And the US Govt. spurred by general outrage, again does exactly the wrong thing.
Why would you amend the Tax code to do this? The tax code has nothing to do with this and has to be constantly simplified and not added to. The tax code should be relooked at only to reflect socio-economic changes and not political ones. Its a socio-economic tool and not a political tool.
IF (and its a big one) there are employees at the firm actually doing a good job of clearing up the mess, THEY deserve a bonus,if not now, maybe in the future, and they too will come under this net. And there are a million loopholes to worm out of a "bonus". The ideal way would be to cap payouts and go through tight regulations and approval process for every bonus. As nationalised (lets get real... yeah nationalised) firms, this CAN and SHOULD be done. I'm sure taxpayers would'nt mind paying people at these firms who really deserve it, for these few would be the one who're actually protecting the bailout money. For all my ranting, I still believe in people and I do believe that some that really do a good job do exist.
And American taxpayers shouldn't have to resort to changes in tax code to get the money back. They simply ought to demand 100% of it back without a tax code change. They deserve the money back. The money has been stolen from them and doesn't require a change in law to get it back. A tax code change implies that many other institutions honestly restructuring and have the potential to turn a corner this year or the next will also be affected. It also implies that a government can be a vindictive and petty institution and I thought that was thrown out with Bush and his minions.
For once I agree with the minority Republicans who oppose this
"Led by Representative John A. Boehner of Ohio, the party leader, several House Republicans assailed the legislation, calling it a diversion by Democrats eager to escape scrutiny for failing to block the bonuses."
The Govt. had an opportunity to block such unfair payouts
...and they didn't. Its a Govt. screw up and it is acknowledged that people in the know, knew. Most of the payouts went out last week and the week before and the govt. could very well have blocked it.
As of now, employees of firms with bailouts should be considered public servants. The thieves should be punished and the ones doing the protecting effectively can be rewarded. Changing tax codes takes care of the former but restricts the latter.
Scorn Trails A.I.G. Executives, Even in Their Driveways
And this is completely wrong. The executives should be taken as a collective and dealt with in that way. Hounding individuals is simply not the way to go.