I love my country, please do not destroy it.
The U.S. House of Representatives today passed a retroactive 90% tax on bonus payments for A.I.G. employees. This is not yet law, and it must not become law.
Before I get into the article, let me clarify that I am not a lawyer. Given that, lets just start with this, it is a little document called the
Constitution of the United States. I’m fairly certain this is an important part of our framework of law.
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
Article. I.
Section. 9. The Migration or Importation of such Persons as any of the States now existing shall think proper to admit, shall not be prohibited by the Congress prior to the Year one thousand eight hundred and eight, but a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person.The Privilege of the Writ of Habeas Corpus shall not be suspended, unless when in Cases of Rebellion or Invasion the public Safety may require it.
No Bill of Attainder or ex post facto Law shall be passed.
I’ve highlighted the relevant portion… If I’ve read that correctly, that means you cannot pass a retroactive law – period. Okay, now, lets get onto today’s action by the House of Representatives
Here are a few parts of the story from Yahoo! (AP):
WASHINGTON (AP) — Denouncing a “squandering of the people’s money,” lawmakers voted decisively Thursday to impose a 90 percent tax on millions of dollars in employee bonuses paid by troubled insurance giant AIG and other bailed-out companies.
The House vote was 328-93. Similar legislation has been introduced in the Senate and President Barack Obama quickly signaled general support for the concept.
Look, I don’t like it that the employees are getting bonuses with my tax dollars, in fact I don’t like that my tax dollars are being used to prop up the firm. But this must be unconstitutional. The House of Representatives is circumventing contract law with this tax. What ever happened to no taxation without representation? The last time the King and his minions decided to over tax the citizens we had a revolutionary war…
“I look forward to receiving a final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated,” the president said in a statement.
I’m sorry Mr. President, but you and the Congress are on the verge of overstepping your boundaries. This is reprehensible behavior. If you do not like the bonus payments, then make it a condition of any future monies that no bonuses are paid out. You must not circumvent the law like this. While not abrogating the contracts, you have effectively abrogated the contracts. If business cannot be assured that a contract is valid based upon the law in force at that time, they will not do business with us.
House Speaker Nancy Pelosi, D-Calif, told colleagues, “We want our money back now for the taxpayers. It isn’t that complicated.”
The outcome may not have been complicated. But the lopsided vote failed to reflect the contentious political battle that preceded it.
Republicans took Democrats to task for rushing to tax AIG bonuses worth an estimated $165 million after the majority party stripped from last month’s economic stimulus bill a provision that could have banned such payouts.
For the love of God, you had the provision in the Bill! You made the mistake of taking it out, now put it in any future bill and put the issue to rest. Do not pass this legislation.
“This political circus that’s going on here today with this bill is not getting to the bottom of the questions of who knew what and when did they know it,” said House Republican Leader John Boehner of Ohio.
He voted “no,” but 85 fellow Republicans joined 243 Democrats in voting “yes.” It was opposed by six Democrats and 87 Republicans.
Every one of the members who voted “yes” should be removed from office. From Wikipedia: Oran’s Dictionary of the Law (1983) defines treason as: “…[a]…citizen’s actions to help a foreign government overthrow, make war against, or seriously injure the [parent nation].” In many nations, it is also often considered treason to attempt or conspire to overthrow the government, even if no foreign country is aided or involved by such an endeavour. The rule of law and contract law is one of the things that makes this country great. By circumventing contract law, these representatives are threatening the very fabric of our nation.
The bill would impose a 90 percent tax on bonuses given to employees with family incomes above $250,000 at American International Group and other companies that have received at least $5 billion in government bailout money. It would apply to any such bonuses issued since Dec. 31.
The House vote, after just 40 minutes of debate, showed how quickly Congress can act when the political will is there.
It was only this past weekend that the bailed-out insurance giant paid bonuses totaling $165 million to employees, including traders in the Financial Products unit that nearly brought about AIG’s collapse.
AIG has received $182.5 billion in federal bailout money and is now 80 percent government-owned.
Disclosure of the bonuses touched off a national firestorm that both the Obama administration and Congress have scurried to contain.
In a statement issued by the White House late Thursday, Obama said the House vote “rightly reflects the outrage that so many feel over the lavish bonuses that AIG provided its employees at the expense of the taxpayers who have kept this failed company afloat.”
There is more in the actual article.
Look, I’m just as frustrated as the next guy that a broken firm is paying out huge sums of taxpayer money to its employees. But the reality is that our government enabled this behavior, and they need to simply suck it up, impose restrictions going forward, and call it a day. Please, please, please, do not circumvent contracts. The core of our society is that we know exactly what rules we work under.
One more thing here, President Obama was on Leno tonight. Here is a quote:
“If we can get back to those values that built America, I think we are going to be okay.”
Indeed Mr. President. Lets get back to those values. I implore you to step back, read the Constitution again and consider what the Congress and your administration are doing right now. Lets get back to those values that built America, please.
