Well I suppose I can say Spring Break fever caught me off guard. It has been some time since my last posting but I have been amazed by what I have seen in the news over the past couple of weeks. AIG executives taking massive bonuses then being threatened by Congress with a 90 percent tax, Obama faces criticism even from some democrats over proposed spending, and turbo tax Geithner wants to take over privately owned businesses. These are just a few of the top stories that have been making waves over the past few weeks.
But where to begin? As much as I would like to discuss Geithner’s plan to take over failing companies and control what different executives earn a year, I was so disgusted at the idea of Congress imposing a 90 percent tax on certain individuals that I was almost beginning to feel for the bailout executives. This was primarily who this tax was going to effect. Executives working at companies that had received a government bailout would be taxed so exorbitantly if they took any type of bonus after receiving said bailout.
The most astonishing fact about this entire ordeal is that both Democrats and Republicans were signing on to this idea. If any of these politicians had done their jobs in the first place and read the bailout bill, they would have known that this bill allowed for these annual bonuses to be dispersed. I suppose reading something before they sign onto it just might be too much work for our elected representatives. I wouldn’t want them to do too much for the taxpayer money they supposedly earn every week.
But back to this 90 percent tax. Our politicians would like to fix a mistake they made by imposing an ungodly tax on certain people. It should be noted however, that this tax would supposedly only be imposed against executives who have received a bonus after receiving a bailout. However, once the government imposes any type of tax or fee, getting rid of that tax or fee can be a steep uphill battle. Also coming into question, is the constitutional validity of this act. Congress would be punishing and targeting one small group of people with a tax.
Fortunately, due to the overwhelming criticism drawn from both politicians and American citizens, many of the AIG executives have returned their bonuses without having the government come after them. Public criticism works. The government need not tax their way out of a problem. Which brings me to another thought; Congress would not even be able to tax all of the executives. Many of those receiving the bonuses do not reside in this country and would therefore be able to avoid the tax. Making this motion of a 90 percent tax a mere show for the American taxpayers without getting any actual results.
Open Thread
2 days ago
I find interesting is that Senator Dodd (Dem. Conn.) had his hand in approving the original bill allowing AIG to pay the bonus. Then during the outcry from the citizens, he changes course. Why is it that politicians cannot do the right thing by the people the first time? Why do we always have to yell in order for them not to stick it to us?
ReplyDeleteIt seems that every time a mistake is made by the government, instead of counteracting their first mistake by retracting whatever act or bill caused it, they simply impose a new slap-painted measure that is like a sieve on a wound. All the problems just flow through it, and the average person is to think that they have affected a solution to the problem, "Oh how responsive our government is!" But more of us are beginning to notice when the "solutions" don't solve the problem. We are becoming more nosy, at least some of us, into what our government does and how it does so.
ReplyDeleteIt has become a part of the government to right a wrong by imposing or raising a tax on it. We have a sin tax that makes smoking expensive for no other reason than the government feels it's wrong and the best solution to them is a tax. That's just how the government functions and unfortinately people are upset about this situation so the government wants a kill them tax.
ReplyDelete