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What to do with AIG?

March 18, 2009

While AIG is surviving on $170 billion in tax payer life support, $165 million in bonuses are supposed to be paid out to AIG company executives.  Now that the White House has taken an interest in the matter, lawmakers have been put to work. They don’t have a choice since disclosure of the matter has led to public outrage.  Fathoming the idea of paying these kind of bonuses in a time like this is sickening. Every legal means possible will be used to ensure that these bonus payments don’t take place.  The executives on the receiving end of these expected bonuses better go into hiding if this ends up going through.  AIG has been asked to restructure its bonus contracts, but says it isn’t legally able to.  Regardless, severe tax penalties will definitely be placed on these bonuses.  An outline of this has already been depicted as follows:  60% tax on bonuses of $10,000 or more when the government owns at least 79% of the company.  AIG is the only company that fits into this bill.  This tax is in addition to the 35% tax rate that many of these executives already pay as part of their income.  Passing a bill that allows taxing somebody’s entire income is something that Republicans will bring up immediately.  Taxpayers just want the money that has gone into AIG to be repaid.  Companies always find loopholes in contracts, and AIG is trying to make the excuse that retaining their executives bonuses goes against the contract, and can lead to a major lawsuit.  Why would individuals that aided in the creation of this downfall in the first place even be thought about?  I hope that all of these executives are thrown on the streets and become part of the 8.1% unemployment rate statistic.  They are all greedy bastards, and that is why our country is on its way to depression status.


By Mikeyrolls

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