Bonuses From Companies Bailed Out By TARP Could Be Taxed

Thursday, February 4, 2010 at 1:17PM
Talk Radio News Service (Admin) in Citigroup, Congress, Frontpage 2, Goldman Sachs, JP Morgan, Morgan Stanley, News/Commentary, Senator Barbara Boxer, Senator Jim Webb, TARP, Wells Fargo, bail out, bank of america, laurel brishel prichard, merrill lynch

By Laurel Brishel Prichard University of New Mexico/ Talk Radio News Service

Sen. Barbara Boxer (D-Calif.) and Sen. Jim Webb (D-Va.) introduced a bill that would tax bonuses distributed by financial institutions bailed out by the Troubled Assets Relief Program (TARP) during a press conference Thursday afternoon.

The bill would place a 50 percent tax on bonuses over $400,000. Some of the companies that would be hit include Bank of America, Citigroup, Goldman Sachs, Merrill Lynch, Morgan Stanley, JP Morgan and Wells Fargo.

The bill would require a tax on the bonuses even if the companies have already paid back the money initially received through TARP.

“If your going to get that kind of bonus, you can share it 50-50 with the people who helped bail you out. We believe that's fair, reasonable and its not any example of what people will call class warfare,” said Webb.

Both Senators hope for bipartisan support on the bill.

Article originally appeared on Talk Radio News Service: News, Politics, Media (http://www.talkradionews.com/).