I'm glad someone is an adult in Washington.
Acknowledging "considerable outrage" about the bonus payments, Geithner said AIG will pay the Treasury an amount equal to the payments, and the Treasury will deduct that amount from the $30 billion in government assistance that will soon go to the company.
Rather then taxing these people 100% or breaking a legal and binding contract as specified in the Constitution AIG will just pay back the money. They simply deduct it from the $30 billion and then agree to not pay out any other bonuses until the loan money is paid back. No muss no fuss and no one has to get killed at AIG.