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The AIG Punitive Tax is revolting

By: tankertodd (Diary)  |  March 19th, 2009 at 03:53 PM  | 

RESIZE: AAA

I’m floored that so many Republicans in the house voted for a 90% tax on bonuses paid out by companies who took bailouts.  Where are our principles?  We know the other side has no principles but why do we join them in such a low place?

Look, a 90% tax is a 90% tax.  We don’t know the terms and conditions of the bonuses.  We don’t know the purpose of the contracts, or what AIG receives in return for such largess.  Frankly, we shouldn’t be concerning ourselves with what a private firm and its employees consent to, no more than we interfere with what consenting adults do.  Populism and petty outrage are no excuses to throw principles out of the boat, especially when the anger is largely directed at the wrong things and the wrong people.

This situation has been clearly created by the government, not private institutions.  The government chose to tinker with the free market in the form of easy money for sub-prime borrowers, which added the gasoline to the fire.  Government chose to not let these idiot firms fail.  And now government leaders gets riled up over the consequences their actions generated because they chose – say it with me – to ABANDON THEIR PRINCIPLES IN THE FIRST PLACE!  Government should have no role in bailing out firms that fail or in driving social goals through financial games.

And the other aspect that simply a$$es me up is the sense that somehow a bailout dollar flows from the government into the cost center that funds the outrage <i>du jour.</i>  This is simply getting ridiculous.  These costs existed before the outlay of cash.  Why aren’t we outraged at the outlay of cash for government spending?  We KNOW those dollars come from us, whereas the AIG dollars consist of their operating cash, the money they raise from capital markets, assets, and lots of other things.  Frankly, AIG could sell a unit or some assets and say THOSE dollars went to bonuses.  However, Nancy Pelosi STILL have Air Force jets, 100% taxpayer funded (and probably more expensive than the private equivalent), standing by awaiting her beck and call to fly her to whatever planet she came from.

But the conversation itself is ridiculous.

The Republican Party is abandoning its principles.  Worse yet, I don’t think elected Republicans on the whole even KNOW what their principles are!  I really don’t!  I think they <i>think</i> they know their principles, but I suspect most of them are on Ronald Reagan autopilot.  Instead of asking “What Would Reagan Do” they should be asking “What is the Right Thing to Do?”

A little less outrage, and a little more thought, please.

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COMMENTS

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  • Alberta

    For Country and People, comrade.

  • Rod_Patrick

    The Rs should have never participated in the deliberation of this Bill.

  • ColdWarrior

    Core Principles from the 2008 Republican Party Platform Relevant to Federal Government Spending and for contrasting Republican goals from those of the Democrat Party (http://www.gop.com/2008Platform/) And Seemingly Routinely Ignored or Abandoned by Our “Republican” Members of the House and Senate:

    Republicans Support Enforcing Constitutional Safeguards

    Republicans will uphold and defend our party?s core principles: Constrain the federal government to its legitimate constitutional functions. (P. 15.)

    Republicans Support Only Constitutionally Necessary Federal Spending

    Spend only what is necessary, and tax only to raise revenue for essential government functions. (P. 15.)

    Republicans Reject Unconstitutional, Wasteful Pork-Barrel Special Interest Spending

    The other party wants to continue pork barrel politics; we are disgusted by it, no matter who practices it. The other party wants to ignore fiscal problems while squandering billions on ineffective programs; we are determined to end that waste. The entrenched culture of official Washington ? an intrusive tax-and-spend liberalism — remains a formidable foe, but we will confront and ultimately defeat it. (P. 15.)

    Republicans Will Stop Unconstitutional Special Interest Earmark Spending

    Earmarking must stop. To eliminate wasteful projects and pay-offs to special interests,
    we will impose an immediate moratorium on the earmarking system and reform the
    appropriations process through full transparency. Tax dollars must be distributed on
    the basis of clear national priorities, not a politician?s seniority or party position. (P. 16.)

    Republicans Believe ?It?s Your Money, Taxpayers?

    The most important distinction between Republicans and the leadership of today?s Democratic Party concerning taxes is not just that we believe you should keep more of what you earn. That?s true, but there is a more fundamental distinction. It concerns the
    purpose of taxation. We believe government should tax only to raise money for its essential functions. (P. 23.)

    Republicans Oppose Using the Tax Code for Social Engineering

    The Republican Party will put a stop to both social engineering and corporate handouts by simplifying tax policy, eliminating special deals, and putting those saved dollars back into the taxpayers? pockets. (P. 23.)

    Republicans Support Reducing Corporate Tax Rates

    We support a major reduction in the corporate tax rate so that American companies stay competitive with their foreign counterparts and American jobs can remain in this country. (P. 23.)

    Republicans Know We Cannot Tax and Spend Our Way to Prosperity

    The last thing Americans need right now is tax hikes. On the federal level, Republicans lowered taxes in 2001 and 2003 in order to encourage economic growth, put more money in the pockets of every taxpayer, and make the system fairer. It worked. If Congress had then controlled its spending, we could have done even more. (P. 25.)

    Haven’t seen this principle in the Platform, but then it seems self-evident: don’t vote for any legislation that you have not actually read.

  • mecat212

    This site and all of the contents are an absolute God send! I was directed here by a comment made by Mark Levin one evening on his radio show and I fell like home with kindred spirits.

    Can anyone help me with this tax? Isn’t it unconstitutional to target specific citizens with this type of tax. I was surfing the constitution and came up with a few items such as “Section 8. The Congress shall have Power
    To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be “uniform” throughout the United States; and this one ‘Congress cannot impose direct taxes except in proportion to population. The 16th Amendment superseded this clause, but only as it pertains to income tax.”

    Where does the House get the gaul to impost a tax on only a specific group of people?

    Am I wrong?

  • tnjim

    Do you think these socialists give a rat’s tail about the Constitution? With all the phony outrage out there over the AIG bonuses they see this as their ticket to circumvent the Constitution. I don’t think you’re wrong. But I don’t see AIG fighting this on Constitutional grounds. Too much “outrage” out there. Maybe Congress will learn to read spending bills before they pass them, but I’m not holding out hope. As I said in another post, I would rather see AIG get these bonuses than see our money go to all the pork projects in the so-called stimulus bill.