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

House passes bill taxing Wall Street bonuses

[cnn-photo-caption image= 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. zago

    90% is too low. Why should they allow them to keep 10% of a plunder? The best rate should have been 105%: 100 % of the money back and 5% penalty so that they dont repeat the looting again. Now that they now that the cost is lower than the marginal benefit, they will still have incentive to handle the poor money as a haul

    March 19, 2009 03:21 pm at 3:21 pm |
  2. Fitz in Texas

    Folks this is dangerous! Obama fan or not, this is dangerous. Granted, these people should not have these bonuses, but they've been found guilty without a trail. And the sad part about this is the fact that the government knew these bonuses were going to be paid. Just always remember if the government can do it to them, they can do it to you!

    --"A government big enough to give you everything you want, is
    strong enough to take everything you have."--
    -–Thomas Jefferson--

    March 19, 2009 03:21 pm at 3:21 pm |
  3. JIM...TX

    I can't believe Congress is so worked up over getting AIG's $165 million back. That's PEANUTS! Go for the $170 BILLION and let the SOB's sink!!!!

    March 19, 2009 03:22 pm at 3:22 pm |
  4. According to CNN

    Many Washington politicans received hundreds of million dollars

    in campaign monies including Obama $102.000 campaign donation

    from AIG...The question is should not all these politicians return the

    money to AIG...???????

    March 19, 2009 03:22 pm at 3:22 pm |
  5. Ken

    Two things should happen here, one is that the tax should be at 100%, not at 90%, second, Dodd should resign for he is the cause of this happening. And after it is now known, was the largest recipient to over $100,000 in contributions.

    The GREED on Wall Street and the Banks, is truly a CRIME! NO HELP SHOULD BE GIVEN, let them fail and move on!

    March 19, 2009 03:22 pm at 3:22 pm |
  6. slickingdom

    This is the beginning of the end for the Wall St. thugs !! A failing
    corporation should not obtain bonuses, especially on the tax-payers
    dime !!!

    March 19, 2009 03:23 pm at 3:23 pm |
  7. Nick The Photographer

    Wow, a fix to the first major Obama administration misstep... and the GOP talks about it like we invaded another country illegally or something!

    RIP / GOP!

    March 19, 2009 03:25 pm at 3:25 pm |
  8. Fredrick

    We've now entered into a new chapter of American politics. Regardless of you views on the whole situation surrounding the AIG bonuses, when Congress makes motion to bring the federal govenment into the business of intereceding into people's personal affairs, you have an obstruction of justice. My concern is what congress will do next with its new found power and what the spells for the rest of America. Have we just ushered in a new Authoritarian form of Populist government?

    March 19, 2009 03:25 pm at 3:25 pm |
  9. not so fast!


    we the people will NOT move on so fast!

    agents of neo-con thieves dominate congress!

    March 19, 2009 03:25 pm at 3:25 pm |
  10. Eric

    That's awesome, should have been 100% but still. Close enough to get some of our money back.

    March 19, 2009 03:26 pm at 3:26 pm |
  11. stupid republican

    the republicans do not know where to stay on issues. they are too political. they do not care about people only their career.

    March 19, 2009 03:28 pm at 3:28 pm |
  12. Shirley in California

    Good. I didn't get my bonus this year and I did everything asked of me nor did I ruin my company. This will give them something to think about for a change. No new condos in Miami and no ski trips. I'm glad something is going to give them concern.

    March 19, 2009 03:28 pm at 3:28 pm |
  13. Eric

    They ran their company to the ground-how in the h___ do they deserve a bonus? And that "bonus" money is tax payer money.! WOW!!

    March 19, 2009 03:29 pm at 3:29 pm |
  14. TerryT

    And the congress over reacts and wipes their feet on the constitution.



    I want investigations NOW.

    I don't care if it leads to the right or left


    March 19, 2009 03:30 pm at 3:30 pm |
  15. Beejay

    Great move!!!!!! It's time these greedy fat cats did not get away with what the common people cannot get away with.

    March 19, 2009 03:31 pm at 3:31 pm |
  16. Gene

    Wow.. that's a pretty heavy tax.. but considering that any company receiving tax money shouldn't be paying bonuses anyway... this tax is well deserved. At least we know that in this way.. they have already paid back part of that stimulus money, involuntarily but oh well 🙂

    March 19, 2009 03:31 pm at 3:31 pm |
  17. Andrew

    Republicans are sharply divided between those that wish to listen to their constituents and those who are worried about the guys that are lining their pockets.

    March 19, 2009 03:32 pm at 3:32 pm |
  18. SQZ

    I'll be glad to pay 90% on the bonus as long as Barney Frank, Chris Dodd, Harry Reid, Bela Pelosi and ChuckU Schumer, to start with, are run out of town and permanently retired from the political scene. Moderate this.

    March 19, 2009 03:34 pm at 3:34 pm |
  19. Matt in MN

    Great... so next year, when they file their taxes for '09, they'll get to make reference to the bonus they were taxed 90% of, and get a ton of it back.

    I know we need to think about the short term and the here and now, but sometimes it would be smart to look towards the future and long term as well.

    March 19, 2009 03:36 pm at 3:36 pm |
  20. phoenix86

    Remove Dodd from all chairmanship positions and kick Pelosi out of the speaker roll. They are morons.

    March 19, 2009 03:37 pm at 3:37 pm |
  21. Tom

    This is so wrong to do this after the fact.

    This will do nothing good only make the Americans feel better for spending $2T on bailing out companies...

    March 19, 2009 03:40 pm at 3:40 pm |
  22. Michael

    Arrogance. Incompetence. Greed. Sounds as much like Congress as AIG.

    March 19, 2009 03:40 pm at 3:40 pm |
  23. Shirley

    Go get them and their bonuses!

    March 19, 2009 03:40 pm at 3:40 pm |
  24. flybyshoeing

    Let the lawsuits that Treasury tried to avoid begin ! Did all of Congress graduate from Regent University ?

    March 19, 2009 03:41 pm at 3:41 pm |
  25. Tammy

    What a joke! When are the democrats every going to get it right? I don't agree with the AIG bonuses but I don't blame them I blame the democrats. They allowed it in the contract. Why is there never any accountability or blame put on the people who really have caused the problem. Maybe Obama needs to stop flying around the country and pretending he is a celebrity and actually do his job. He needs to stop blaming everyone else for the mess we are in and deal with it. Maybe putting people on his cabinet who pay taxes like normal working people would have been a good start.

    March 19, 2009 03:42 pm at 3:42 pm |
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