March 19th, 2009
02:53 PM ET
13 years ago

House passes bill taxing Wall Street bonuses

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/03/19/art.aig.gi.jpg caption="The House of Representatives passed legislation Thursday to try to recoup bonuses paid to Wall Street executives with taxpayer money."]WASHINGTON (CNN) - The House of Representatives passed legislation Thursday to try to recoup bonuses paid to Wall Street executives with taxpayer money.

The measure passed, 328-93; most Democrats supported the measure while Republicans were sharply divided.

A two-thirds majority among all members voting was required for passage.

The measure would tax individuals on any bonuses received in 2009 from companies getting $5 billion or more in money from the Troubled Asset Relief Program, or TARP. Bonuses for people with incomes over $250,000 would be taxed at a 90 percent rate.

The measure now moves to the Senate for further consideration.


Filed under: Congress
soundoff (97 Responses)
  1. Steve in Las Vegas,NV

    Well finally! Now on to the companies that lied about owing back taxes while getting bailout money

    March 19, 2009 02:53 pm at 2:53 pm |
  2. matt

    Where are the earmarks?

    March 19, 2009 02:54 pm at 2:54 pm |
  3. phoenix86

    Dodd should pay a penalty as well as Obama for letting this go. The House should be ashamed. This was their mistake, yet they want others to pay for it.

    TERM LIMITS. These politicians are corrupt and inept at best.

    March 19, 2009 02:55 pm at 2:55 pm |
  4. A.P. Fremont, Ca.

    Now how many of you think that would've happened with a Refiblican administration in office?????

    March 19, 2009 02:55 pm at 2:55 pm |
  5. Mississippi Mike

    What a load of crap! No one should be taxed at 90% for anything. I know this seems like "sticking it to the man" but isn't the American Dream the ability for each one of us to become someone who earns over $250k per year with the opportunity to earn a large bonus? I want that for me and for my kids. I'm not there yet and if our nation's policies keep trending the way they are, none of us will be able to achieve our financial dreams because as soon as we start making good money, it will all be confiscated.

    What happens in a crisis sets the precedent for what happens in good times and you can bet that this is just the beginning of punitive taxation.

    March 19, 2009 02:57 pm at 2:57 pm |
  6. JJ12345

    This will end up in court for a few years

    March 19, 2009 02:57 pm at 2:57 pm |
  7. Voter

    How dumb can the House get?

    March 19, 2009 02:57 pm at 2:57 pm |
  8. CAL

    The repubs are a bunch of losers why were they sharply divided. this has to be worst group of old tired men ever in DC. The party of no, they need to run each and every one of them out of town.

    March 19, 2009 02:58 pm at 2:58 pm |
  9. Jon in CA

    Amazing.

    Democrats GIVE the green-light to make bonuses... and then scurry to levy a huge TAX on those bonuses.

    And then cry and bemoan businesses leaving the US????

    Does ANY democrat know the definition of insanity?? Any?? Just one of you???

    March 19, 2009 02:58 pm at 2:58 pm |
  10. marsha

    I can't believe Fannie and Freddie are now paying multi-million dollar bonuses. In light of all the flap with AIG, that's really flipping the bird to the American taxpayer.

    March 19, 2009 02:59 pm at 2:59 pm |
  11. wwf

    Why would the GOP be divided? Oh, I forgot. It taxes the rich.

    March 19, 2009 02:59 pm at 2:59 pm |
  12. Eyitayo Onifade

    I don't like the idea of using the tax code in this manner. It's alright to be outraged but the message being sent is that "bonuses" in general are border on criminal activity. Businesses can't function if they are subject to the arbitrary political whims of congress slapping them with new taxes for honoring contractual obligations they already approved. I think the smarter move on the part of government if they truly have a problem with these bonuses is to simply subtract that amount of money from future payouts to AIG, as the Obama administration has already suggested. Congress is playing a dangerous game that's going to make things worse regardless of the fiscal strategy we employ.

