Stephen Crowley/The New York Times
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By DAVID STOUT
Published: March 19, 2009
WASHINGTON — Spurred on by a tidal wave of public anger over bonuses
paid to executives of the foundering American International Group, the
House voted 328 to 93 on Thursday to get back most of the money by
levying a 90 percent tax on it.
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The measure easily surpassed a procedural hurdle requiring a two-thirds
majority vote, thanks to considerable Republican support. The Senate
will consider a roughly similar measure, perhaps next week. If something
is approved in that chamber the House and Senate versions would have to
be reconciled, so prospects for final passage of a bill are unclear.
But there was no doubt after the House vote that the lawmakers were
keenly aware of their constituents' anger, which was focused on A.I.G.,
although the House measure would apply to executives of any company
getting more than $5 billion in federal bailout money.
In one sign of the issue's political potency, 85 Republicans joined 243
Democrats in voting for the measure rather than for a rival proposal put
forth by the Republican leadership. Only 6 Democrats voted against the
bill, along with 87 Republicans.
Skipping on down...
The bill that the House approved on Thursday was offered by
Representative Charles B. Rangel, the New York Democrat who heads the
House Ways and Means Committee. It would take 90 percent of the A.I.G.
bonuses back in federal taxes. It would apply to bonuses paid since Jan.
1 by A.I.G. or any other company accepting more than $5 billion in
bailout money.
"This is not going to happen again," Mr. Rangel said. "The light is
flashing and letting them know that America won't take it."
Mr. Boehner was disdainful of Mr. Rangel's proposal, calling it "a sham"
and urging adoption of a bill to get back the bonus money at once. The
$165 million in bonuses has spawned rage in part because it was paid to
executives in the very unit of A.I.G. that arguably turned a stable,
prosperous insurance company into a dice-rolling financial firm in
search of quick profits.
The Republicans said their measure would get back all of the bonus
money, not just most of it.
And they said it would do so within two weeks, as opposed to the year or
so that the Democrats' bill would take — assuming, that is, that the
A.I.G. executives filed honest tax returns.
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