House votes for hefty tax on bonuses
WASHINGTON -- House members last week approved a bill that seeks to recover millions in bonus money paid to individuals who worked for the AIG insurance firm and other financial companies that received federal bailout funds.
The House voted 328-93 for legislation that would levy steep taxes on the bonuses. The bill would impose a 90 percent special income tax on bonus recipients who earn more than $125,000 this year.
The bill was formed in a day after most lawmakers expressed outrage upon learning that American International Group had committed $165 million in bonuses and retention pay to executives in the unit that had contributed to the firm's near-collapse last fall.
AIG has received more than $170 billion in federal assistance to move away from the brink.
Most of the votes for the bill came from House members who argued it was unconscionable for bonuses -- more than $1 million in some cases -- to be paid to executives in the financial products division.
Others cautioned against taking action so quickly on a matter that could have unintended consequences.
Some industry officials said the bill was punitive, and could discourage companies from participating in federal rescue programs. It also could lead to an exodus of valued workers from bailed out firms, they said.
Reps. Shelley Berkley and Dina Titus, both D-Nev., and Dean Heller, R-Nev., voted for the tax bill.
VOLUNTEERISM BILL PASSED
The House passed a bill to expand national service. The vote was 321-105.
The legislation, estimated to cost $6 billion over five years, would provide incentives for students and senior citizens to sign up for AmeriCorps and other volunteer programs.
Supporters said the bill answered President Barack Obama's call to service and would help Americans invest in their communities.
But several lawmakers expressed concern about the cost, and questioned the merit of "paying volunteers."
Berkley, Titus and Heller voted for the bill.
SENATE PASSES PUBLIC LAND BILL
The Senate renewed its support for legislation that would designate more than 2 million acres of wilderness and establish protections for other types of public land.
The bill was a bundling of more than 160 smaller bills, most of which had been stalled in Congress last year. It passed 77-20, as most of the items were for local projects supported by individual senators.
The bill would expand wilderness in California, Utah, Oregon, Colorado, Virginia and West Virginia. It also would write into law the National Landscape Conservation System, a network of 27 million acres of federally recognized areas established by order of President Bill Clinton in 2000.
Sponsors called the bill the most significant public land measure to be considered by Congress in years. Critics called it a government land grab.
Sen. Harry Reid, D-Nev., and Sen. John Ensign, R-Nev., voted for the bill.
The Senate passed the same bill earlier this year, but it was held up in the House on a technicality. After making a minor change, the Senate voted again, and the bill is expected to clear the House soon.
Contact Stephens Media Bureau Chief Steve Tetreault at stetreault @stephensmedia.com or 202-783-1760.
