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.