Congressman Sander Levin

(Washington D.C.)- The U.S. House of Representatives approved legislation to tax the bonuses paid to executives using taxpayer funds.  The vote was 328 to 93.  Mr. Levin, a member of the Ways and Means Committee that wrote the legislation, spoke in favor of passage.  Below are excerpts of his written statement:

“We are in the middle of a national economic crisis.

“We have lost 4.4 million jobs during this recession.  People are losing their homes and in the last quarter of 2008 US Households net worth fell by $5.1 trillion.

“All must participate in the solution, and no one should exploit it.

“Congress has taken extraordinary steps to stabilize financial market over the last few months, and pumped billions of taxpayer dollars into our nation’s banks.  AIG alone has received $150 Billion.

“These AIG executives – who worked in the division that wrecked the havoc -- are taking home more money in one bonus payment than 99 percent of Americans take home in a year.  The argument that these bonuses were necessary because they are the only ones that could undo the damage is fallacious.

We have the authority to use the tax code – not to punish -- but to protect the taxpayer.”

Background on the legislation:

Taxes the bonuses of highly paid individuals at a rate of 90 percent if their employer received more than five billion dollars in Federal assistance under the Troubled Asset Relief Program (TARP). 

Applies to individuals whose total family income exceeds $250,000 per year (adjusted gross income). 

Affects bonuses received after January 1, 2009 and would cover companies receiving more than three-fourths of financial rescue funds already distributed.  

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