20 Mar 2009

House passes AIG bonus tax

10:54 am on 20 March 2009

The US House of Representatives has passed a bill to tax bonuses to employees at companies getting federal bailout money and recoup most of the $US165 million paid to executives at American International Group.

AIG has complied with a subpoena and provided details of bonus recipients to New York Attorney General Andrew Cuomo.

The House voted 328-93 on Thursday to approve a tax of 90% on bonuses for certain executives at companies getting government aid.

The tax would apply to executives with incomes over $US250,000 who worked for companies that received at least $US5 billion in federal aid. That would include others getting help, such as the Fannie Mae mortgage financing company.

AIG has received up to $US180 billion in federal aid.

The Senate is to consider its own plan to recoup the bonuses via a 70% tax for companies that received at least $US100 million from a federal bailout fund of $US700 billion.

The two versions would have to be reconciled before becoming law.