tag:blogger.com,1999:blog-9208928.post1916842710744146064..comments2024-03-29T03:16:05.261-04:00Comments on Start Making Sense: AIG bonus taxDaniel Shavirohttp://www.blogger.com/profile/14710628584922961682noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-9208928.post-45992291041608751452009-03-20T08:18:00.000-04:002009-03-20T08:18:00.000-04:00Professor Laurence Tribe addresses the constitutio...Professor Laurence Tribe addresses the constitutionality issues here:<BR/><BR/>http://blogs.wsj.com/law/2009/03/18/would-an-aig-bonus-tax-pass-constitutional-muster-a-tribe-calls-yes/Unknownhttps://www.blogger.com/profile/05119377249288487087noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-16402340157979104842009-03-19T22:18:00.000-04:002009-03-19T22:18:00.000-04:00The potential consequences of this "tax" could be ...The potential consequences of this "tax" could be a lot more money on the line for taxpayers. These bonuses were given to people who (as comptemptible as you might find them) were unwinding risky positions for the company. They were paid a "retention" bonus at the end of the unwinding. Who will stay now to unwind these positions for 0 dollars? Congress through their petty circus show have just put another trillion plus on the line with no chance of retaining the (again, comptemptible though they might be) people knowledgeable enough to unwind these complex trades.Israel Penhoshttps://www.blogger.com/profile/11392884711456802898noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-64718288829718407692009-03-19T18:11:00.000-04:002009-03-19T18:11:00.000-04:00Look, when you've got a question about what should...Look, when you've got a question about what should be done in such a situation as this, go to history. The common law system that this country is built on has precedents for dealing with these types of situations. Common law is 800+ years old, don't re-invent the wheel! The way to do it is through what's called a "derivative action," which is a lawsuit launched by the shareholders of a company against the managers. In this case, the US Government is a shareholder, so they can launch a derivative action against either (1) the managers who received the bonuses and/or (2) the managers who approved the bonuses (even if it was for themselves). If the government's lawyers can prove that the bonus structure was not in the interest of the shareholders, then those managers who approved the bonuses are personally liable for the bonuses and must pay those bonuses back to the company...and then the company will use that money for the interests of the shareholders... the US GOVERNMENT! Don't reinvent the wheel by breaking the sensible legal traditions we have.Insurance Bloggerhttps://www.blogger.com/profile/13004093851498422227noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-66654940781827998222009-03-18T12:27:00.000-04:002009-03-18T12:27:00.000-04:00You have a point, Tax Rascal, that perhaps I ought...You have a point, Tax Rascal, that perhaps I ought to know more details before commenting. But the bonuses went to the division that lost all the money that wiped out AIG, and there's evidence that they were doing bad things and strenuously resisting transparency since at least 2005.Daniel Shavirohttps://www.blogger.com/profile/14710628584922961682noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-3611307506861235032009-03-18T11:59:00.000-04:002009-03-18T11:59:00.000-04:00I'm not sure how you can claim that this is a bad ...I'm not sure how you can claim that this is a bad deal, when nobody is sure <A HREF="http://www.taxrascal.com/why-barney-franks-phony-aig-outrage-is-worse-than-the-bonuses/360/" REL="nofollow">who at AIG is getting the bonuses</A>, much less who deserves them. AIG has plenty of room for successful people, even if the company is, in the aggregate, losing lots of money.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9208928.post-65503167425618580412009-03-18T03:57:00.000-04:002009-03-18T03:57:00.000-04:00I could not agree with you more. Yes it is a slipp...I could not agree with you more. Yes it is a slippery slope with 100% tax but if there was a time, this is it. My religious views make it difficult for me to comprehend the hypocrisy of their actions.(although hypocrits abound in my faith) While millions are starving and losing their jobs, these executives are giving themselves millions of our tax dollars. "to the gallows"Unknownhttps://www.blogger.com/profile/13839359879299245553noreply@blogger.com