendment penalizing companies that paid bonuses greater than $100,000 to executives after receiving government rescue funds last year. The amendment would require the companies to repay within four months any portion of the bonus above $100,000 or face an excise tax of 35 percent on the portion of the bonus above $100,000.
What keeps these companies from just paying the excise tax on the $100,000? There is no reason for them to give the money back early. They will just pay 35% on it and forget about the early payment clause. Also this smacks of double taxation because the people that got the bonuses will have to declare them as earned income and pay taxes on them.
I think the Obama Administration just wants to move Wall Street to Dubai or London where the government isn't so rapacious when it comes to bonuses. Also I wonder if it is the right time to penalize people that are trying their best to keep their businesses afloat? They could just jump ship and work for a private equity firm and leave their old company high and dry and let them fail. I'm pretty sure some of these guys probably won't work nearly as hard if they know the government suddenly becomes a member of our Board of Directors.
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