    March 19, 2009 02:59 pm at 2:59 pm |
  13. Brian Crooks

    I would like to see the Republicans voting to allow these guys to keep the bonuses to come on TV and explain why. At the very least, they should be forbidden from voicing anger about the bonuses or placing the blame on ANYONE for this happening from this day forward. The hypocrisy is stomach-turning.

    March 19, 2009 03:00 pm at 3:00 pm |
  14. Obama 2.0

    Get my money back!

    March 19, 2009 03:01 pm at 3:01 pm |
  15. joanne

    I bekieve W Gush abd cheney and Rumsfield and many others belong in the Hague in International Court for killing over 2 million civilians in Iraq in 2003. there was no reason to go to war ecvept Bush and Cheney thought they would be able to capture all the Iraqies and all the crude inthat territory.

    shelfish pigs.

    March 19, 2009 03:02 pm at 3:02 pm |
  16. proudliberal-independent

    it appears the republicans are the ones who are trying to protect these executive's bonuses. and they are the ones throwing all the accusations and finger pointing around ,too. if this continues to be their game plan, they won't survive. the administration was trying to bring repubs on board with the provision being taken out. the repubs used it as a political tactic to attack the administration, and their votes are on record, now, to back up my point.

    March 19, 2009 03:02 pm at 3:02 pm |
  17. Dan, TX

    Alright – Republicans voting for tax increases!

    I agree that any person, through income, capital gains, business income, anything that gives them an income in the millions ought to pay higher taxes to help our country.

    $0-1,000,000 same tax rate as now.
    for the income above $1 million 40% of that extra money should go to the government to pay for the bailout.

    March 19, 2009 03:04 pm at 3:04 pm |
  18. Matthew, Detroit

    NO MORE BAIL OUT MONEY.

    The answer is not taxing and coming up with some joke law.

    The joke is Barack is in charge.

    His white house did this.

    His Senator Dodd did this.

    DODD should Resign. Barack should Resign. Liars.

    March 19, 2009 03:05 pm at 3:05 pm |
  19. Eric

    Chop chop Senate, keep our tax payer money out of the greedy hands of these people who have sunk our country.

    March 19, 2009 03:05 pm at 3:05 pm |
  20. Mel

    Good. Too bad it wasn't 100%.

    March 19, 2009 03:05 pm at 3:05 pm |
  21. Sorcha Hysmith

    those people should not have ACCEPTED those bonuses anyway, particularly not in this climate. I think this is the best way to recoup if the companies themselves are shameless enough to still pay the bonuses out.

    March 19, 2009 03:06 pm at 3:06 pm |
  22. Victim of Bush/Chenney criminal behavior

    I lost all my money because these two were only helping their cronies. Oh yes, LIMBAUGH, THE LEADER OF THE REPUBLICAN PARTY IS A WONDERFUL COMEDIAN!

    March 19, 2009 03:06 pm at 3:06 pm |
  23. Matthew, Detroit

    All the DEMS who complained when someone SUGGESTED that we

    hold the vote and read a bill.

    NOW Nancy Pelosi claims that no one in congress voted on this.

    NO you ALL voted on this. But since you are ramming bills through

    no one is reading the fine print.

    CROOKS like DODD slip it in the bill. Dirty Lying Dem Dodd.

    CRIMINAl. They should put him in jail. They should make him pay back all the campaign money he received from AIG. Barack too.

    March 19, 2009 03:07 pm at 3:07 pm |
  24. Honestlady

    Good!!! I do have one question...why were republicans divided on this bill? Who would say no. Is this another case of repubs looking out for the wealthy????

    March 19, 2009 03:07 pm at 3:07 pm |
  25. Axl in Iowa

    Athough I am as against these bonuses as the next guy. I think this is a blatant abuse of authority. What is Congress thinking. This is nothing short of a government sponsored public lynching. Can't you people see what is happening here. This will spawn events to come that will make shock and aww look like childs play.

    But hey. I'm IN

    Off with their heads. Hooorahh

    March 19, 2009 03:08 pm at 3:08 pm |
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