House OKs 90% Tax on AIG Bonuses

By M. Morris,  Newser Staff
Posted Mar 19, 2009 2:46 PM CDT
AIG CEO Edward Liddy testifies before the House Financial Services Subcommittee on Capitol Markets, Insurance and Government Sponsored Enterprises in Washington, Wednesday, March 18, 2009.    (AP Photo/Pablo Martinez Monsivais)
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(Newser) – By a 328-93 vote, the House today approved a bill that would recover most of the bonus money awarded to executives of bailout-buoyed AIG by taxing it at 90%. The measure drew significant Republican support, and some Democrats made it clear the legislation is an attempt to persuade execs to return the payments voluntarily, the Washington Post reports.

Lawmakers on both sides of the aisle heaped scorn on the bonus recipients during spirited debate this morning, the New York Times adds. "The people have said 'no. In fact, they said, ‘Hell no, and give us our money back,'" shouted North Dakota Democrat Earl Pomeroy. The Senate now must consider its own version of the legislation.