Compounding Problems

From the Washington Post:

A proposal from Senate Finance Committee Chairman  Max Baucus (D-Mont.) and the panel’s ranking Republican, Charles E. Grassley (Iowa), would levy an excise tax on AIG and the executives who received the payments, adding up to more than 90 percent of the total of the bonuses. That tax would also apply to future bonuses awarded, either by AIG or by other firms receiving federal aid.

Problem 1: The initial sloppy and negligent bailout to AIG in 2008.

Problem 2: More bailouts to AIG in 2009.

Problem 3: AIG pays out huge bonuses.

Those three problems are depressing, but the idea that we would institute a special tax only applicable to certain workers at certain firms after the fact is troubling. Call it “problem 4”. I don’t support anything about AIG, but Congressional and IRS lynch mobs are even scarier.

4 thoughts on “Compounding Problems

  1. I agree with you and the advantage that AIG has is that they think that they are too big to fail. Every time they are in trouble they look at FED for rescue and then will party afterwards once the clouds of default is faded for a while

  2. When the people in Washington stop voting themselves pay raises, stop including outrageous pork into every major bill that comes their way, takes the time to actually read the legislation they are passing, and stops thinking that they must act to the extreme to solve problems that many of them have no clue about, then, and only then, will I start to believe that there may be a light at the end of the tunnel. Until that time and with business as usual only more so currently being the rule of the day, I believe that the tunnel only grows longer and that government is as bad as, and maybe worse than, the problems they are trying to fix.

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