Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

White House Aides: AIG Bonus Tax 'Dangerous'

By Kevin Spak,  Newser Staff

Posted Mar 23, 2009 7:41 AM CDT
Email

(Newser) – The White House might not be onboard with bills sprinting through Congress to tax away AIG’s outrage-inducing bonuses. Top White House financial advisers are reacting coolly to the suggestion, the Washington Post reports. “The president has been clear we don’t want to govern out of anger,” said one economic official.

“The House bill may go too far in terms of some legal issues, constitutional validity, using the tax code to surgically punish a small group," said Joe Biden's top economic adviser. "That may be a dangerous way to go."

In this March 16, 2009 file photo, Treasury Secretary Timothy Geithner, left, looks at President Obama as they meet with small business owners and community lenders at the White House in Washington.
In this March 16, 2009 file photo, Treasury Secretary Timothy Geithner, left, looks at President Obama as they meet with small business owners and community lenders at the White House in Washington.   (AP Photo/Gerald Herbert, File)
Barack Obama, accompanied by, from left, Economic Adviser Christina Romer, Treasury Secretary Timothy Geithner, and Economic Adviser Lawrence Summers, gestures while making remarks on AIG Wednesday.
Barack Obama, accompanied by, from left, Economic Adviser Christina Romer, Treasury Secretary Timothy Geithner, and Economic Adviser Lawrence Summers, gestures while making remarks on AIG Wednesday.   (AP Photo/Ron Edmonds)
President Barack Obama, right, accompanied by Timothy Geithner, speaks about AIG, Wednesday, March 18, 2009, on the South Lawn of the White House.
President Barack Obama, right, accompanied by Timothy Geithner, speaks about AIG, Wednesday, March 18, 2009, on the South Lawn of the White House.   (AP Photo/Ron Edmonds)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 1 of 1 comment
bacimom
Mar 23, 2009 3:39 AM CDT
The bonuses are legal, them accepting them is revolting. Barney Frank had the right idea Sunday. The little guys getting real earned $100k bonuses as part of salary for selling insurance (AIG's actual mission) should keep their money. All the rest of retention bonueses to people who are getting bonuses for moving (and losing) invisible money around should be informed by Liddy to give it back or get fired. Those who have already left the company have no need for a retention bonus. The President is a constitutional lawyer. This tax (while making us feel good like a screaming session) albeit understandable and maybe even desirable is unconstitutional and won't pass court muster.

The problem with flogging AIG
New York Times

Obama refuses to govern in anger
Bloomberg

Bonus bill runs into problems in the Senate
AFP

 
Joe Biden • White House • AIG • bonuses • Obama administration • clawback

More Newser Stories

Obama Rushed Solyndra Loan

Gibbs Likely to Go In White House Shakeup

White House Peace Reigns Despite Woes

Delaware Now the 2010 Senate Race to Watch

Old Gray Lady Grabs Obama by the Ear
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne