Reps pass 90-per cent AIG bonus tax bill, Senators relent

20 March 2009

The US House of Representatives has passed a bill on Thursday to slap 90-per cent tax on employee bonuses at AIG and other companies that were bailed out by tax payers money; however, the bill was blocked by Republicans in the Senate.

"I don't believe that Congress should rush to pass yet another piece of hastily crafted legislation in this very toxic atmosphere, at least without understanding the facts and the potential unintended consequences," said senator Jon Kyl, Arizona.

"Frankly, I think that's how we got into the current mess," he added.

House Democratic leaders unveiled the bill as the CEO of AIG, which has received $182 billion in bailout money, testified about $165 million in bonuses paid out in the past week to about 400 employees in its financial products division. (See: Failed AIG's bonuses to employees draw flak). 

The bill was designed to recoup some of the bonuses.

Earlier, the House voted 328-93, receiving the two-thirds majority required to pass the controversial bill.

House speaker Nancy Pelosi said, "We want our money back and we want our money back now for the taxpayers."

President Barack Obama also welcomed the result of the House vote.