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Sat, Mar 21, 2009 - Page 10 News List

House passes bill taxing fat bonus payouts to AIG

FATCATS As public anger grows over the AIG payout of US$165 million in bonuses to executives, officials have voted to tax the bonuses at a rate of up to 90 percent


US Treasury Secretary Timothy Geithner confirmed such conversations with Dodd. He said the administration was worried about possible legal challenges to the provision.

“We expressed concern about this specific version,” Geithner said in an interview with CNN. “But we also worked with him to strengthen the overall bill.”

A similar — but not as punitive — bill to recoup bonus payments with taxes was gaining support in the Senate.

It would impose a 35 percent excise tax on the companies paying the bonuses and a 35 percent tax on the employees receiving them.

The taxes would apply to all companies receiving government bailout money, but they are clearly geared toward AIG.

Meanwhile, New York Attorney-General Andrew Cuomo said AIG has given him the list of employees who received a total of US$165 million in retention bonuses.

Cuomo said he wouldn’t release any employees’ names until his office has answered security concerns raised by the AIG employees.

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