I’m going to try to keep this one short.
Money Laundering is defined as the practice of disguising illegally obtained funds so that they seem legal.
So let me make this one simple. Last year, Tim Geithner arranged for a bailout of AIG. Chris Dodd and the rest of Congress went along with this plan, despite opposition from the American people. Some Congress members tried to put in language that limited the amount of bonuses paid to AIG employees. Chris Dodd and clan struck that language out.
AIG employees who had their contracts stating that they were owed these bonuses were paid. Yesterday, several congressional leaders made comments that indicated they advocated breaking the contracts, not paying the bonuses and challenging the screwed employees to sue them in court.
If I were in charge, I wouldn’t pay them. When they asked, I’d tell them to sue me.
I heard Pat Leahy say that yesterday, and I’ve heard Barney Frank and others say virtually the same thing.
Since the bonuses were paid legally, Congress has decided to tax these employees 90% on their bonuses.
Sounds pretty good, right? Congress frees some money for a bailout, and then taxes recipients of the bailout. Does this taxed money go back to the bailout fund? Hell no. This is tax revenues. This goes into the same black hole that all our taxes go.
If I were a more suspicious man, I’d say that this was planned. If I were more distrustful of a government with a list of reasons to distrust them, I’d say this is exactly what was supposed to happen.
Is this the end of 90% taxes on any perceived enemy of Congress? I seriously doubt it. This is most likely only the beginning of a second spiral downward. When wealthy people are punished for their wealth, they do things like leave. When there are no more wealthy people, who pays the bills that Congress will be sending?
Well played Congress, well played administration. Hopefully, this is it. You are now on notice. People won’t put up with this forever. You can go on whatever TV shows you want to try and spin this, but even stupid people figure it out eventually.