Webb and Boxer introduce bill to impose a tax on excessive bonuses
- February 4, 2010
U.S. Senators Jim Webb (D-Va.) and Barbara Boxer (D-Calif.) introduced legislation today that would impose a 50 percent tax on excessive bonuses paid by Wall Street banks and other firms that benefited from billions in taxpayer assistance last year.
Saying the Taxpayer Fairness Act was not aimed at “class warfare,” Webb characterized it as a “one-shot” deal. “This is a tax on excessive bonuses of TARP recipients that received more than $5 billion dollars from the American taxpayer in 2009,” he said.
Webb called the proposed legislation a fair and reasonable approach for taxpayers whose money bailed the companies out. “Many of us supported the program with the understanding that, if the American taxpayers were putting $700 billion into the system in order to rescue these financial institutions, the American taxpayers would be able to get a return on their investment as well.”
The bill would impose the 50 percent tax on the bonuses of employees that exceeded $400,000 in 2009. The bill comes amid news that some Wall Street firms that benefited from taxpayer support plan to pay significant bonuses this year, including $4.4 billion in bonuses at Bank of American’s investment banking unit and $100 million in bonuses at AIG.